---
kind: "section"
citation: "42 U.S.C. § 7675"
title: "42"
title_heading: "The Public Health and Welfare"
number: "7675"
heading: "American innovation and manufacturing"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/7675"
units:
  - "Chapter 85 — Air Pollution Prevention and Control"
  - "Subchapter VII — American Innovation and Manufacturing"
---

# §7675. American innovation and manufacturing

- (a) **Short title—** This section may be cited as the “American Innovation and Manufacturing Act of 2020”.
- (b) **Definitions—** In this section:
  - (1) **Administrator—** The term “[Administrator](/usc/42/7602.md?p=a)” means the [Administrator](/usc/42/7602.md?p=a) of the Environmental Protection [Agency](/usc/42/8262.md?p=1).
  - (2) **Allowance—** The term “allowance” means a limited authorization for the [production](/usc/42/7671.md?p=11) or [consumption](/usc/42/7671.md?p=6) of a regulated substance established under [subsection (e)](#e).
  - (3) **Consumption—** The term “[consumption](/usc/42/7671.md?p=6)”, 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](/usc/42/7671.md?p=11) 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](/usc/42/7671.md?p=6) baseline” means the baseline established for the [consumption](/usc/42/7671.md?p=6) of regulated substances under [subsection (e)(1)(C)](#e-1-C).
  - (5) **Exchange value—** The term “exchange value” means the value assigned to a regulated substance in accordance with subsections [(c)](#c) and [(e)](#e), as applicable.
  - (6) **Import—** The term “[import](/usc/42/7671.md?p=7)” 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](/usc/42/7671.md?p=11)” 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](/usc/42/7602.md?p=a)).
    - (B) **Exclusions—** The term “[produce](/usc/42/7671.md?p=11)” 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 reclamation, reuse, or recycling of a regulated substance.
  - (8) **Production baseline—** The term “[production](/usc/42/7671.md?p=11) baseline” means the baseline established for the [production](/usc/42/7671.md?p=11) of regulated substances under [subsection (e)(1)(B)](#e-1-B).
  - (9) **Reclaim; reclamation—** The terms “reclaim” and “reclamation” mean—
    - (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](/usc/42/7602.md?p=a)); 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)](#b-9-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)](#c-1); and
    - (B) a substance included as a regulated substance by the [Administrator](/usc/42/7602.md?p=a) under [subsection (c)(3)](#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:

    | Chemical Name | Common Name | Exchange Value |
    | --- | --- | --- |
    | CHF<sub>2</sub>CHF<sub>2</sub> | HFC–134 | 1100 |
    | CH<sub>2</sub>FCF<sub>3</sub> | HFC–134a | 1430 |
    | CH<sub>2</sub>FCHF<sub>2</sub> | HFC–143 | 353 |
    | CHF<sub>2</sub>CH<sub>2</sub>CF<sub>3</sub> | HFC–245fa | 1030 |
    | CF<sub>3</sub>CH<sub>2</sub>CF<sub>2</sub>CH<sub>3</sub> | HFC–365mfc | 794 |
    | CF<sub>3</sub>CHFCF<sub>3</sub> | HFC–227ea | 3220 |
    | CH<sub>2</sub>FCF<sub>2</sub>CF<sub>3</sub> | HFC–236cb | 1340 |
    | CHF<sub>2</sub>CHFCF<sub>3</sub> | HFC–236ea | 1370 |
    | CF<sub>3</sub>CH<sub>2</sub>CF<sub>3</sub> | HFC–236fa | 9810 |
    | CH<sub>2</sub>FCF<sub>2</sub>CHF<sub>2</sub> | HFC–245ca | 693 |
    | CF<sub>3</sub>CHFCHFCF<sub>2</sub>CF<sub>3</sub> | HFC–43–10mee | 1640 |
    | CH<sub>2</sub>F<sub>2</sub> | HFC–32 | 675 |
    | CHF<sub>2</sub>CF<sub>3</sub> | HFC–125 | 3500 |
    | CH<sub>3</sub>CF<sub>3</sub> | HFC–143a | 4470 |
    | CH<sub>3</sub>F | HFC–41 | 92 |
    | CH<sub>2</sub>FCH<sub>2</sub>F | HFC–152 | 53 |
    | CH<sub>3</sub>CHF<sub>2</sub> | HFC–152a | 124 |
    | CHF<sub>3</sub> | HFC–23 | 14800. |

