Sec. 6. Phase-down of production and consumption of regulated substances
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Subject to paragraph (4), 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 paragraph (2); and a consumption baseline for the consumption of all regulated substances in the United States, as described in paragraph (3). The production baseline referred to in paragraph (1)(A) 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.
The consumption baseline referred to in paragraph (1)(B) 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. For purposes of paragraphs
(2)and (3), the Administrator shall use the following exchange values for hydrochlorofluorocarbons and chlorofluoro- carbons: Table 2 Chemical Name Common Name Exchange Value CHFC1 2 HCFC–21 151 CHF 2 C1 HCFC–22 1810 C 2 HF 3 C1 2 HCFC–123 77 C 2 HF 4 C1 HCFC–124 609 CH 3 CFC1 2 HCFC–141b 725 CH 3 CF 2 C1 HCFC–142b 2310 CF 3 CF 2 CHC1 2 HCFC–225ca 122 CF 2 C1CF 2 CHC1F HCFC–225cb 595 Table 3 Chemical Name Common Name Exchange Value CFC1 3 CFC–11 4750 CF 2 C1 2 CFC–12 10900 C 2 F 3 C1 3 CFC–113 6130 C 2 F 4 C1 2 CFC–114 10000 C 2 F 5 C1 CFC–115 7370. The Administrator may— review the exchange values listed in the tables contained in subsection
(a)on a periodic basis; and subject to notice and opportunity for public comment, adjust the exchange values solely on the basis of— publicly available, peer- reviewed scientific data; and other information consistent with widely used or commonly accepted existing exchange values. During the period beginning on January 1 of each year listed in the table contained in paragraph
(3)and ending on December 31 of the year before the next year listed on that table, except as otherwise permitted under this Act, no person shall— produce a quantity of a regulated substance without a corresponding quantity of production allowances, except as provided in subsection (e); or consume a quantity of a regulated substance without a corresponding quantity of consumption allowances. For each year listed on the table contained in paragraph (3), 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 paragraph (3). On January 1 of each year listed in the following table, the Administrator shall apply the applicable percentage, as described in paragraph (1): Date Percentage of Production Baseline 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. Not later than October 1 of each calendar year, the Administrator shall use the quantity calculated under paragraph
(2)to determine the quantity of allowances for the production and consumption of regulated substances that may be used for the following calendar year. An allowance allocated under this Act— does not constitute a property right; and is a limited authorization for the production or consumption of a regulated substance under this Act. Nothing in this Act or in any other provision of law limits the authority of the United States to terminate or limit an authorization described in clause (i)(II). Not later than 270 days after the date of enactment of this Act, 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 Act; 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 subsection (b)(3) (subject to the same exceptions and other requirements as are applicable to the phase-down of production of regulated substances under this Act). Except for the reporting requirements described in section 5(a), this Act 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. Not earlier than January 1, 2034, the Administrator may, after notice and opportunity for public comment, authorize the production or consumption of a regulated substance for a period of not more than 5 years in a quantity in excess of the quantities authorized under subsection (b)(1) for the exclusive use of the regulated substance in an application with respect to which the Administrator determines that— no substitute will be available during the applicable period for that application, considering technological achievability, commercial demands, safety, and other relevant factors; and the total supply of the regulated substance authorized under subsection (b)(1), including any quantities of a regulated substance available from reclaiming, prior production, or prior import, is insufficient to accommodate the application. No person receiving an authorization under subparagraph
(A)may, on an annual basis, produce or consume a quantity of a regulated substance that is greater than 10 percent of the quantity that the person produced or consumed to contribute to the production baseline or the consumption baseline, as applicable. For each application for which the Administrator has authorized the production or consumption, as applicable, of a regulated substance under subparagraph (A), the Administrator shall review the availability of substitutes, including any quantities of the regulated substance available from reclaiming or prior production, not less frequently than once every 5 years, considering technological achievability, commercial demands, safety, and other relevant factors. If the Administrator determines, subject to notice and opportunity for public comment, that no substitute will be available for an application for which the Administrator granted a waiver under subparagraph
(A)during a subsequent period, the Administrator may authorize the production or consumption, as applicable, of any regulated substance used in the application for not more than an additional 5 years in a quantity in excess of the quantity authorized under subsection (b)(1) for exclusive use in the application. Notwithstanding subsection (b)(1)(A), the Administrator may authorize a person to produce a regulated substance in excess of the number of production allowances held by that person, subject to the conditions that— 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 section 11(a); and would not violate subsection (b)(2).