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(continued)
or nitrogen oxides emission rate in pounds per million Btu
as reported in the NAPAP Emission Inventory, Version 2.
(17)(A) The term "utility unit" means-
(i) a unit that serves a generator in any State that
produces electricity for sale, or
(ii) a unit that, during 1985, served a generator in
any State that produced electricity for sale.
(B) Notwithstanding subparagraph (A), a unit described in
subparagraph (A) that-
(i) was in commercial operation during 1985, but
(ii) did not, during 1985, serve a generator in any
State that produced electricity for sale shall not be a
utility unit for purposes of this title.
(C) A unit that cogenerates steam and electricity is not a
"utility unit" for purposes of this title unless the unit is
constructed for the purpose of supplying, or commences
construction after the date of enactment of this title and
supplies, more than one-third of its potential electric
output capacity and more than 25 megawatts electrical output
to any utility power distribution system for sale.
(18) The term "allowable 1985 emissions rate" means a
federally enforceable emissions limitation for sulfur
dioxide or oxides of nitrogen, applicable to the unit in
1985 or the limitation applicable in such other subsequent
year as determined by the Administrator if such a limitation
for 1985 does not exist. Where the emissions limitation for
a unit is not expressed in pounds of emissions per million
Btu, or the averaging period of that emissions limitation is
not expressed on an annual basis, the Administrator shall
calculate the annual equivalent of that emissions limitation
in pounds per million Btu to establish the allowable 1985
emissions rate.
(19) The term "qualifying phase I technology" means a
technological system of continuous emission reduction which
achieves a 90 percent reduction in emissions of sulfur

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dioxide from the emissions that would have resulted from the
use of fuels which were not subject to treatment prior to
combustion.
(20) The term "alternative method of compliance" means a
method of compliance in accordance with one or more of the
following authorities:
(A) a substitution plan submitted and approved in
accordance with subsections 404 (b) and (c);
(B) a Phase I extension plan approved by the Adminis-
trator under section 404(d), using qualifying phase I
technology as determined by the Administrator in accor-
dance with that section; or
(C) repowering with a qualifying clean coal
technology under section 409.
(21) The term "commenced" as applied to construction of
any new electric utility unit means that an owner or
operator has undertaken a continuous program of construction
or that an owner or operator has entered into a contractual
obligation to undertake and complete, within a reasonable
time, a continuous program of construction.
(22) The term "commenced commercial operation" means to
have begun to generate electricity for sale.
(23) The term "construction" means fabrication, erection,
or installation of an affected unit.
(24) The term "industrial source" means a unit that does
not serve a generator that produces electricity, a "non-
utility unit" as defined in this section, or a process
source as defined in section 410(e).
(25) The term "nonutility unit" means a unit other than a
utility unit.
(26) The term "designated representative" means a
responsible person or official authorized by the owner or
operator of a unit to represent the owner or operator in
matters pertaining to the holding, transfer, or disposition
of allowances allocated to a unit, and the submission of and
compliance with permits, permit applications, and compliance
plans for the unit.
(27) The term "life-of-the-unit, firm power contractual
arrangement" means a unit participation power sales
agreement under which a utility or industrial customer
reserves, or is entitled to receive, a specified amount or
percentage of capacity and associated energy generated by a
specified generating unit (or units) and pays its
proportional amount of such unit's total costs, pursuant to
a contract either-
(A) for the life of the unit;
(B) for a cumulative term of no less than 30 years,
including contracts that permit an election for early
termination; or
(C) for a period equal to or greater than 25 years or
70 percent of the economic useful life of the unit
determined as of the time the unit was built, with option
rights to purchase or re-lease some portion of the
capacity and associated energy generated by the unit (or
units) at the end of the period.

