§7671o Transfers Among Parties to Montreal Protocol

Summary

Allows the United States to trade production allowances with other countries under the Montreal Protocol if certain limits are set. For the U.S. to give allowances away, the Administrator must set new U.S. production limits so that allowed U.S. production equals the smallest of three amounts: (1) the Protocol’s allowed maximum for the year minus the allowances sent, (2) the allowed maximum under U.S. law for the year minus the allowances sent, or (3) the average of U.S. actual production in the three years before the transfer minus the allowances sent. The U.S. may buy allowances only if the other country has made similar changes to its limits. The Administrator may lower U.S. production limits to allow a transfer or raise them to reflect allowances the U.S. buys. The Administrator must create rules to do this within 2 years after November 15, 1990. For the United States, “applicable domestic law” means this chapter.