  - (2) **Review—** The [Administrator](/usc/42/7602.md?p=a) may—
    - (A) review the exchange values listed in the table contained in [paragraph (1)](#c-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) the best available science; 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](/usc/42/7602.md?p=a) may designate a substance not included in the table contained in [paragraph (1)](#c-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](/usc/42/7602.md?p=a) in accordance with the basis described in [paragraph (2)(B)](#c-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—**
      - (i) **In general—** Nothing in this paragraph authorizes the [Administrator](/usc/42/7602.md?p=a) to designate as a regulated substance a blend of substances that includes a saturated hydrofluorocarbon for purposes of phasing down [production](/usc/42/7671.md?p=11) or [consumption](/usc/42/7671.md?p=6) of regulated substances under [subsection (e)](#e), even if the saturated hydrofluorocarbon is, or may be, designated as a regulated substance.
      - (ii) **Authority of Administrator—** [Clause (i)](#c-3-B-i) does not affect the authority of the [Administrator](/usc/42/7602.md?p=a) to regulate under this Act[^1] a regulated substance within a blend of substances.
- (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](/usc/42/7602.md?p=a), but not less frequently than annually, each [person](/usc/42/7602.md?p=e) who, within the applicable reporting period, [produces](/usc/42/7671.md?p=11), [imports](/usc/42/7671.md?p=7), exports, destroys, transforms, uses as a process agent, or reclaims a regulated substance shall submit to the [Administrator](/usc/42/7602.md?p=a) a report that describes, as applicable, the quantity of the regulated substance that the [person](/usc/42/7602.md?p=e)—
      - (i) [produced](/usc/42/7671.md?p=11), imported, and exported;
      - (ii) reclaimed;
      - (iii) destroyed by a technology approved by the [Administrator](/usc/42/7602.md?p=a);
      - (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)](#d-1-A) shall be signed and attested by a responsible officer (within the meaning of the Clean Air Act ([42 U.S.C. 7401](/usc/42/7401.md) et seq.)).
      - (ii) **No further reports required—** A report under [subparagraph (A)](#d-1-A) shall not be required from a [person](/usc/42/7602.md?p=e) if the [person](/usc/42/7602.md?p=e)—
        - (I) permanently ceases [production](/usc/42/7671.md?p=11), importation, exportation, destruction, transformation, use as a process agent, or reclamation of all regulated substances; and
        - (II) notifies the [Administrator](/usc/42/7602.md?p=a) in writing that the requirement under [subclause (I)](#d-1-B-ii-I) has been met.
      - (iii) **Baseline period—** Each report under [subparagraph (A)](#d-1-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](/usc/42/7602.md?p=a) may allow any [person](/usc/42/7602.md?p=e) subject to the requirements of [paragraph (1)(A)](#d-1-A) to combine and include the information required to be reported under that paragraph with any other related information that the [person](/usc/42/7602.md?p=e) is required to report to the [Administrator](/usc/42/7602.md?p=a).
- (e) **Phase-down of production and consumption of regulated substances—**
  - (1) **Baselines—**
    - (A) **In general—** Subject to [subparagraph (D)](#e-1-D), the [Administrator](/usc/42/7602.md?p=a) shall establish for the phase-down of regulated substances—
      - (i) a [production](/usc/42/7671.md?p=11) baseline for the [production](/usc/42/7671.md?p=11) of all regulated substances in the United States, as described in [subparagraph (B)](#e-1-B); and
      - (ii) a [consumption](/usc/42/7671.md?p=6) baseline for the [consumption](/usc/42/7671.md?p=6) of all regulated substances in the United States, as described in [subparagraph (C)](#e-1-C).
    - (B) **Production baseline described—** The [production](/usc/42/7671.md?p=11) baseline referred to in [subparagraph (A)(i)](#e-1-A-i) is the quantity equal to the sum of—
      - (i) the average annual quantity of all regulated substances [produced](/usc/42/7671.md?p=11) 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](/usc/42/7671.md?p=11) level of hydrochlorofluorocarbons in calendar year 1989; and
        - (II) 0.42 percent of the [production](/usc/42/7671.md?p=11) level of chlorofluorocarbons in calendar year 1989.
    - (C) **Consumption baseline described—** The [consumption](/usc/42/7671.md?p=6) baseline referred to in [subparagraph (A)(ii)](#e-1-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](/usc/42/7671.md?p=6) level of hydrochlorofluorocarbons in calendar year 1989; and
        - (II) 0.42 percent of the [consumption](/usc/42/7671.md?p=6) level of chlorofluorocarbons in calendar year 1989.
    - (D) **Exchange values—**
      - (i) **In general—** For purposes of establishing the baselines pursuant to subparagraphs [(B)](#e-1-B) and [(C)](#e-1-C), the [Administrator](/usc/42/7602.md?p=a) shall use the exchange values listed in the table contained in [subsection (c)(1)](#c-1) for regulated substances and the following exchange values for hydrochlorofluorocarbons and chlorofluorocarbons:

        | Table 2 |  |  |
        | --- | --- | --- |
        | Chemical Name | Common Name | Exchange Value |
        | CHFC1<sub>2</sub> | HCFC–21 | 151 |
        | CHF<sub>2</sub>C1 | HCFC–22 | 1810 |
        | C<sub>2</sub>HF<sub>3</sub>C1<sub>2</sub> | HCFC–123 | 77 |
        | C<sub>2</sub>HF<sub>4</sub>C1 | HCFC–124 | 609 |
        | CH<sub>3</sub>CFC1<sub>2</sub> | HCFC–141b | 725 |
        | CH<sub>3</sub>CF<sub>2</sub>C1 | HCFC–142b | 2310 |
        | CF<sub>3</sub>CF<sub>2</sub>CHC1<sub>2</sub> | HCFC–225ca | 122 |
        | CF<sub>2</sub>C1CF<sub>2</sub>CHC1F | HCFC–225cb | 595 |

        | Table 3 |  |  |
        | --- | --- | --- |
        | Chemical Name | Common Name | Exchange Value |
        | CFC1<sub>3</sub> | CFC–11 | 4750 |
        | CF<sub>2</sub>C1<sub>2</sub> | CFC–12 | 10900 |
        | C<sub>2</sub>F<sub>3</sub>C1<sub>3</sub> | CFC–113 | 6130 |
        | C<sub>2</sub>F<sub>4</sub>C1<sub>2</sub> | CFC–114 | 10000 |
        | C<sub>2</sub>F<sub>5</sub>C1 | CFC–115 | 7370 |