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(28) The term "basic Phase II allowance allocations" means:
(A) For calendar years 2000 through 2009 inclusive,
allocations of allowances made by the Administrator
pursuant to section 403 and subsections (b)(1), (3), and
(4); (c)(1), (2), (3), and (5); (d)(1), (2), (4), and (5);
(e); (f); (g) (1), (2), (3), (4), and (5); (h)(1); (i) and
(j) of section 405.
(B) For each calendar year beginning in 2010, alloca-
tions of allowances made by the Administrator pursuant to
section 403 and subsections (b)(1), (3), and (4); (c)(1),
(2), (3), and (5); (d)(1), (2), (4) and (5); (e); (f);
(g)(1), (2), (3), (4), and (5); (h)(1) and (3); (i) and
(j) of section 405.
(29) The term "Phase II bonus allowance allocations" means,
for calendar year 2000 through 2009, inclusive, and only for
such years, allocations made by the Administrator pursuant to
section 403, subsections (a)(2), (b)(2), (c)(4), (d)(3) (except
as otherwise provided therein), and (h)(2) of section 405, and
section 406.
[42 U.S.C. 7651a]
SEC. 403. SULFUR DIOXIDE ALLOWANCE PROGRAM FOR EXISTING AND NEW
UNITS.
(a) Allocations of Annual Allowances for Existing and New
Units.- (1) For the emission limitation programs under this
title, the Administrator shall allocate annual allowances for the
unit, to be held or distributed by the designated representative
of the owner or operator of each affected unit at an affected
source in accordance with this title, in an amount equal to the
annual tonnage emission limitation calculated under section 404,
405, 406, 409, or 410 except as otherwise specifically provided
elsewhere in this title. Except as provided in sections
405(a)(2), 405(a)(3), 409 and 410, beginning January 1, 2000, the
Administrator shall not allocate annual allowances to emit sulfur
dioxide pursuant to section 405 in such an amount as would result
in total annual emissions of sulfur dioxide from utility units in
excess of 8.90 million tons except that the Administrator shall
not take into account unused allowances carried forward by owners
and operators of affected units or by other persons holding such
allowances, following the year for which they were allocated. If
necessary to meeting the restrictions imposed in the preceding
sentence, the Administrator shall reduce, pro rata, the basic
Phase II allowance allocations for each unit subject to the
requirements of section 405. Subject to the provisions of section
416, the Administrator shall allocate allowances for each
affected unit at an affected source annually, as provided in
paragraphs (2) and (3) and section 408. Except as provided in
sections 409 and 410, the removal of an existing affected unit or
source from commercial operation at any time after the date of
the enactment of the Clean Air Act Amendments of 1990 (whether
before or after January 1, 1995, or January 1, 2000) shall not
terminate or otherwise affect the allocation of allowances
pursuant to section 404 or 405 to which the unit is entitled.
Allowances shall be allocated by the Administrator without cost
to the recipient, except for allowances sold by the Administrator
pursuant to section 416. Not later than December 31, 1991, the

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Administrator shall publish a proposed list of the basic Phase II
allowance allocations, the Phase II bonus allowance allocations
and, if applicable, allocations pursuant to section 405(a)(3) for
each unit subject to the emissions limitation requirements of
section 405 for the year 2000 and the year 2010. After notice and
opportunity for public comment, but not later than December 31,
1992, the Administrator shall publish a final list of such
allocations, subject to the provisions of section 405(a)(2). Any
owner or operator of an existing unit subject to the requirements
of section 405(b) or (c) who is considering applying for an
extension of the emission limitation requirement compliance
deadline for that unit from January 1, 2000, until not later than
December 31, 2000, pursuant to section 409, shall notify the
Administrator no later than March 31, 1991. Such notification
shall be used as the basis for estimating the basic Phase II
allowances under this subsection. Prior to June 1, 1998, the
Administrator shall publish a revised final statement of
allowance allocations, subject to the provisions of section
405(a)(2) and taking into account the effect of any compliance
date extensions granted pursuant to section 409 on such
allocations. Any person who may make an election concerning the
amount of allowances to be allocated to a unit or units shall
make such election and so inform the Administrator not later than
March 31, 1991, in the case of an election under section 405 (or
June 30, 1991, in the case of an election under section 406). If
such person fails to make such election, the Administrator shall
set forth for each unit owned or operated by such person, the
amount of allowances reflecting the election that would, in the
judgment of the Administrator, provide the greatest benefit for
the owner or operator of the unit. If such person is a Governor
who may make an election under section 406 and the Governor fails
to make an election, the Administrator shall set forth for each
unit in the State the amount of allowances reflecting the
election that would, in the judgment of the Administrator,
provide the greatest benefit for units in the State.
(b) Allowance Transfer System.- Allowances allocated under
this title may be transferred among designated representatives of
the owners or operators of affected sources under this title and
any other person who holds such allowances, as provided by the
allowance system regulations to be promulgated by the Administra-
tor not later than eighteen months after the date of enactment of
the Clean Air Act Amendments of 1990. Such regulations shall
establish the allowance system prescribed under this section,
including, but not limited to, requirements for the allocation,
transfer, and use of allowances under this title. Such
regulations shall prohibit the use of any allowance prior to the
calendar year for which the allowance was allocated, and shall
provide, consistent with the purposes of this title, for the
identification of unused allowances, and for such unused
allowances to be carried forward and added to allowances
allocated in subsequent years, including allowances allocated to
units subject to Phase I requirements (as described in section
404) which are applied to emissions limitations requirements in
Phase II (as described in section 405). Transfers of allowances
shall not be effective until written certification of the
transfer, signed by a responsible official of each party to the
transfer, is received and recorded by the Administrator. Such
regulations shall permit the transfer of allowances prior to the

