American Innovation and Manufacturing Act of 2019

II 116TH CONGRESS 1ST SESSION S. 2754 To create jobs and drive innovation and economic growth in the United States by supporting and promoting the manufacture of next-generation technologies, including refrigerants, solvents, fire suppressants, foam blowing agents, aerosols, and propellants. IN THE SENATE OF THE UNITED STATES OCTOBER 30, 2019 Mr. KENNEDY (for himself, Mr. CARPER, Mr. CASSIDY, Mr. COONS, Ms. COL- LINS, Mr. WHITEHOUSE, Mr. WICKER, Mr. MERKLEY, Mr. GRAHAM, Mr. BOOKER, Mr. YOUNG, Mr. MARKEY, Mr. BOOZMAN, Mr. BLUMENTHAL, Mr. ALEXANDER, and Mr. CARDIN) introduced the following bill; which was read twice and referred to the Committee on Environment and Public Works A BILL To create jobs and drive innovation and economic growth in the United States by supporting and promoting the manufacture of next-generation technologies, including refrigerants, solvents, fire suppressants, foam blowing agents, aerosols, and propellants. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘American Innovation 4 and Manufacturing Act of 2019’’. 5 VerDate Sep 11 2014 20:07 Nov 02, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S2754.IS S2754 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 2754 IS SEC. 2. FINDINGS; SENSE OF CONGRESS. 1 (a) FINDINGS.—Congress finds that— 2 (1) industries in the United States that use and 3 produce fluorocarbons— 4 (A) contribute more than 5 $158,000,000,000 annually in goods and serv- 6 ices to the economy of the United States; and 7 (B) provide employment to more than 8 700,000 individuals, with an industry-wide pay- 9 roll of more than $32,000,000,000; 10 (2) the support and promotion of the techno- 11 logical leadership of the United States in fluoro- 12 carbon production and related products, equipment, 13 and other uses provided by this Act is expected— 14 (A) to create approximately 33,000 new 15 manufacturing jobs in the United States; and 16 (B) to add approximately $12,500,000,000 17 per year to the economy of the United States; 18 (3) supporting and promoting the technological 19 leadership of the United States in fluorocarbon pro- 20 duction and related products, equipment, and other 21 uses also creates a significant new export advantage 22 for manufacturers of fluorinated compounds and re- 23 lated products and equipment in the United States; 24 (4) the new markets for fluorinated products 25 and equipment created by this Act are expected to 26 VerDate Sep 11 2014 20:07 Nov 02, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2754.IS S2754 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 2754 IS increase the share of the United States of the global 1 fluorocarbon product and equipment market by 25 2 percent (to 9 percent from 7.2 percent); and 3 (5) this Act incentivizes the investment of ap- 4 proximately $5,000,000,000 in the United States 5 through fiscal year 2025 to exploit the new markets 6 for fluorinated products and equipment created by 7 this Act. 8 (b) SENSE OF CONGRESS.—It is the sense of Con- 9 gress that the Administrator should provide for a safe 10 hydrofluorocarbon transition by ensuring that heating, 11 ventilation, air conditioning, and refrigeration practi- 12 tioners are positioned to comply with safe servicing, re- 13 pair, disposal, or installation procedures. 14 SEC. 3. DEFINITIONS. 15 In this Act: 16 (1) ADMINISTRATOR.—The term ‘‘Adminis- 17 trator’’ means the Administrator of the Environ- 18 mental Protection Agency. 19 (2) ALLOWANCE.—The term ‘‘allowance’’ 20 means a limited authorization for the production or 21 consumption of a regulated substance established 22 under section 6. 23 VerDate Sep 11 2014 20:07 Nov 02, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S2754.IS S2754 pamtmann on DSKBC07HB2PROD with BILLS 4 •S 2754 IS (3) CONSUMPTION.—The term ‘‘consumption’’, 1 with respect to a regulated substance, means a 2 quantity equal to the difference between— 3 (A) a quantity equal to the sum of— 4 (i) the quantity of that regulated sub- 5 stance produced in the United States; and 6 (ii) the quantity of the regulated sub- 7 stance imported into the United States; 8 and 9 (B) the quantity of the regulated substance 10 exported from the United States. 11 (4) CONSUMPTION BASELINE.—The term ‘‘con- 12 sumption baseline’’ means the baseline established 13 for the consumption of regulated substances under 14 section 6(a)(3). 15 (5) EXCHANGE VALUE.—The term ‘‘exchange 16 value’’ means the value assigned to a regulated sub- 17 stance in accordance with sections 4 and 6, as appli- 18 cable. 19 (6) IMPORT.