      - (ii) **Review—** The [Administrator](/usc/42/7602.md?p=a) may—
        - (I) review the exchange values listed in the tables contained in [clause (i)](#e-1-D-i) on a periodic basis; and
        - (II) subject to notice and opportunity for public comment, adjust the exchange values solely on the basis of—
          - (aa) the best available science; 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)](#e-2-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](/usc/42/7602.md?p=e) shall—
      - (i) [produce](/usc/42/7671.md?p=11) a quantity of a regulated substance without a corresponding quantity of [production](/usc/42/7671.md?p=11) allowances, except as provided in [paragraph (5)](#e-5);
      - (ii) consume a quantity of a regulated substance without a corresponding quantity of [consumption](/usc/42/7671.md?p=6) allowances; or
      - (iii) hold, use, or transfer any [production](/usc/42/7671.md?p=11) allowance or [consumption](/usc/42/7671.md?p=6) allowance allocated under this section except in accordance with regulations promulgated by the [Administrator](/usc/42/7602.md?p=a) pursuant to [subsection (g)](#g).
    - (B) **Compliance—** For each year listed on the table contained in [subparagraph (C)](#e-2-C), the [Administrator](/usc/42/7602.md?p=a) shall ensure that the annual quantity of all regulated substances [produced](/usc/42/7671.md?p=11) or consumed in the United States does not exceed the product obtained by multiplying—
      - (i) the [production](/usc/42/7671.md?p=11) baseline or [consumption](/usc/42/7671.md?p=6) baseline, as applicable; and
      - (ii) the applicable percentage listed on the table contained in [subparagraph (C)](#e-2-C).
    - (C) **Relation to baseline—** On January 1 of each year listed in the following table, the [Administrator](/usc/42/7602.md?p=a) shall apply the applicable percentage, as described in [subparagraph (A)](#e-2-A):

      | Date | Percentage of [Production](/usc/42/7671.md?p=11) Baseline | Percentage of [Consumption](/usc/42/7671.md?p=6) 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](/usc/42/7602.md?p=a) shall use the quantity calculated under [subparagraph (B)](#e-2-B) to determine the quantity of allowances for the [production](/usc/42/7671.md?p=11) and [consumption](/usc/42/7671.md?p=6) 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](/usc/42/7671.md?p=11) or [consumption](/usc/42/7671.md?p=6) 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)](#e-2-D-ii-I-bb).
  - (3) **Regulations regarding production and consumption of regulated substances—** Not later than 270 days after December 27, 2020, which shall include a period of notice and opportunity for public comment, the [Administrator](/usc/42/7602.md?p=a) shall issue a final rule—
    - (A) phasing down the [production](/usc/42/7671.md?p=11) of regulated substances in the United States through an allowance [allocation](/usc/42/2021b.md?p=2) and trading program in accordance with this section; and
    - (B) phasing down the [consumption](/usc/42/7671.md?p=6) of regulated substances in the United States through an allowance [allocation](/usc/42/2021b.md?p=2) and trading program in accordance with the schedule under [paragraph (2)(C)](#e-2-C) (subject to the same exceptions and other requirements as are applicable to the phase-down of [production](/usc/42/7671.md?p=11) of regulated substances under this section).
  - (4) **Exceptions; essential uses—**
    - (A) **Feedstocks and process agents—** Except for the reporting requirements described in [subsection (d)(1)](#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—** Beginning on December 27, 2020, and subject to paragraphs [(2)](#e-2) and [(3)](#e-3) and clauses [(ii)](#e-4-B-ii) and [(iii)](#e-4-B-iii), the [Administrator](/usc/42/7602.md?p=a) 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](/usc/42/7671.md?p=11) and [consumption](/usc/42/7671.md?p=6) of a regulated substance exclusively for the use of the regulated substance in an application, if—
        - (I) no safe or technically achievable substitute will be available during the applicable period for that application; and
        - (II) the supply of the regulated substance that [manufacturers](/usc/42/7550.md?p=1) or users of the regulated substance for that application are capable of securing from chemical [manufacturers](/usc/42/7550.md?p=1), as authorized under [paragraph (2)(A)](#e-2-A), including any quantities of a regulated substance available from [production](/usc/42/7671.md?p=11) or [import](/usc/42/7671.md?p=7), is insufficient to accommodate the application.
      - (ii) **Petition—** If the [Administrator](/usc/42/7602.md?p=a) receives a petition requesting the designation of an application as an essential use under [clause (i)](#e-4-B-i), the [Administrator](/usc/42/7602.md?p=a) shall—
        - (I) not later than 180 days after the date on which the [Administrator](/usc/42/7602.md?p=a) receives the petition—
          - (aa) make the complete petition available to the public; and
          - (bb) when making the petition available to the public under [item (aa)](#e-4-B-ii-I-aa), propose and seek public comment on—
            - (AA) a determination of whether to designate the application as an essential use; and
            - (BB) if the [Administrator](/usc/42/7602.md?p=a) proposes to designate the application as an essential use, making the requisite [allocation](/usc/42/2021b.md?p=2) of allowances; and
        - (II) not later than 270 days after the date on which the [Administrator](/usc/42/7602.md?p=a) receives the petition, take final action on the petition.
      - (iii) **Limitation—** A [person](/usc/42/7602.md?p=e) receiving an [allocation](/usc/42/2021b.md?p=2) under clause [(i)](#e-4-B-i) or [(iv)](#e-4-B-iv) or as a result of a petition granted under [clause (ii)](#e-4-B-ii) may not [produce](/usc/42/7671.md?p=11) or consume a [produced](/usc/42/7671.md?p=11) quantity of regulated substances that, considering the respective exchange values of the regulated substances, exceeds the number of allowances issued under paragraphs [(2)](#e-2) and [(3)](#e-3) that are held by that [person](/usc/42/7602.md?p=e).
      - (iv) **Mandatory allocations—**
        - (I) **In general—** Notwithstanding [clause (i)](#e-4-B-i) and subject to [clause (iii)](#e-4-B-iii) and paragraphs [(2)](#e-2) and [(3)](#e-3), for the 5-year period beginning on December 27, 2020, the [Administrator](/usc/42/7602.md?p=a) shall allocate the full quantity of allowances necessary, based on projected, current, and historical trends, for the [production](/usc/42/7671.md?p=11) or [consumption](/usc/42/7671.md?p=6) of a regulated substance for the exclusive use of the regulated substance in an application solely for—
          - (aa) a propellant in metered-dose inhalers;
          - (bb) defense sprays;
          - (cc) structural composite preformed polyurethane foam for marine use and trailer use;
          - (dd) the etching of semiconductor material or wafers and the cleaning of chemical vapor deposition chambers within the semiconductor manufacturing sector;
          - (ee) mission-critical military end uses, such as armored vehicle engine and shipboard fire suppression systems and systems used in deployable and expeditionary applications; and
          - (ff) onboard aerospace fire suppression.
        - (II) **Requirement—**