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issuance of such allowances. Recorded pre-allocation transfers
shall be deducted by the Administrator from the number of
allowances which would otherwise be allocated
to the transferor, and added to those allowances allocated to the
transferee. Pre-allocation transfers shall not affect the
prohibition contained in this subsection against the use of
allowances prior to the year for which they are allocated.
(c) Interpollutant Trading.- Not later than January 1, 1994,
the Administrator shall furnish to the Congress a study
evaluating the environmental and economic consequences of
amending this title to permit trading sulfur dioxide allowances
for nitrogen oxides allowances.
(d) Allowance Tracking System.- (1) The Administrator shall
promulgate, not later than 18 months after the date of enactment
of the Clean Air Act Amendments of 1990, a system for issuing,
recording, and tracking allowances, which shall specify all
necessary procedures and requirements for an orderly and competi-
tive functioning of the allowance system. All allowance alloca-
tions and transfers shall, upon recordation by the Administrator,
be deemed a part of each unit's permit requirements pursuant to
section 408, without any further permit review and revision.
(2) In order to insure electric reliability, such regulations
shall not prohibit or affect temporary increases and decreases in
emissions within utility systems, power pools, or utilities
entering into allowance pool agreements, that result from their
operations, including emergencies and central dispatch, and such
temporary emissions increases and decreases shall not require
transfer of allowances among units nor shall it require recorda-
tion. The owners or operators of such units shall act through a
designated representative. Notwithstanding the preceding
sentence, the total tonnage of emissions in any calendar year
(calculated at the end thereof) from all units in such a utility
system, power pool, or allowance pool agreements shall not exceed
the total allowances for such units for the calendar year
concerned.
(e) New Utility Units.- After January 1, 2000, it shall be
unlawful for a new utility unit to emit an annual tonnage of
sulfur dioxide in excess of the number of allowances to emit held
for the unit by the unit's owner or operator. Such new utility
units shall not be eligible for an allocation of sulfur dioxide
allowances under subsection (a)(1), unless the unit is subject to
the provisions of subsection (g)(2) or (3) of section 405. New
utility units may obtain allowances from any person, in
accordance with this title. The owner or operator of any new
utility unit in violation of this subsection shall be liable for
fulfilling the obligations specified in section 411 of this
title.
(f) Nature of Allowances.- An allowance allocated under this
title is a limited authorization to emit sulfur dioxide in
accordance with the provisions of this title. Such allowance does
not constitute a property right. Nothing in this title or in any
other provision of law shall be construed to limit the authority
of the United States to terminate or limit such authorization.
Nothing in this section relating to allowances shall be construed
as affecting the application of, or compliance with, any other

