American Innovation and Manufacturing Leadership Act of 2020

I 116TH CONGRESS 2D SESSION H. R. 5544 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, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JANUARY 7, 2020 Mr. TONKO (for himself, Mr. OLSON, Mr. PETERS, and Ms. STEFANIK) intro- duced the following bill; which was referred to the Committee on Energy and Commerce 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, and for other purposes. 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 Leadership Act of 2020’’. 5 SEC. 2. DEFINITIONS. 6 In this Act: 7 VerDate Sep 11 2014 02:11 Jan 08, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H5544.IH H5544 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 5544 IH (1) ADMINISTRATOR.—The term ‘‘Adminis- 1 trator’’ means the Administrator of the Environ- 2 mental Protection Agency. 3 (2) ALLOWANCE.—The term ‘‘allowance’’ 4 means a limited authorization for the production or 5 the consumption, as applicable, of a regulated sub- 6 stance in accordance with this Act. 7 (3) CONSUMPTION.—The term ‘‘consumption’’ 8 means, with respect to any regulated substance, the 9 amount of that regulated substance produced in the 10 United States, plus the amount imported, minus the 11 amount exported. 12 (4) CONSUMPTION BASELINE.—The term ‘‘con- 13 sumption baseline’’ means the baseline established 14 for consumption of regulated substances under sec- 15 tion 5(a)(2). 16 (5) DESTROY.—The term ‘‘destroy’’ means de- 17 struction by process or technology as defined by reg- 18 ulation by the Administrator. 19 (6) EXCHANGE VALUE.—The term ‘‘exchange 20 value’’ means, for each regulated substance and each 21 substance referenced in paragraph (1)(B), (1)(C), 22 (2)(B), or (2)(C) of section 5(a), the value by which 23 the mass of such substance shall be multiplied for 24 purposes of calculations under this Act. 25 VerDate Sep 11 2014 02:11 Jan 08, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5544.IH H5544 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 5544 IH (7) EXPORT.—The term ‘‘export’’ means the 1 transport of a regulated substance from any place 2 subject to the jurisdiction of the United States to 3 any place not subject to the jurisdiction of the 4 United States. 5 (8) IMPORT.—The term ‘‘import’’ means to 6 land on, bring into, or introduce into, or attempt to 7 land on, bring into, or introduce into, any place sub- 8 ject to the jurisdiction of the United States, whether 9 or not such landing, bringing, or introduction con- 10 stitutes an importation within the meaning of the 11 customs laws of the United States. 12 (9) PERSON.—The term ‘‘person’’ has the 13 meaning given to such term in section 302 of the 14 Clean Air Act (42 U.S.C. 7602). 15 (10) PRODUCE, PRODUCED, AND PRODUC- 16 TION.—The terms ‘‘produce’’, ‘‘produced’’, and 17 ‘‘production’’ refer to the manufacture in the United 18 States of a regulated substance from any raw mate- 19 rial or feedstock chemical, but such terms do not in- 20 clude— 21 (A) the manufacture of a regulated sub- 22 stance that is used and entirely consumed (ex- 23 cept for trace quantities) in the manufacture of 24 other chemicals; or 25 VerDate Sep 11 2014 02:11 Jan 08, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5544.IH H5544 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 5544 IH (B) the reuse or recycling of a regulated 1 substance. 2 (11) PRODUCTION BASELINE.—The term ‘‘pro- 3 duction baseline’’ means the baseline established for 4 production of regulated substances under section 5 5(a)(1). 6 (12) RECLAIM, RECLAIMED, AND RECLAIM- 7 ING.—The terms ‘‘reclaim’’, ‘‘reclaimed’’, and ‘‘re- 8 claiming’’ mean the reprocessing of a recovered reg- 9 ulated substance to, at a minimum, the purity speci- 10 fied by and verified in accordance with the Air-Con- 11 ditioning, Heating, and Refrigeration Institute 12 (AHRI) Standard 700–2016 (or an appropriate suc- 13 cessor standard adopted by the Administrator). 14 (13) RECOVER AND RECOVERED.—The terms 15 ‘‘recover’’ and ‘‘recovered’’ mean the removal of a 16 regulated substance in any condition from equipment 17 and the storage of such regulated substance in an 18 external container without necessarily testing or 19 processing such regulated substance in any way. 20 (14) REGULATED SUBSTANCE.—The term ‘‘reg- 21 ulated substance’’ means a substance on the list 22 published pursuant to section 3. 23 VerDate Sep 11 2014 02:11 Jan 08, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H5544.IH H5544 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 5544 IH (15) UNITED STATES.