        The [allocation](/usc/42/2021b.md?p=2) of allowances under [subclause (I)](#e-4-B-iv-I) shall be determined through a rulemaking.

      - (v) **Review—**
        - (I) **In general—** For each essential use application receiving an [allocation](/usc/42/2021b.md?p=2) of allowances under clause [(i)](#e-4-B-i) or [(iv)](#e-4-B-iv), the [Administrator](/usc/42/7602.md?p=a) shall review the availability of substitutes, including any quantities of the regulated substance available from reclaiming or prior [production](/usc/42/7671.md?p=11), not less frequently than once every 5 years.
        - (II) **Extension—** If, pursuant to a review under [subclause (I)](#e-4-B-v-I), the [Administrator](/usc/42/7602.md?p=a) determines, subject to notice and opportunity for public comment, that the requirements described in subclauses [(I)](#e-4-B-i-I) and [(II)](#e-4-B-i-II) of clause (i) are met, the [Administrator](/usc/42/7602.md?p=a) shall authorize the [production](/usc/42/7671.md?p=11) or [consumption](/usc/42/7671.md?p=6), 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.
  - (5) **Domestic manufacturing—** Notwithstanding [paragraph (2)(A)(i)](#e-2-A-i), the [Administrator](/usc/42/7602.md?p=a) may, by rule, authorize a [person](/usc/42/7602.md?p=e) to [produce](/usc/42/7671.md?p=11) a regulated substance in excess of the number of [production](/usc/42/7671.md?p=11) allowances held by that [person](/usc/42/7602.md?p=e), 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](/usc/42/7671.md?p=11)—
      - (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)](#j-1); and
      - (iii) would not violate [paragraph (2)(B)](#e-2-B).
- (f) **Accelerated schedule—**
  - (1) **In general—** Subject to [paragraph (4)](#f-4), the [Administrator](/usc/42/7602.md?p=a) may, only in response to a petition submitted to the [Administrator](/usc/42/7602.md?p=a) in accordance with [paragraph (3)](#f-3) and after notice and opportunity for public comment, promulgate regulations that establish a schedule for phasing down the [production](/usc/42/7671.md?p=11) or [consumption](/usc/42/7671.md?p=6) of regulated substances that is more stringent than the [production](/usc/42/7671.md?p=11) and [consumption](/usc/42/7671.md?p=6) levels of regulated substances required under [subsection (e)(2)(C)](#e-2-C).
  - (2) **Requirements—** Any regulations promulgated under this subsection—
    - (A) shall—
      - (i) apply uniformly to the [allocation](/usc/42/2021b.md?p=2) of [production](/usc/42/7671.md?p=11) and [consumption](/usc/42/7671.md?p=6) allowances for regulated substances, in accordance with [subsection (e)(3)](#e-3);
      - (ii) ensure that there will be sufficient quantities of regulated substances, including substances available from reclaiming, prior [production](/usc/42/7671.md?p=11), or prior [import](/usc/42/7671.md?p=7), to meet the needs for—
        - (I) applications that receive an [allocation](/usc/42/2021b.md?p=2) under [clause (i)](#e-4-B-i) of subsection (e)(4)(B); and
        - (II) all applications that receive a mandatory [allocation](/usc/42/2021b.md?p=2) under items (aa) through (ff) of clause (iv)(I) of that subsection; and
      - (iii) foster continued reclamation of and transition from regulated substances; and
    - (B) shall not set the level of [production](/usc/42/7671.md?p=11) allowances or [consumption](/usc/42/7671.md?p=6) allowances below the percentage of the [consumption](/usc/42/7671.md?p=6) baseline that is actually consumed during the calendar year prior to the year during which the [Administrator](/usc/42/7602.md?p=a) makes a final determination with respect to the applicable proposal described in [paragraph (3)(C)(iii)(I)](#f-3-C-iii-I).
  - (3) **Petition—**
    - (A) **In general—** A [person](/usc/42/7602.md?p=e) may petition the [Administrator](/usc/42/7602.md?p=a) to promulgate regulations for an accelerated schedule for the phase-down of [production](/usc/42/7671.md?p=11) or [consumption](/usc/42/7671.md?p=6) of regulated substances under [paragraph (1)](#f-1).
    - (B) **Requirement—** A petition submitted under [subparagraph (A)](#f-3-A) shall—
      - (i) be made at such time, in such manner, and containing such information as the [Administrator](/usc/42/7602.md?p=a) shall require; and
      - (ii) include a showing by the petitioner that there are data to support the petition.
    - (C) **Timelines—**
      - (i) **In general—** If the [Administrator](/usc/42/7602.md?p=a) receives a petition under [subparagraph (A)](#f-3-A), the [Administrator](/usc/42/7602.md?p=a) shall—
        - (I) not later than 180 days after the date on which the [Administrator](/usc/42/7602.md?p=a) receives the petition—
          - (aa) make the complete petition available to the public; and