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provision of this Act to an affected unit or source, including
the provisions related to applicable National Ambient Air Quality
Standards and State implementation plans. Nothing in this section
shall be construed as requiring a change of any kind in any State
law regulating electric utility rates and charges or affecting
any State law regarding such State regulation or as limiting
State regulation (including any prudency review) under such a
State law. Nothing in this section shall be construed as
modifying the Federal Power Act or as affecting the authority of
the Federal Energy Regulatory Commission under that Act. Nothing
in this title shall be construed to interfere with or impair any
program for competitive bidding for power supply in a State in
which such program is established. Allowances, once allocated to
a person by the Administrator, may be received, held, and
temporarily or permanently transferred in accordance with this
title and the regulations of the Administrator without regard to
whether or not a permit is in effect under title V or section 408
with respect to the unit for which such allowance was originally
allocated and recorded. Each permit under this title and each
permit issued under title V for any affected unit shall provide
that the affected unit may not emit an annual tonnage of sulfur
dioxide in excess of the allowances held for that unit.
(g) Prohibition.- It shall be unlawful for any person to hold,
use, or transfer any allowance allocated under this title, except
in accordance with regulations promulgated by the Administrator.
It shall be unlawful for any affected unit to emit sulfur dioxide
in excess of the number of allowances held for that unit for that
year by the owner or operator of the unit. Upon the allocation of
allowances under this title, the prohibition contained in the
preceding sentence shall supersede any other emission limitation
applicable under this title to the units for which such
allowances are allocated. Allowances may not be used prior to the
calendar year for which they are allocated. Nothing in this
section or in the allowance system regulations shall relieve the
Administrator of the Administrator's permitting, monitoring and
enforcement obligations under this Act, nor relieve affected
sources of their requirements and liabilities under this Act.
(h) Competitive Bidding for Power Supply.- Nothing in this
title shall be construed to interfere with or impair any program
for competitive bidding for power supply in a State in which such
program is established.
(i) Applicability of the Antitrust Laws.-
(1) Nothing in this section affects-
(A) the applicability of the antitrust laws to the
transfer, use, or sale of allowances, or
(B) the authority of the Federal Energy Regulatory
Commission under any provision of law respecting unfair
methods of competition or anticompetitive acts or
practices.
(2) As used in this section, "antitrust laws" means those
Acts set forth in section 1 of the Clayton Act (15 U.S.C.
12), as amended.
(j) Public Utility Holding Company Act.- The acquisition or
disposition of allowances pursuant to this title including the


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issuance of securities or the undertaking of any other financing
transaction in connection with such allowances shall not be
subject to the provisions of the Public Utility Holding Company
Act of 1935.
[42 U.S.C. 7651b]
SEC. 404. PHASE I SULFUR DIOXIDE REQUIREMENTS.
(a) Emission Limitations.- (1) After January 1, 1995, each
source that includes one or more affected units listed in table A
is an affected source under this section. After January 1, 1995,
it shall be unlawful for any affected unit (other than an
eligible phase I unit under section 404(d)(2)) to emit sulfur
dioxide in excess of the tonnage limitation stated as a total
number of allowances in table A for phase I, unless (A) the
emissions reduction requirements applicable to such unit have
been achieved pursuant to subsection (b) or (d), or (B) the owner
or operator of such unit holds allowances to emit not less than
the unit's total annual emissions, except that, after January 1,
2000, the emissions limitations established in this section shall
be superseded by those established in section 405. The owner or
operator of any unit in violation of this section shall be fully
liable for such violation including, but not limited to,
liability for fulfilling the obligations specified in section
411.
(2) Not later than December 31, 1991, the Administrator shall
determine the total tonnage of reductions in the emissions of
sulfur dioxide from all utility units in calendar year 1995 that
will occur as a result of compliance with the emissions
limitation requirements of this section, and shall establish a
reserve of allowances equal in amount to the number of tons
determined thereby not to exceed a total of 3.50 million tons. In
making such a determination, the Administrator shall compute for
each unit subject to the emissions limitation requirements of
this section the difference between:
(A) the product of its baseline multiplied by the lesser
of each unit's allowable 1985 emissions rate and its actual
1985 emissions rate, divided by 2,000, and
(B) the product of each unit's baseline multiplied by 2.50
lbs/mmBtu divided by 2,000,
and sum the computations. The Administrator shall adjust the
foregoing calculation to reflect projected calendar year 1995
utilization of the units subject to the emissions limitations of
this title that the Administrator finds would have occurred in
the absence of the imposition of such requirements. Pursuant to
subsection (d), the Administrator shall allocate allowances from
the reserve established herein under until the earlier of such
time as all such allowances in the reserve are allocated or
December 31, 1999.
(3) In addition to allowances allocated pursuant to paragraph
(1), in each calendar year beginning in 1995 and ending in 1999,
inclusive, the Administrator shall allocate for each unit on
Table A that is located in the States of Illinois, Indiana, or
Ohio (other than units at Kyger Creek, Clifty Creek and Joppa
Steam), allowances in an amount equal to 200,000 multiplied by
the unit's pro rata share of the total number of allowances
allocated for all units on Table A in the 3 States (other than