—The term ‘‘United 1 States’’ means any place subject to the jurisdiction 2 of the United States. 3 SEC. 3. LISTING OF REGULATED SUBSTANCES. 4 (a) LIST OF REGULATED SUBSTANCES.—The Ad- 5 ministrator shall publish in the Federal Register a list of 6 regulated substances, listed by chemical name and com- 7 mon name. Not later than 90 days after the date of enact- 8 ment of this Act, the Administrator shall publish in the 9 Federal Register the initial such list. The initial list under 10 this subsection shall contain the following: 11 Table 1 Chemical Name Common Name Exchange Value CHF2 CHF2 HFC-134 1100 CH2FCF3 HFC-134a 1430 CH2FCHF2 HFC143 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 VerDate Sep 11 2014 02:11 Jan 08, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H5544.IH H5544 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 5544 IH Table 1—Continued Chemical Name Common Name Exchange Value CH3CHF2 HFC-152a 124 CHF3 HFC-23 14800 (b) REQUIREMENTS.—The list required under sub- 1 section (a) shall include— 2 (1) any isomer of any such regulated substance; 3 and 4 (2) the exchange value of each regulated sub- 5 stance, as set forth in table 1 of this section or, for 6 additional regulated substances listed pursuant to 7 subsection (c), as determined by the Administrator 8 pursuant to the requirements of that subsection. 9 (c) ADDITIONAL REGULATED SUBSTANCES.—The 10 Administrator may, by regulation, add a substance to the 11 list published under subsection (a) if such substance— 12 (1) is a saturated hydrofluorocarbon; and 13 (2) has an exchange value, as determined by 14 the Administrator on the basis of widely used or 15 commonly accepted credible current scientific infor- 16 mation relating to infrared absorption and kinetic 17 rate constants, of not less than 53. 18 (d) SAVINGS PROVISION.—Nothing in this section au- 19 thorizes the Administrator to add to the list under sub- 20 section (a) as a regulated substance a blend of substances 21 VerDate Sep 11 2014 02:11 Jan 08, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H5544.IH H5544 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 5544 IH even if such blend includes a saturated hydrofluorocarbon 1 that is or may be itself a regulated substance. 2 SEC. 4. MONITORING AND REPORTING REQUIREMENTS. 3 (a) REPORTS.— 4 (1) IN GENERAL.—On a periodic basis to be de- 5 termined by the Administrator, but which shall be 6 not less than annually, each person who produced, 7 imported, exported, reclaimed, destroyed, used and 8 entirely consumed (except for trace quantities) in 9 the manufacture of other chemicals, or used as a 10 process agent a regulated substance shall submit a 11 report to the Administrator setting forth the amount 12 of each such substance that such person during the 13 preceding reporting period— 14 (A) produced; 15 (B) imported; 16 (C) exported; 17 (D) reclaimed; 18 (E) destroyed; 19 (F) used and entirely consumed (except for 20 trace quantities) in the manufacture of other 21 chemicals; or 22 (G) used as a process agent. 23 (2) ATTESTATION.—Each report submitted 24 under subsection (a) shall be signed and attested by 25 VerDate Sep 11 2014 02:11 Jan 08, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H5544.IH H5544 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 5544 IH a responsible officer (as such term is used in section 1 603(b) of the Clean Air Act (42 U.S.C. 7671b(b)). 2 (b) CESSATION OF REPORTING REQUIREMENT.—If a 3 person subject to subsection (a)(1) permanently ceases 4 production, importation, exportation, reclaiming, destruc- 5 tion, use and entire consumption (except for trace quan- 6 tities), or process agent use of a regulated substance, such 7 person shall— 8 (1) submit a report under such subsection for 9 the reporting period in which such cessation occurs; 10 (2) notify the Administrator of such cessation 11 prior to the end of such reporting period; and 12 (3) not be subject to such subsection with re- 13 spect to such regulated substance for subsequent re- 14 porting periods. 15 (c) BASELINE REPORTS.— 16 (1) INITIAL REPORT.—Each person reporting 17 pursuant to subsection (a)(1) shall include in the 18 first required such report, in addition to the infor- 19 mation required by subsection (a)(1) to be reported 20 for the applicable reporting period— 21 (A) the amount of each regulated sub- 22 stance, in each of calendar years 2011 through 23 2013, produced, imported, exported, reclaimed, 24 destroyed, used and entirely consumed (except 25 VerDate Sep 11 2014 02:11 Jan 08, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H5544.IH H5544 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 5544 IH for trace quantities) in the manufacture of 1 other chemicals, or used as a process agent; 2 (B) the amount of hydrochlorofluorocar- 3 bons that such person produced, imported, and 4 exported in 1989; and 5 (C) the amount of chlorofluorocarbons that 6 such person produced, imported, and exported 7 in 1989. 