Title 42, The Public Health and WelfareRelease 119-110

§7671f Exchange Authority

Title 42 › CHAPTER 85 — AIR POLLUTION PREVENTION AND CONTROL › SUBCHAPTER VI — STRATOSPHERIC OZONE PROTECTION › § 7671f

Last updated Sep 22, 2026|Official source

Summary

The Administrator must, within 10 months after November 15, 1990, make rules for issuing and trading production allowances for class I and class II substances. The rules must make sure any allowed trades lead to bigger total yearly cuts in production of those substances than would happen without the trades. Trades can swap an allowance for one substance for an allowance for another in the same year based on ozone-depletion weighting. Class I allowances can only be swapped within their listed group. The Administrator will set groups for class II and swaps for class II are limited to each group. The rules must allow two or more people or companies to trade allowances if the seller agrees to a enforceable, measurable annual production cut that (1) is larger than the cut they would otherwise have to make, (2) is larger than the allowances they sold, and (3) would not have happened without the trade. The rules must also provide for issuing and trading consumption allowances the same way as production allowances.

Full Legal Text

Title 42, §7671f

The Public Health and Welfare, Source: USLM XML via OLRC

(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 persons

The 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.

Reference

Citations & Metadata

Citation

42 U.S.C. § 7671f

Title 42, The Public Health and Welfare

Last Updated

Sep 22, 2026

Release point: 119-110