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units at Kyger Creek, Clifty Creek, and Joppa Steam) pursuant to
paragraph (1). Such allowances shall be excluded from the
calculation of the reserve under paragraph (2).
(b) Substitutions.- The owner or operator of an affected unit
under subsection (a) may include in its section 408 permit
application and proposed compliance plan a proposal to reassign,
in whole or in part, the affected unit's sulfur dioxide reduction
requirements to any other unit(s) under the control of such owner
or operator. Such proposal shall specify-
(1) the designation of the substitute unit or units to
which any part of the reduction obligations of subsection
(a) shall be required, in addition to, or in lieu of, any
original affected units designated under such subsection;
(2) the original affected unit's baseline, the actual and
allowable 1985 emissions rate for sulfur dioxide, and the
authorized annual allowance allocation stated in table A;
(3) calculation of the annual average tonnage for calendar
years 1985, 1986, and 1987, emitted by the substitute unit
or units, based on the baseline for each unit, as defined in
section 402(d), multiplied by the lesser of the unit's
actual or allowable 1985 emissions rate;
(4) the emissions rates and tonnage limitations that would
be applicable to the original and substitute affected units
under the substitution proposal;
(5) documentation, to the satisfaction of the Administra-
tor, that the reassigned tonnage limits will, in total,
achieve the same or greater emissions reduction than would
have been achieved by the original affected unit and the
substitute unit or units without such substitution; and
(6) such other information as the Administrator may
require.
(c) Administrator's Action on Substitution Proposals.- (1) The
Administrator shall take final action on such substitution
proposal in accordance with section 408(c) if the substitution
proposal fulfills the requirements of this subsection. The
Administrator may approve a substitution proposal in whole or in
part and with such modifications or conditions as may be consis-
tent with the orderly functioning of the allowance system and
which will ensure the emissions reductions contemplated by this
title. If a proposal does not meet the requirements of subsection
(b), the Administrator shall disapprove it. The owner or operator
of a unit listed in table A shall not substitute another unit or
units without the prior approval of the Administrator.
(2) Upon approval of a substitution proposal, each substitute
unit, and each source with such unit, shall be deemed affected
under this title, and the Administrator shall issue a permit to
the original and substitute affected source and unit in
accordance with the approved substitution plan and section 408.
The Administrator shall allocate allowances for the original and
substitute affected units in accordance with the approved
substitution proposal pursuant to section 403. It shall be
unlawful for any source or unit that is allocated allowances
pursuant to this section to emit sulfur dioxide in excess of the
emissions limitation provided for in the approved substitution
permit and plan unless the owner or operator of each unit