          - (bb) when making the petition available to the public under [item (aa)](#f-3-C-i-I-aa), propose and seek public comment on the proposal of the [Administrator](/usc/42/7602.md?p=a) to grant or deny the petition; and
        - (II) not later than 270 days after the date on which the [Administrator](/usc/42/7602.md?p=a) receives the petition, take final action on the petition.
      - (ii) **Factors for determination—** In making a determination to grant or deny a petition submitted under [subparagraph (A)](#f-3-A), the [Administrator](/usc/42/7602.md?p=a) shall, to the extent practicable, factor in—
        - (I) the best available data;
        - (II) 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](/usc/42/7671.md?p=1) efficiency standards, contractor training costs, and other relevant factors, including the quantities of regulated substances available from reclaiming, prior [production](/usc/42/7671.md?p=11), or prior [import](/usc/42/7671.md?p=7);
        - (III) overall economic costs and environmental impacts, as compared to historical trends; and
        - (IV) the remaining phase-down period for regulated substances under the final rule issued under [subsection (e)(3)](#e-3), if applicable.
      - (iii) **Regulations—** After receiving public comment with respect to the proposal under [clause (i)(I)(bb)](#f-3-C-i-I-bb), if the [Administrator](/usc/42/7602.md?p=a) makes a final determination to grant a petition under [subparagraph (A)](#f-3-A), the final regulations with respect to the petition shall—
        - (I) be promulgated by not later than 1 year after the date on which the [Administrator](/usc/42/7602.md?p=a) makes the proposal to grant the petition under that clause; and
        - (II) meet the requirements of [paragraph (2)](#f-2).
    - (D) **Publication—** When the [Administrator](/usc/42/7602.md?p=a) makes a final determination to grant or deny a petition under [subparagraph (A)](#f-3-A), the [Administrator](/usc/42/7602.md?p=a) shall publish a description of the reasons for that grant or denial, including a description of the information considered under subclauses [(I)](#f-3-C-ii-I) through [(IV)](#f-3-C-ii-IV) of subparagraph (C)(ii).
    - (E) **Insufficient information—** If the [Administrator](/usc/42/7602.md?p=a) determines that the data included under [subparagraph (B)(ii)](#f-3-B-ii) in a petition are not sufficient to make a determination under this paragraph, the [Administrator](/usc/42/7602.md?p=a) shall use any authority available to the [Administrator](/usc/42/7602.md?p=a) to acquire the necessary data.
  - (4) **Date of effectiveness—** The [Administrator](/usc/42/7602.md?p=a) may not promulgate under [paragraph (1)](#f-1) a regulation for the [production](/usc/42/7671.md?p=11) or [consumption](/usc/42/7671.md?p=6) of regulated substances that is more stringent than the [production](/usc/42/7671.md?p=11) or [consumption](/usc/42/7671.md?p=6) levels required under [subsection (e)(2)(C)](#e-2-C) that takes effect before January 1, 2025.
  - (5) **Review—**
    - (A) **In general—** The [Administrator](/usc/42/7602.md?p=a) shall review the availability of substitutes for regulated substances subject to an accelerated schedule established under [paragraph (1)](#f-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](/usc/42/7671.md?p=11), or prior [import](/usc/42/7671.md?p=7), by January 1, 2026 (for the first review), by January 1, 2031 (for the second review), and at least once every 5 years thereafter.
    - (B) **Public availability—** The [Administrator](/usc/42/7602.md?p=a) shall make the results of a review conducted under [subparagraph (A)](#f-5-A) publicly available.
  - (6) **Savings provision—** Nothing in this subsection authorizes the [Administrator](/usc/42/7602.md?p=a) to promulgate regulations pursuant to this subsection that establish a schedule for phasing down the [production](/usc/42/7671.md?p=11) or [consumption](/usc/42/7671.md?p=6) of regulated substances that is less stringent than the [production](/usc/42/7671.md?p=11) and [consumption](/usc/42/7671.md?p=6) levels of regulated substances required under [subsection (e)(2)(C)](#e-2-C).
- (g) **Exchange authority—**
  - (1) **Transfers—** Not later than 270 days after December 27, 2020, which shall include a period of notice and opportunity for public comment, the [Administrator](/usc/42/7602.md?p=a) shall promulgate a final regulation that governs the transfer of allowances for the [production](/usc/42/7671.md?p=11) of regulated substances under [subsection (e)(3)(A)](#e-3-A) that uses—
    - (A) the applicable exchange values described in the table contained in [subsection (c)(1)](#c-1); or
    - (B) the exchange value described in the rule designating the substance as a regulated substance under [subsection (c)(3)](#c-3).
  - (2) **Requirements—** The final rule promulgated pursuant to [paragraph (1)](#g-1) shall—