8 (2) ADDITIONAL SUBSTANCES.—In the case of 9 a substance added to the list of regulated substances 10 pursuant to section 3(c), each person who produced, 11 imported, exported, reclaimed, destroyed, used and 12 entirely consumed (except for trace quantities) in 13 the manufacture of other chemicals, or used as a 14 process agent, such regulated substance, shall sub- 15 mit to the Administrator, not later than 180 days 16 after the date on which such substance is added to 17 the list, a report setting forth the amount of the 18 substance that such person produced, imported, ex- 19 ported, reclaimed, destroyed, used and entirely con- 20 sumed (except for trace quantities) in the manufac- 21 ture of other chemicals, or used as a process agent 22 in— 23 (A) each of calendar years 2011 through 24 2013; and 25 VerDate Sep 11 2014 02:11 Jan 08, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H5544.IH H5544 kjohnson on DSK79L0C42PROD with BILLS 10 •HR 5544 IH (B) the calendar year in which this Act is 1 enacted and each subsequent calendar year, if 2 required by the Administrator in a regulation 3 adding a substance to the list of regulated sub- 4 stances. 5 (d) COORDINATION.—To the extent consistent with 6 subsections (a) through (c), the Administrator may, by 7 regulation, allow any person subject to the requirements 8 of subsection (a)(1) to combine and include the informa- 9 tion required to be reported under that subsection with 10 any other related information that the person is required 11 to report to the Administrator. 12 (e) REGULATIONS.—The Administrator shall promul- 13 gate regulations to implement this section. Not later than 14 270 days after the date of enactment of this Act, the Ad- 15 ministrator shall promulgate such final regulations as may 16 be necessary pursuant to the preceding sentence. 17 SEC. 5. PHASEDOWN OF REGULATED SUBSTANCES. 18 (a) BASELINES.— 19 (1) PRODUCTION BASELINE.—The baseline for 20 the phasedown of the production of regulated sub- 21 stances shall be the sum of— 22 (A) the sum of the products of— 23 (i) the average annual production in 24 the United States of each regulated sub- 25 VerDate Sep 11 2014 02:11 Jan 08, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H5544.IH H5544 kjohnson on DSK79L0C42PROD with BILLS 11 •HR 5544 IH stance during the 3-year period of calendar 1 years 2011, 2012, and 2013; multiplied by 2 (ii) the respective exchange value of 3 each regulated substance; 4 (B) an amount equal to 15 percent of the 5 sum of the products of— 6 (i) the average production in the 7 United States of each hydrochlorofluoro- 8 carbon in 1989; multiplied by 9 (ii) the respective exchange value of 10 each such hydrochlorofluorocarbon; and 11 (C) an amount equal to 0.42 percent of the 12 sum of the products of— 13 (i) the average production in the 14 United States of each chlorofluorocarbon 15 in 1989; multiplied by 16 (ii) the respective exchange value of 17 each such chlorofluorocarbon. 18 (2) CONSUMPTION BASELINE.—The baseline for 19 the phasedown of the consumption of regulated sub- 20 stances shall be the sum of— 21 (A) an amount equal to the sum of the 22 products of— 23 (i) the average annual consumption in 24 the United States of each regulated sub- 25 VerDate Sep 11 2014 02:11 Jan 08, 2020 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H5544.IH H5544 kjohnson on DSK79L0C42PROD with BILLS 12 •HR 5544 IH stance during the 3-year period of calendar 1 years 2011, 2012, and 2013; multiplied by 2 (ii) the respective exchange value of 3 each such regulated substance; 4 (B) an amount equal to 15 percent of the 5 sum of the products of— 6 (i) the average consumption in the 7 United States of each hydrochlorofluoro- 8 carbon in 1989; multiplied by 9 (ii) the respective exchange value of 10 each such hydrochlorofluorocarbon; and 11 (C) an amount equal to 0.42 percent of the 12 sum of the products of— 13 (i) the average consumption in the 14 United States of each chlorofluorocarbon 15 in 1989; multiplied by 16 (ii) the respective exchange value of 17 each such chlorofluorocarbon. 18 (3) EXCHANGE VALUES.—For purposes of 19 paragraphs (1) and (2), the following exchange val- 20 ues for hydrochlorofluorocarbons and chlorofluoro- 21 carbons re [Text truncated for display. 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