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governed by the permit and approved substitution plan holds
allowances to emit not less than the units total annual
emissions. The owner or operator of any original or substitute
affected unit operated in violation
of this subsection shall be fully liable for such violation,
including liability for fulfilling the obligations specified in
section 411 of this title. If a substitution proposal is disap-
proved, the Administrator shall allocate allowances to the
original affected unit or units in accordance with subsection
(a).
(d) Eligible Phase I Extension Units.- (1) The owner or
operator of any affected unit subject to an emissions limitation
requirement under this section may petition the Administrator in
its permit application under section 408 for an extension of 2
years of the deadline for meeting such requirement, provided that
the owner or operator of any such unit holds allowances to emit
not less than the unit's total annual emissions for each of the 2
years of the period of extension. To qualify for such an exten-
sion, the affected unit must either employ a qualifying phase I
technology, or transfer its phase I emissions reduction
obligation to a unit employing a qualifying phase I technology.
Such transfer shall be accomplished in accordance with a
compliance plan, submitted and approved under section 408, that
shall govern operations at all units included in the transfer,
and that specifies the emissions reduction requirements imposed
pursuant to this title.
(2) Such extension proposal shall-
(A) specify the unit or units proposed for designation as
an eligible phase I extension unit;
(B) provide a copy of an executed contract, which may be
contingent upon the Administrator approving the proposal,
for the design engineering, and construction of the
qualifying phase I technology for the extension unit, or for
the unit or units to which the extension unit's emission
reduction obligation is to be transferred;
(C) specify the unit's or units' baseline, actual 1985
emissions rate, allowable 1985 emissions rate, and projected
utilization for calendar years 1995 through 1999;
(D) require CEMS on both the eligible phase I extension
unit or units and the transfer unit or units beginning no
later than January 1, 1995; and
(E) specify the emission limitation and number of
allowances expected to be necessary for annual operation
after the qualifying phase I technology has been installed.
(3) The Administrator shall review and take final action on
each extension proposal in order of receipt, consistent with
section 408, and for an approved proposal shall designate the
unit or units as an eligible phase I extension unit. The
Administrator may approve an extension proposal in whole or in
part, and with such modifications or conditions as may be
necessary, consistent with the orderly functioning of the
allowance system, and to ensure the emissions reductions
contemplated by the title.
(4) In order to determine the number of proposals eligible for
allocations from the reserve under subsection (a)(2) and the

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number of allowances remaining available after each proposal is
acted upon, the Administrator shall reduce the total number of
allowances remaining available in the reserve by the number of
allowances calculated according to subparagraphs (A), (B) and (C)
until either no allowances remain available in the reserve for
further allocation or all approved proposals have been acted
upon.
If no allowances remain available in the reserve for further
allocation before all proposals have been acted upon by the
Administrator, any pending proposals shall be disapproved. The
Administrator shall calculate allowances equal to-
(A) the difference between the lesser of the average
annual emissions in calendar years 1988 and 1989 or the
projected emissions tonnage for calendar year 1995 of each
eligible phase I extension unit, as designated under
paragraph (3), and the product of the unit's baseline
multiplied by an emission rate of 2.50 lbs/mmBtu, divided by
2,000;
(B) the difference between the lesser of the average
annual emissions in calendar years 1988 and 1989 or the
projected emissions tonnage for calendar year 1996 of each
eligible phase I extension unit, as designated under
paragraph (3), and the product of the unit's baseline
multiplied by an emission rate of 2.50 lbs/mmBtu, divided by
2,000; and
(C) the amount by which (i) the product of each unit's
baseline multiplied by an emission rate of 1.20 lbs/mmBtu,
divided by 2,000, exceeds (ii) the tonnage level specified
under subparagraph (E) of paragraph (2) of this subsection
multiplied by a factor of 3.
(5) Each eligible Phase I extension unit shall receive
allowances determined under subsection (a)(1) or (c) of this
section. In addition, for calendar year 1995, the Administrator
shall allocate to each eligible Phase I extension unit, from the
allowance reserve created pursuant to subsection (a)(2),
allowances equal to the difference between the lesser of the
average annual emissions in calendar years 1988 and 1989 or its
projected emissions tonnage for calendar year 1995 and the
product of the unit's baseline multiplied by an emission rate of
2.50 lbs/mmBtu, divided by 2,000. In calendar year 1996, the
Administrator shall allocate for each eligible unit, from the
allowance reserve created pursuant to subsection (a)(2),
allowances equal to the difference between the lesser of the
average annual emissions in calendar years 1988 and 1989 or its
projected emissions tonnage for calendar year 1996 and the
product of the unit's baseline multiplied by an emission rate of
2.50 lbs/mmBtu, divided by 2,000. It shall be unlawful for any
source or unit subject to an approved extension plan under this
subsection to emit sulfur dioxide in excess of the emissions
limitations provided for in the permit and approved extension
plan, unless the owner or operator of each unit governed by the
permit and approved plan holds allowances to emit not less than
the unit's total annual emissions.
(6) In addition to allowances specified in paragraph (5), the
Administrator shall allocate for each eligible Phase I extension