—The term ‘‘import’’ means to 20 land on, bring into, or introduce into, or attempt to 21 land on, bring into, or introduce into, any place sub- 22 ject to the jurisdiction of the United States, regard- 23 less of whether that landing, bringing, or introduc- 24 VerDate Sep 11 2014 20:07 Nov 02, 2019 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S2754.IS S2754 pamtmann on DSKBC07HB2PROD with BILLS 5 •S 2754 IS tion constitutes an importation within the meaning 1 of the customs laws of the United States. 2 (7) PRODUCE.— 3 (A) IN GENERAL.—The term ‘‘produce’’ 4 means the manufacture of a regulated sub- 5 stance from a raw material or feedstock chem- 6 ical (but not including the destruction of a reg- 7 ulated substance by a technology approved by 8 the Administrator). 9 (B) EXCLUSIONS.—The term ‘‘produce’’ 10 does not include— 11 (i) the manufacture of a regulated 12 substance that is used and entirely con- 13 sumed (except for trace quantities) in the 14 manufacture of another chemical; or 15 (ii) the reuse or recycling of a regu- 16 lated substance. 17 (8) PRODUCTION BASELINE.—The term ‘‘pro- 18 duction baseline’’ means the baseline established for 19 the production of regulated substances under section 20 6(a)(2). 21 (9) RECLAIM.—The term ‘‘reclaim’’ means— 22 (A) the reprocessing of a recovered regu- 23 lated substance to at least the purity described 24 in standard 700–2016 of the Air-Conditioning, 25 VerDate Sep 11 2014 20:07 Nov 02, 2019 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S2754.IS S2754 pamtmann on DSKBC07HB2PROD with BILLS 6 •S 2754 IS Heating, and Refrigeration Institute (or an ap- 1 propriate successor standard adopted by the 2 Administrator); and 3 (B) the verification of the purity of that 4 regulated substance using, at a minimum, the 5 analytical methodology described in the stand- 6 ard referred to in subparagraph (A). 7 (10) RECOVER.—The term ‘‘recover’’ means the 8 process by which a regulated substance is— 9 (A) removed, in any condition, from equip- 10 ment; and 11 (B) stored in an external container, with 12 or without testing or processing the regulated 13 substance. 14 (11) REGULATED SUBSTANCE.—The term ‘‘reg- 15 ulated substance’’ means— 16 (A) a substance listed in the table con- 17 tained in section 4(a); and 18 (B) a substance included as a regulated 19 substance by the Administrator under section 20 4(c). 21 SEC. 4. LISTING OF REGULATED SUBSTANCES. 22 (a) LIST OF REGULATED SUBSTANCES.—Each of the 23 following substances, and any isomers of such a substance, 24 shall be a regulated substance: 25 VerDate Sep 11 2014 20:07 Nov 02, 2019 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S2754.IS S2754 pamtmann on DSKBC07HB2PROD with BILLS 7 •S 2754 IS 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. (b) REVIEW.—The Administrator may— 1 (1) review the exchange values listed in the 2 table contained in subsection (a) on a periodic basis; 3 and 4 (2) subject to notice and opportunity for public 5 comment, adjust the exchange values solely on the 6 basis of— 7 (A) publicly available, peer-reviewed sci- 8 entific data; and 9 VerDate Sep 11 2014 20:07 Nov 02, 2019 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S2754.IS S2754 pamtmann on DSKBC07HB2PROD with BILLS 8 •S 2754 IS (B) other information consistent with wide- 1 ly used or commonly accepted existing exchange 2 values. 3 (c) OTHER REGULATED SUBSTANCES.— 4 (1) IN GENERAL.—Subject to notice and oppor- 5 tunity for public comment, the Administrator may 6 designate a substance not included in the table con- 7 tained in subsection (a) as a regulated substance 8 if— 9 (A) the substance— 10 (i) is a chemical substance that is a 11 saturated hydrofluorocarbon; and 12 (ii) has an exchange value, as deter- 13 mined by the Administrator in accordance 14 with the basis described in subsection 15 (b)(2), of greater than 53; and 16 (B) the designation of the substance as a 17 regulated substance would be consistent with 18 the purposes of this Act. 19 (2) SAVINGS PROVISION.—Nothing in this sub- 20 section authorizes the Administrator to designate as 21 a regulated substance a blend of substances that in- 22 cludes a saturated hydrofluorocarbon for purposes of 23 phasing down production or consumption of regu- 24 lated substances under section 6, even if the satu- 25 VerDate Sep 11 2014 20:07 Nov 02, 2019 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S2754.IS S2754 pamtmann on DSKBC07HB2PROD with BILLS 9 •S 2754 IS rated hydrofluorocarbon is, or may be, designated as 1 a regulated substance. 2 SEC. 5. MONITORING AND REPORTING REQUIREMENTS. 