    - (A) ensure that the transfers under this subsection will result in greater total reductions in the [production](/usc/42/7671.md?p=11) of regulated substances in each year than would occur during the year in the absence of the transfers;
    - (B) permit 2 or more [persons](/usc/42/7602.md?p=e) to transfer [production](/usc/42/7671.md?p=11) allowances if the transferor of the allowances will be subject, under the final rule, to an enforceable and quantifiable reduction in annual [production](/usc/42/7671.md?p=11) that—
      - (i) exceeds the reduction otherwise applicable to the transferor under this section;
      - (ii) exceeds the quantity of [production](/usc/42/7671.md?p=11) represented by the [production](/usc/42/7671.md?p=11) 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](/usc/42/7671.md?p=6) allowances in the same manner as is applicable under this subsection to the trading of [production](/usc/42/7671.md?p=11) 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](/usc/42/7602.md?p=a) shall promulgate regulations to control, where appropriate, any practice, process, or activity regarding the servicing, repair, [disposal](/usc/42/2021b.md?p=7), or installation of equipment (including requiring, where appropriate, that any such servicing, repair, [disposal](/usc/42/2021b.md?p=7), or installation be performed by a trained technician meeting minimum standards, as determined by the [Administrator](/usc/42/7602.md?p=a)) 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](/usc/42/7602.md?p=a) shall consider the use of authority available to the [Administrator](/usc/42/7602.md?p=a) 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](/usc/42/13641.md?p=4), except where the recovered regulated substance is sold or transferred to a new [owner](/usc/42/13641.md?p=4) solely for the purposes of being reclaimed or destroyed.
  - (3) **Coordination—** In promulgating regulations to carry out this subsection, the [Administrator](/usc/42/7602.md?p=a) may coordinate those regulations with any other regulations promulgated by the [Administrator](/usc/42/7602.md?p=a) that involve—
    - (A) the same or a similar practice, process, or activity regarding the servicing, repair, [disposal](/usc/42/2021b.md?p=7), or installation of equipment; or
    - (B) reclaiming.
  - (4) **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.
  - (5) **Small business grants—**
    - (A) **Definition of small business concern—** In this paragraph, the term “small business concern” has the same meaning as in [section 632 of title 15](/usc/15/632.md).
    - (B) **Establishment—** Subject to the availability of appropriations, the [Administrator](/usc/42/7602.md?p=a) 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)](/usc/42/7671h.md?p=b))) for recycling, recovery, or reclamation in the service or repair of [motor vehicle](/usc/42/7550.md?p=2) air conditioning systems.
    - (C) **Matching funds—** The non-Federal share of a [project](/usc/42/13641.md?p=2) carried out with a grant under this paragraph shall be not less than 25 percent.
    - (D) **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.
- (i) **Technology transitions—**
  - (1) **Authority—** Subject to the provisions of this subsection, the [Administrator](/usc/42/7602.md?p=a) 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)](#i-1), the [Administrator](/usc/42/7602.md?p=a) 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](/usc/5/chptI/ch5.md) of title 5 (commonly known as the “Negotiated Rulemaking Act of 1990”).
    - (B) **Negotiated rulemakings—** If the [Administrator](/usc/42/7602.md?p=a) negotiates a rulemaking with stakeholders using the procedure described in [subparagraph (A)](#i-2-A), the [Administrator](/usc/42/7602.md?p=a) shall, to the extent practicable, give priority to completing that rulemaking over completing rulemakings under this subsection that were not negotiated using that procedure.
    - (C) **No negotiated rulemaking—** If the [Administrator](/usc/42/7602.md?p=a) does not negotiate a rulemaking with stakeholders using the procedure described in [subparagraph (A)](#i-2-A), the [Administrator](/usc/42/7602.md?p=a) shall, before commencement of the rulemaking process for a rule under [paragraph (1)](#i-1), publish an explanation of the decision of the [Administrator](/usc/42/7602.md?p=a) to not use that procedure.
  - (3) **Petitions—**
    - (A) **In general—** A [person](/usc/42/7602.md?p=e) may petition the [Administrator](/usc/42/7602.md?p=a) to promulgate a rule under [paragraph (1)](#i-1) for the restriction on use of a regulated substance in a sector or subsector, which shall include a request that the [Administrator](/usc/42/7602.md?p=a) negotiate with stakeholders in accordance with [paragraph (2)(A)](#i-2-A).