335





unit employing qualifying Phase I technology, for calendar years
1997, 1998, and 1999, additional allowances, from any remaining
allowances in the reserve created pursuant to subsection (a)(2),
following the reduction in the reserve provided for in paragraph
(4), not to exceed the amount by which (A) the product of each
eligible unit's baseline times an emission rate of 1.20
lbs/mmBtu, divided by 2,000, exceeds (B) the tonnage level
specified under subparagraph (E) of paragraph (2) of this
subsection.
(7) After January 1, 1997, in addition to any liability under
this Act, including under section 411, if any eligible phase I
extension unit employing qualifying phase I technology or any
transfer unit under this subsection emits sulfur dioxide in
excess of the annual tonnage limitation specified in the
extension plan, as approved in paragraph (3) of this subsection,
the Administrator shall, in the calendar year following such
excess, deduct allowances equal to the amount of such excess from
such unit's annual allowance allocation.
(e)(1) In the case of a unit that receives authorization from
the Governor of the State in which such unit is located to make
reductions in the emissions of sulfur dioxide prior to calendar
year 1995 and that is part of a utility system that meets the
following requirements: (A) the total coal-fired generation
within the utility system as a percentage of total system
generation decreased by more than 20 percent between January 1,
1980, and December 31, 1985; and (B) the weighted capacity factor
of all coal-fired units within the utility system averaged over
the period from January 1, 1985, through December 31, 1987, was
below 50 percent, the Administrator shall allocate allowances
under this paragraph for the unit pursuant to this subsection.
The Administrator shall allocate allowances for a unit that is an
affected unit pursuant to section 405 (but is not also an
affected unit under this section) and part of a utility system
that includes 1 or more affected units under section 405 for
reductions in the emissions of sulfur dioxide made during the
period 1995091999 if the unit meets the requirements of this
subsection and the requirements of the preceding sentence, except
that for the purposes of applying this subsection to any such
unit, the prior year concerned as specified below, shall be any
year after January 1, 1995 but prior to January 1, 2000.
(2) In the case of an affected unit under this section
described in subparagraph (A), the allowances allocated under
this subsection for early reductions in any prior year may not
exceed the amount which (A) the product of the unit's baseline
multiplied by the unit's 1985 actual sulfur dioxide emission rate
(in lbs. per mmBtu), divided by 2,000, exceeds (B) the allowances
specified for such unit in Table A. In the case of an affected
unit under section 405 described in subparagraph (A), the
allowances awarded under this subsection for early reductions in
any prior year may not exceed the amount by which (i) the product
of the quantity of fossil fuel consumed by the unit (in mmBtu) in
the prior year multiplied by the lesser of 2.50 or the most
stringent emission rate (in lbs. per mmBtu) applicable to the
unit under the applicable implementation plan, divided by 2,000,
exceeds (ii) the unit's actual tonnage of sulfur dioxide emission

336


for the prior year concerned. Allowances allocated under this
subsection for units referred to in subparagraph (A) may be
allocated only for emission reductions achieved as a result of
physical changes or changes in the method of operation made after
the date of enactment of the Clean Air Act Amendments of 1990,
including changes in the type or quality of fossil fuel consumed.
(3) In no event shall the provisions of this paragraph be
interpreted as an event of force majeure or a commercial
impractibility or in any other way as a basis for excused
nonperformance by a
utility system under a coal sales contract in effect before the
date of enactment of the Clean Air Act Amendments of 1990.