3 (a) PRODUCTION, IMPORT, AND EXPORT LEVEL RE- 4 PORTS.— 5 (1) IN GENERAL.—On a periodic basis, to be 6 determined by the Administrator, but not less fre- 7 quently than annually, each person who, within the 8 applicable reporting period, produces, imports, ex- 9 ports, destroys, transforms, uses as a process agent, 10 or reclaims a regulated substance shall submit to the 11 Administrator a report that describes, as applicable, 12 the quantity of the regulated substance that the per- 13 son— 14 (A) produced, imported, and exported; 15 (B) reclaimed; 16 (C) destroyed by a technology approved by 17 the Administrator; 18 (D) used and entirely consumed (except for 19 trace quantities) in the manufacture of another 20 chemical; or 21 (E) used as a process agent. 22 (2) REQUIREMENTS.— 23 (A) SIGNED AND ATTESTED.—The report 24 under paragraph (1) shall be signed and at- 25 VerDate Sep 11 2014 20:07 Nov 02, 2019 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S2754.IS S2754 pamtmann on DSKBC07HB2PROD with BILLS 10 •S 2754 IS tested by a responsible officer (within the mean- 1 ing of the Clean Air Act (42 U.S.C. 7401 et 2 seq.)). 3 (B) NO FURTHER REPORTS REQUIRED.—A 4 report under paragraph (1) shall not be re- 5 quired from a person if the person— 6 (i) permanently ceases production, im- 7 portation, exportation, destruction, trans- 8 formation, use as a process agent, or rec- 9 lamation of all regulated substances; and 10 (ii) notifies the Administrator in writ- 11 ing that the requirement under clause (i) 12 has been met. 13 (C) BASELINE PERIOD.—Each report 14 under paragraph (1) shall include, as applica- 15 ble, the information described in that paragraph 16 for the baseline period of calendar years 2011 17 through 2013. 18 (b) COORDINATION.—The Administrator may allow 19 any person subject to the requirements of subsection 20 (a)(1) to combine and include the information required to 21 be reported under that subsection with any other related 22 information that the person is required to report to the 23 Administrator. 24 VerDate Sep 11 2014 20:07 Nov 02, 2019 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S2754.IS S2754 pamtmann on DSKBC07HB2PROD with BILLS 11 •S 2754 IS SEC. 6. PHASE-DOWN OF PRODUCTION AND CONSUMPTION 1 OF REGULATED SUBSTANCES. 2 (a) BASELINES.— 3 (1) IN GENERAL.—Subject to paragraph (4), 4 the Administrator shall establish for the phase-down 5 of regulated substances— 6 (A) a production baseline for the produc- 7 tion of all regulated substances in the United 8 States, as described in paragraph (2); and 9 (B) a consumption baseline for the con- 10 sumption of all regulated substances in the 11 United States, as described in paragraph (3). 12 (2) PRODUCTION BASELINE DESCRIBED.—The 13 production baseline referred to in paragraph (1)(A) 14 is the quantity equal to the sum of— 15 (A) the average annual quantity of all reg- 16 ulated substances produced in the United 17 States during the period— 18 (i) beginning on January 1, 2011; and 19 (ii) ending on December 31, 2013; 20 and 21 (B) the quantity equal to the sum of— 22 (i) 15 percent of the production level 23 of hydrochlorofluorocarbons in calendar 24 year 1989; and 25 VerDate Sep 11 2014 20:07 Nov 02, 2019 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S2754.IS S2754 pamtmann on DSKBC07HB2PROD with BILLS 12 •S 2754 IS (ii) 0.42 percent of the production 1 level of chlorofluorocarbons in calendar 2 year 1989. 3 (3) CONSUMPTION BASELINE DESCRIBED.—The 4 consumption baseline referred to in paragraph 5 (1)(B) is the quantity equal to the sum of— 6 (A) the average annual quantity of all reg- 7 ulated substances consumed in the United 8 States during the period— 9 (i) beginning on January 1, 2011; and 10 (ii) ending on December 31, 2013; 11 and 12 (B) the quantity equal to the sum of— 13 (i) 15 percent of the consumption 14 level of hydrochlorofluorocarbons in cal- 15 endar year 1989; and 16 (ii) 0.42 percent of the consumption 17 level of chlorofluorocarbons in calendar 18 year 1989. 19 (4) EXCHANGE VALUES.— 20 (A) IN GENERAL.—For purposes of para- 21 graphs (2) and (3), the Administrator shall use 22 the following exchange values for 23 hydrochlorofluorocarbons and chlorofluoro- 24 carbons: 25 VerDate Sep 11 2014 20:07 Nov 02, 2019 Jkt 099200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S2754.IS S2754 pamtmann on DSKBC07HB2PROD with BILLS 13 •S 2754 IS 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. (B) REVIEW.—The Administrator may— 1 (i) review the exchange values listed in 2 the [Text truncated for display. Full text available on Congress.gov.]