    - (B) **Response—** The [Administrator](/usc/42/7602.md?p=a) shall grant or deny a petition under [subparagraph (A)](#i-3-A) not later than 180 days after the date of receipt of the petition.
    - (C) **Requirements—**
      - (i) **Explanation—** If the [Administrator](/usc/42/7602.md?p=a) denies a petition under [subparagraph (B)](#i-3-B), the [Administrator](/usc/42/7602.md?p=a) shall publish in the Federal Register an explanation of the denial.
      - (ii) **Final rule—** If the [Administrator](/usc/42/7602.md?p=a) grants a petition under [subparagraph (B)](#i-3-B), the [Administrator](/usc/42/7602.md?p=a) shall promulgate a final rule not later than 2 years after the date on which the [Administrator](/usc/42/7602.md?p=a) grants the petition.
      - (iii) **Publication of petitions—** Not later than 30 days after the date on which the [Administrator](/usc/42/7602.md?p=a) receives a petition under [subparagraph (A)](#i-3-A), the [Administrator](/usc/42/7602.md?p=a) shall make that petition available to the public in full.
  - (4) **Factors for determination—** In carrying out a rulemaking using the procedure described in [paragraph (2)](#i-2) or making a determination to grant or deny a petition submitted under [paragraph (3)](#i-3), the [Administrator](/usc/42/7602.md?p=a) shall, to the extent practicable, factor in—
    - (A) the best available data;
    - (B) 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](/usc/42/7671.md?p=1) efficiency standards, contractor training costs, and other relevant factors, including the quantities of regulated substances available from reclaiming, prior [production](/usc/42/7671.md?p=11), or prior [import](/usc/42/7671.md?p=7);
    - (C) overall economic costs and environmental impacts, as compared to historical trends; and
    - (D) the remaining phase-down period for regulated substances under the final rule issued under [subsection (e)(3)](#e-3), if applicable.
  - (5) **Evaluation—** In carrying out this subsection, the [Administrator](/usc/42/7602.md?p=a) shall—
    - (A) 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
    - (B) make the evaluation under [subparagraph (A)](#i-5-A) available to the public, including the factors associated with the safety of those substitutes.
  - (6) **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](/usc/42/7602.md?p=a) promulgates the applicable rule under this subsection.
  - (7) **Applicability—**
    - (A) **Definition of retrofit—** In this paragraph, the term “retrofit” means to upgrade existing equipment where the regulated substance is changed, which—
      - (i) includes the conversion of equipment to achieve system compatibility; and
      - (ii) may include changes in lubricants, gaskets, filters, driers, valves, o-rings, or equipment components for that purpose.
    - (B) **Applicability of rules—** A rule promulgated under this subsection shall not apply to—
      - (i) an essential use under clause [(i)](#e-4-B-i) or [(iv)](#e-4-B-iv) of subsection (e)(4)(B), including any use for which the [production](/usc/42/7671.md?p=11) or [consumption](/usc/42/7671.md?p=6) of the regulated substance is extended under [clause (v)(II)](#e-4-B-v-II) of that subsection; or
      - (ii) except for a retrofit application, equipment in existence in a sector or subsector before December 27, 2020.
- (j) **International cooperation—**
  - (1) **In general—** Subject to [paragraph (2)](#j-2), no [person](/usc/42/7602.md?p=e) subject to the requirements of this section shall trade or transfer a [production](/usc/42/7671.md?p=11) allowance or, after January 1, 2033, export a regulated substance to a [person](/usc/42/7602.md?p=e) in a foreign country that, as determined by the [Administrator](/usc/42/7602.md?p=a), has not enacted or otherwise established within a reasonable timeframe after December 27, 2020, the same or similar requirements or otherwise undertaken commitments regarding the [production](/usc/42/7671.md?p=11) and [consumption](/usc/42/7671.md?p=6) of regulated substances as are contained in this section.
  - (2) **Transfers—** Pursuant to [paragraph (1)](#j-1), a [person](/usc/42/7602.md?p=e) in the United States may engage in a trade or transfer of a [production](/usc/42/7671.md?p=11) allowance—
    - (A) to a [person](/usc/42/7602.md?p=e) in a foreign country if, at the time of the transfer, the [Administrator](/usc/42/7602.md?p=a) revises the number of allowances for [production](/usc/42/7671.md?p=11) under [subsection (e)(2)](#e-2), as applicable, for the United States such that the aggregate national [production](/usc/42/7671.md?p=11) of the regulated substance to be traded under the revised [production](/usc/42/7671.md?p=11) limits is equal to the least of—
      - (i) the maximum [production](/usc/42/7671.md?p=11) level permitted for the applicable regulated substance in the year of the transfer under this section, less the [production](/usc/42/7671.md?p=11) allowances transferred;
