[Senate Executive Report 117-2]
[From the U.S. Government Publishing Office]


117th Congress       }                         {         Exec. Rept.
                                 SENATE
 2d Session          }                         {            117-2

======================================================================



 
                     AMENDMENT TO MONTREAL PROTOCOL
                         (``KIGALI AMENDMENT'')

                                _______
                                

                  May 26, 2022.--Ordered to be printed

                                _______
                                

         Mr. Menendez, from the Committee on Foreign Relations,
                        submitted the following

                                 REPORT

                    [To accompany Treaty Doc. 117-1]

    The Committee on Foreign Relations, to which was referred 
the Amendment to the Montreal Protocol on Substances that 
Deplete the Ozone Layer (the ``Montreal Protocol''), Adopted at 
Kigali on October 15, 2016, by the Twenty-Eighth Meeting of the 
Parties to the Montreal Protocol (``The Kigali Amendment'') 
(Treaty Doc. 117-1), having considered the same, reports 
favorably thereon with one declaration, as indicated in the 
resolution of advice and consent, and recommends that the 
Senate give its advice and consent to ratification thereof, as 
set forth in this report and the accompanying resolution of 
advice and consent.

                                CONTENTS

                                                                   Page

  I. Purpose..........................................................1
 II. Background.......................................................1
III. Implementing Legislation.........................................2
 IV. Committee Action.................................................3
  V. Committee Recommendation and Comments............................3
 VI. Text of Resolution of Advice and Consent to Ratification.........3

                               I. Purpose

    The purpose of the Kigali Amendment to the Montreal 
Protocol is to update the Montreal Protocol to add to its 
phasedown framework 18 harmful chemicals called 
hydrofluorocarbons (HFCs), which will facilitate the transition 
to next-generation, more efficient refrigerant chemicals, 
including those developed and manufactured by U.S. companies 
and workers.

                             II. Background

    The Treaty would be the fifth amendment to the Montreal 
Protocol; the Senate provided advice and consent to the 
Montreal Protocol and to the prior four amendments on an 
overwhelming, bipartisan basis. Major U.S. companies and 
industry groups, including those in the chemicals, retail, and 
manufacturing industries, strongly support U.S. ratification of 
the Kigali Amendment.
    The principal features of the Kigali Amendment closely 
parallel control measures for other controlled substances under 
the Montreal Protocol. The Kigali Amendment provides for the 
gradual phasedown of the production and consumption of 18 
listed HFCs between 2019 and 2036, subject to certain 
exemptions. The Amendment contains a stepwise phasedown 
schedule that would require a 10 percent reduction upon entry 
into force for the United States, a 40 percent reduction by 
2024, a 70 percent reduction by 2029, and an 80 percent 
reduction by 2034. The last step of the phasedown would be an 
85 percent reduction by 2036.
    The Kigali Amendment amends the trade provisions in Article 
4 of the Montreal Protocol to treat HFCs like other controlled 
substances, that is, Parties to the Amendment are banned from 
trading in HFCs with a non-Party, beginning in 2033. The Kigali 
Amendment similarly amends the Montreal Protocol's licensing 
provisions under Article 4B, to treat HFCs like other 
controlled substances by requiring each Party to establish a 
system for licensing the import and export of new, used, 
recycled, and reclaimed HFCs. The Amendment extends the 
Montreal Protocol's reporting regime in Article 7 to HFCs, by 
requiring Parties to report annually on their production and 
consumption of HFCs. The Amendment also requires Parties to 
destroy, to the extent practicable, byproduct emissions of HFC-
23, a highly potent greenhouse gas generated from the 
production of some substances listed in Annexes C and F of the 
Montreal Protocol, and to report on these efforts. Provisions 
related to the financial mechanism in Article 10 extend the 
scope of the financial mechanism to support implementation of 
the Amendment.
    A business community witness testified before the committee 
that transitioning away from HFCs, including through U.S. 
ratification and global implementation of the Kigali Amendment, 
will generate new U.S. jobs and revenue for U.S. businesses. 
Further, the President's transmittal package cited a study 
conducted in 2018 by Inforum, the University of Maryland's 
Interindustry Forecasting Project, on behalf of the Air-
conditioning, Heating, and Refrigeration Institute and the 
Alliance for Responsible Atmospheric Policy, which estimated 
that joining the Kigali Amendment and its global implementation 
will result in the creation of 33,000 new domestic 
manufacturing jobs, $4.8 billion annually of increased exports, 
and $12.5 billion of increased economic output per year.
    The Kigali Amendment was negotiated among Parties to the 
Montreal Protocol, including the United States, and reflects 
significant input from the United States government and U.S. 
industry. It entered into force on January 1, 2019 and 
currently has 131 Parties.

                     III. Implementing Legislation

    The Kigali Amendment is not self-executing; however, no 
further legislation is required to implement it. On December 
27, 2020, the American Innovation and Manufacturing (AIM) Act 
of 2020 was enacted, which provides the Executive Branch with 
the necessary authorities to phase-down the production and 
consumption of HFCs in the United States, consistent with the 
Kigali Amendment. The U.S. Government is already implementing 
the AIM Act.

                          IV. Committee Action

    The Committee on Foreign Relations held a hearing to 
consider the Kigali Amendment on April 7, 2022. On May 4, 2022, 
the committee considered the Kigali Amendment and ordered it 
favorably reported by voice vote, with a quorum present.

                V. Committee Recommendation and Comments

    The Committee on Foreign Relations believes that 
ratification of the Kigali Amendment will advance the interests 
of U.S. businesses and consumers, by contributing to the global 
adoption of next-generation refrigerant technologies in which 
U.S. industry leads and by opening markets to U.S. businesses. 
As a consequence, it will generate revenue and create U.S. 
jobs, while addressing harmful chemicals. Meanwhile, citing 
Article 4 of the Kigali Amendment, government and industry 
witnesses emphasized in their testimony before the committee 
the serious risks associated with U.S. businesses being locked 
out of the global trade in HFCs with the large and growing 
number of Parties to the treaty, if the United States fails to 
ratify the treaty. The committee therefore urges the Senate to 
act promptly to give advice and consent to ratification of the 
Kigali Amendment, as set forth in this report and the 
accompanying resolution of advice and consent.
    The committee has included in its resolution of advice and 
consent one proposed declaration, which states that the Kigali 
Amendment is not self-executing. This declaration is consistent 
with the views of the executive branch. Historically, the 
Senate had not routinely included statements regarding the 
self-executing nature of treaties in resolutions of advice and 
consent, but in light of the Supreme Court decision, Medellin 
v. Texas, 552 U.S. 491 (2008), the committee has determined 
that a clear statement in the resolution continues to be 
warranted. A further discussion of the committee's views on 
this matter can be found in Section VIII of Executive Report 
110-12.

             VI. Text of Resolution of Advice and Consent 
                            to Ratification

    Resolved (two-thirds of the Senators present concurring 
therein),

SECTION 1. SENATE ADVICE AND CONSENT SUBJECT TO A DECLARATION

    The Senate advises and consents to the ratification of the 
Amendment to the Montreal Protocol on Substances that Deplete 
the Ozone Layer (the ``Montreal Protocol''), adopted at Kigali 
on October 15, 2016, by the Twenty-Eighth Meeting of the 
Parties to the Montreal Protocol (``The Kigali Amendment'') 
(Treaty Doc. 117-1), subject to the declaration of section 2.

SECTION 2. DECLARATION

    The advice and consent of the Senate under section 1 is 
subject to the following declaration:
          The Kigali Amendment is not self-executing.


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