§7671f Exchange authority

Summary

The Administrator must create rules within 10 months after November 15, 1990, to issue production allowances for class I and class II substances (types of ozone‑depleting chemicals) and to regulate trading of those allowances. The rules must make sure that any trades lead to greater total cuts in production each year than would happen without the trades. The rules must allow swapping a production allowance for one substance for one for another in the same year on an ozone‑depletion‑weighted basis. Class I allowances may only be traded within the same class I group. The Administrator will group class II substances for trading and limit trades to within those groups. Trades are allowed only if the seller agrees to an enforceable, measurable annual production cut that is bigger than the cut they would otherwise have, bigger than the allowances they transfer, and would not have happened without the trade. The rules must also create and allow trading of consumption allowances the same way as production allowances.