U.S. Code » Title 42 » Chapter CHAPTER 85— AIR POLLUTION PREVENTION AND CONTROL › Subchapter SUBCHAPTER VI— STRATOSPHERIC OZONE PROTECTION

42 U.S.C. § 7671f

Exchange authority

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(a) Transfers

The Administrator shall, within 10 months after November 15, 1990, promulgate rules under this subchapter providing for the issuance of allowances for the production 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 in each year of class I and class II substances 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 allowance for a substance for any year to be transferred for a production 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 (as listed pursuant to section 7671a of this title) may only be transferred for allowances for other substances in the same Group.(3) The Administrator shall, as appropriate, establish groups of class II substances for trading purposes and assign class II substances to such groups. In the case of class II substances, allowances may only be transferred for allowances for other class II substances that are in the same Group.(c) Trades with other personsThe rules under this section shall permit 2 or more persons to transfer production allowances (including interpollutant transfers which meet the requirements of subsections (a) and (b)) if the transferor of such allowances will be subject, under such rules, to an enforceable and quantifiable reduction in annual production which—(1) exceeds the reduction otherwise applicable to the transferor under this subchapter,(2) exceeds the production 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 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 allowances under this section.

(July 14, 1955, ch. 360, title VI, § 607, as added Pub. L. 101–549, title VI, § 602(a), Nov. 15, 1990, 104 Stat. 2660.)
Notes of Decisions
Cited in 4 cases (1 in the last 5 years), 2009–2026 · leading case: Honeywell Int'l, Inc. v. Env't Prot. Agency, 705 F.3d 470 (D.C. Cir. 2013).
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Honeywell Int'l, Inc. v. Env't Prot. Agency, 705 F.3d 470 (D.C. Cir. 2013). · cites it 6× “See 42 U.S.C. § 7671f(b)(1). In an intercompany transfer, two companies swap allowances of the same HCFC.”
Arkema Inc. v. Env't Prot. Agency, 618 F.3d 1 (D.C. Cir. 2010). · cites it 2× “See 42 U.S.C. § 7671f. In 2003, the EPA promulgated a final rule for a cap and trade regulatory system, allocating HCFC allowances on a one-time basis to each participating company and authorizing those companies to expend their baseline allowance during each control period (a…”
Mirant Potomac River, LLC v. Commonwealth of Virginia, State Air Pollution Control Bd. (Va. Ct. App. 2009). · cites it 2× “42 U.S.C. § 7671f. In following that statutory directive, the EPA developed the Clean Air Interstate Rule (“CAIR”) in 2005.”
Affirmed Energy, LLC v. FERC (D.C. Cir. 2026). “Arkema instead involved an Environmental Protection Agency (EPA) rulemaking; the effective bar on retroactivity there arose from the Clean Air Act, 42 U.S.C. § 7671f, together with the Supreme Court’s “clear statement” rule from Bowen v.”
— 42 U.S.C. § 7671f(b)(1) — 1 case
Honeywell Int'l, Inc. v. Env't Prot. Agency, 705 F.3d 470 (D.C. Cir. 2013). “See 42 U.S.C. § 7671f(b)(1). In an intercompany transfer, two companies swap allowances of the same HCFC.”
— 42 U.S.C. § 7671f(b)(l) — 1 case
Honeywell Int'l, Inc. v. Env't Prot. Agency, 705 F.3d 470 (D.C. Cir. 2013). “See 42 U.S.C. § 7671f(b)(1). In an intercompany transfer, two companies swap allowances of the same HCFC.”
— 42 U.S.C. § 7671f(c) — 1 case
Honeywell Int'l, Inc. v. Env't Prot. Agency, 705 F.3d 470 (D.C. Cir. 2013). “See 42 U.S.C. § 7671f(b)(1). In an intercompany transfer, two companies swap allowances of the same HCFC.”
— 42 U.S.C. § 7671f(e) — 1 case
Honeywell Int'l, Inc. v. Env't Prot. Agency, 705 F.3d 470 (D.C. Cir. 2013). “See 42 U.S.C. § 7671f(b)(1). In an intercompany transfer, two companies swap allowances of the same HCFC.”
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