TABLE A.- AFFECTED SOURCES AND UNITS IN PHASE I AND THEIR SULFUR
DIOXIDE ALLOWANCES (TONS)

State Plant Name Generator Phase I
Allowances

Alabama . . . . . . . . . . . Colbert . . . . . . . . . . . 1 13,570
2 15,310
3 15,400
4 15,410
5 37,180
E.C. Gaston . . . . . . . . . 1 18,100
2 18,540
3 18,310
4 19,280
5 59,840

Florida . . . . . . . . . . . Big Ben . . . . . . . . . . . 1 28,410
2 27,100
3 26,740
Crist . . . . . . . . . . . . 6 19,200
7 31,680
























337





State Plant Name Generator Phase I
Allowances

Georgia . . . . . . . . . . . Bowen . . . . . . . . . . . . 1 56,320
2 54,770
3 71,550
4 71,740
Hammond . . . . . . . . . . . 1 8,780
2 9,220
3 8,910
4 37,640
J.M. McDonough . . . . . . . 1 19,910
2 20,600
Wansley . . . . . . . . . . . 1 70,770
2 65,430
Yates . . . . . . . . . . . . 1 7,210
2 7,040
3 6,950
4 8,910
5 9,410
6 24,760
7 21,480
Illinois . . . . . . . . . . Baldwin . . . . . . . . . . . 1 42,010
2 44,420
3 42,550
Coffeen . . . . . . . . . . . 1 11,790
2 35,670
Grand Tower . . . . . . . . . 4 5,910
Henepin . . . . . . . . . . . 2 18,410
Joppa Steam . . . . . . . . . 1 12,590
2 10,770
3 12,270
4 11,360
5 11,420
6 10,620
Kincaid . . . . . . . . . . . 1 31,530
2 33,810
Meredosia . . . . . . . . . . 3 13,890
Vermilion . . . . . . . . . . 2 8,880
Indiana . . . . . . . . . . . Bailly . . . . . . . . . . . 7 11,180
Breed . . . . . . . . . . . . 8 15,630
Cayuga . . . . . . . . . . . 1 18,500
1 33,370
2 34,130












338





State Plant Name Generator Phase I
Allowances

Clifty Creek . . . . . . . . 1 20,150
2 19,810
3 20,410
4 20,080
5 19,360
6 20,380
E.W. Stout . . . . . . . . . 5 3,880
6 4,770
7 23,610
F.B. Culley . . . . . . . . . 2 4,290
3 16,970
F.E. Ratts . . . . . . . . . 1 8,330
2 8,480
Gibson . . . . . . . . . . . 1 40,400
2 41,010
3 41,080
4 40,320
H.T. Pritchard . . . . . . . 6 5,770
Michigan City . . . . . . . . 12 23,310
Petersburg . . . . . . . . . 1 16,430
2 32,380
R. Gallagher . . . . . . . . 1 6,490
2 7,280
3 6,530
4 7,650

Tanners Creek . . . . . . . . 4 24,820
Wabash River . . . . . . . . 1 4,000
2 2,860
3 3,750
5 3,670
6 12,280
Warrick . . . . . . . . . . . 4 26,980
Iowa . . . . . . . . . . . . Burlington . . . . . . . . . 1 10,710
Des Moines . . . . . . . . . 7 2,320
George Neal . . . . . . . . . 1 1,290
M.L. Kapp . . . . . . . . . . 2 13,800
Prairie Creek . . . . . . . . 4 8,180
Riverside . . . . . . . . . . 5 3,990

Kansas . . . . . . . . . . . Quindaro . . . . . . . . . . 2 4,220












339





State Plant Name Generator Phase I
Allowances

Kentucky . . . . . . . . . . Coleman . . . . . . . . . . . 1 11,250
2 12,840
3 12,340
Cooper . . . . . . . . . . . 1 7,450
2 15,320
E.W. Brown . . . . . . . . . 1 7,110
2 10,910
3 26,100
Elmer Smith . . . . . . . . . 1 6,520
2 14,410
Ghent . . . . . . . . . . . . 1 28,410
Green River . . . . . . . . . 4 7,820
H.L. Spurlock . . . . . . . . 1 22,780
Henderson II . . . . . . . . 113,340 (continued)