      - (ii) the maximum [production](/usc/42/7671.md?p=11) level permitted for the applicable regulated substances in the transfer year under applicable law, less the [production](/usc/42/7671.md?p=11) allowances transferred; and
      - (iii) the average of the actual national [production](/usc/42/7671.md?p=11) level of the applicable regulated substances for the 3-year period ending on the date of the transfer, less the [production](/usc/42/7671.md?p=11) allowances transferred; or
    - (B) from a [person](/usc/42/7602.md?p=e) in a foreign country if, at the time of the trade or transfer, the [Administrator](/usc/42/7602.md?p=a) finds that the foreign country has revised the domestic [production](/usc/42/7671.md?p=11) limits of the regulated substance in the same manner as provided with respect to transfers by a [person](/usc/42/7602.md?p=e) in United[^2] [States](/usc/42/7602.md?p=d) under this subsection.
  - (3) **Effect of transfers on production limits—** The [Administrator](/usc/42/7602.md?p=a) may—
    - (A) reduce the [production](/usc/42/7671.md?p=11) limits established under [subsection (e)(2)(B)](#e-2-B) as required as a prerequisite to a transfer described in [paragraph (2)(A)](#j-2-A); or
    - (B) increase the [production](/usc/42/7671.md?p=11) limits established under [subsection (e)(2)(B)](#e-2-B) to reflect [production](/usc/42/7671.md?p=11) allowances acquired under a trade or transfer described in [paragraph (2)(B)](#j-2-B).
  - (4) **Regulations—** The [Administrator](/usc/42/7602.md?p=a) shall—
    - (A) not later than 1 year after December 27, 2020, 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)](#j-4-A).
- (k) **Relationship to other law—**
  - (1) **Implementation—**
    - (A) **Rulemakings—** The [Administrator](/usc/42/7602.md?p=a) may promulgate such regulations as are necessary to carry out the functions of the [Administrator](/usc/42/7602.md?p=a) under this section.
    - (B) **Delegation—** The [Administrator](/usc/42/7602.md?p=a) may delegate to any officer or employee of the Environmental Protection [Agency](/usc/42/8262.md?p=1) such of the powers and duties of the [Administrator](/usc/42/7602.md?p=a) under this section as the [Administrator](/usc/42/7602.md?p=a) determines to be appropriate.
    - (C) **Clean Air Act—** Sections 113, 114, 304, and 307 of the Clean Air Act ([42 U.S.C. 7413](/usc/42/7413.md), 7414, 7604, 7607) shall apply to this section and any rule, rulemaking, or regulation promulgated by the [Administrator](/usc/42/7602.md?p=a) pursuant to this section as though this section were expressly included in title VI of that Act ([42 U.S.C. 7671](/usc/42/7671.md) et seq.).
  - (2) **Preemption—**
    - (A) **In general—** Subject to [subparagraph (B)](#k-2-B), during the 5-year period beginning on December 27, 2020, and with respect to an exclusive use for which a mandatory [allocation](/usc/42/2021b.md?p=2) of allowances is provided under [subsection (e)(4)(B)(iv)(I)](#e-4-B-iv-I), no [State](/usc/42/7602.md?p=d) or political subdivision of a [State](/usc/42/7602.md?p=d) may enforce a statute or administrative action restricting the management or use of a regulated substance within that exclusive use.
    - (B) **Extension—**
      - (i) **In general—** Subject to [clause (ii)](#k-2-B-ii), if, pursuant to [subclause (I)](#e-4-B-v-I) of subsection (e)(4)(B)(v), the [Administrator](/usc/42/7602.md?p=a) authorizes an additional period under [subclause (II)](#e-4-B-v-II) of that subsection for the [production](/usc/42/7671.md?p=11) or [consumption](/usc/42/7671.md?p=6) of a regulated substance for an exclusive use described in [subparagraph (A)](#k-2-A), no [State](/usc/42/7602.md?p=d) or political subdivision of a [State](/usc/42/7602.md?p=d) 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.
      - (ii) **Limitation—** The period for which the limitation under [clause (i)](#k-2-B-i) applies shall not exceed 5 years from the date on which the period described in [subparagraph (A)](#k-2-A) ends.

## Footnotes

[^1]: So in original. Probably means “this section”.
[^2]: So in original. Probably should be preceded by “the”.

## Source credit

(Pub. L. 116–260, div. S, § 103, Dec. 27, 2020, 134 Stat. 2255.)

## Notes

### Editorial Notes

### References in Text

The Clean Air Act, referred to in subsecs. (d)(1)(B)(i) and (k)(1)(C), is act July 14, 1955, ch. 360, 69 Stat. 322, which is classified generally to this chapter. Title VI of the Act is classified generally to subchapter VI (§ 7671 et seq.) of this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 7401 of this title and Tables.

### Codification

Section was enacted as the American Innovation and Manufacturing Act of 2020, and also as part of the Consolidated Appropriations Act, 2021, and not as part of the Clean Air Act which comprises this chapter.