Loading (50 kb)...'
(continued)
2 12,310
Paradise 3 59,170
Shawnee 10 10,170
Maryland . . . . . . . . . . Chalk Point . . . . . . . . . 1 21,910
2 24,330
C.P. Crane . . . . . . . . . 1 10,330
2 9,230
Morgantown . . . . . . . . . 1 35,260
2 38,480
Michigan . . . . . . . . . . J.H. Campbell 1 19,280
2 23,060
Minnesota . . . . . . . . . . High Bridge . . . . . . . . . 6 4,270
Mississippi . . . . . . . . . Jack Watson 4 17,910
5 36,700
Missouri . . . . . . . . . . Asbury . . . . . . . . . . . 1 16,190
James River . . . . . . . . . 5 4,850
Labadie . . . . . . . . . . . 1 40,110
2 37,710
3 40,310
4 35,940
Montrose . . . . . . . . . . 1 7,390
2 8,200
3 10,090
New Madrid . . . . . . . . . 1 28,240
2 32,480
Sibley . . . . . . . . . . . 3 15,580
Sioux . . . . . . . . . . . . 1 22,570
2 23,690
Thomas Hill . . . . . . . . . 1 10,250
2 19,390
New Hampshire . . . . . . . . Merrimack . . . . . . . . . . 1 10,190
2 22,000
340
State Plant Name Generator Phase I
Allowances
New Jersey . . . . . . . . . B.L. England . . . . . . . . 1 9,060
2 11,720
New York . . . . . . . . . . Dunkirk . . . . . . . . . . . 3 12,600
4 14,060
Greenbridge . . . . . . . . . 4 7,540
Milliken . . . . . . . . . . 1 11,170
2 12,410
Northport . . . . . . . . . . 1 19,810
2 24,110
3 26,480
Port Jefferson . . . . . . . 3 10,470
4 12,330
Ohio . . . . . . . . . . . . Ashtabula . . . . . . . . . . 5 16,740
Avon Lake . . . . . . . . . . 8 11,650
9 30,480
Cardinal . . . . . . . . . . 1 34,270
2 38,320
Conesville . . . . . . . . . 1 4,210
2 4,890
3 5,500
4 48,770
Eastlake . . . . . . . . . . 1 7,800
2 8,640
3 10,020
4 14,510
5 34,070
Edgewater . . . . . . . . . . 4 5,050
Gen. J.M. Gavin . . . . . . . 1 79,080
2 80,560
Kyger Creek . . . . . . . . . 1 19,280
2 18,560
3 17,910
4 18,710
5 18,740
Miami Fort . . . . . . . . . 5 760
6 11,380
7 38,510
341
State Plant Name Generator Phase I
Allowances
Muskingum River . . . . . . . 1 14,880
2 14,170
3 13,950
4 11,780
5 40,470
Niles . . . . . . . . . . . . 1 6,940
2 9,100
Pickway . . . . . . . . . . . 5 4,30
R.E. Burger . . . . . . . . . 3 6,150
4 10,780
5 12,430
W.H. Sammis . . . . . . . . . 5 24,170
6 39,930
7 43,220
W.C. Beckjord . . . . . . . . 5 8,950
6 23,020
Pennsylvania . . . . . . . . Armstrong . . . . . . . . . . 1 14,410
2 15,430
Brunner Island . . . . . . . 1 27,760
2 31,100
3 53,820
Cheswick . . . . . . . . . . 1 69,170
Conemaugh . . . . . . . . . . 1 59,790
2 66,450
Hatfield's Ferry . . . . . . 1 37,830
2 37,320
3 40,270
Martins Creek . . . . . . . . 1 12,660
2 12,820
Portland . . . . . . . . . . 1 5,940
2 10,230
Shawville . . . . . . . . . . 1 10,320
2 10,320
3 14,220
4 14,070
Sanbury . . . . . . . . . . . 3 8,760
4 11,450
Tennessee . . . . . . . . . . Allen . . . . . . . . . . . . 1 15,320
2 16,770
3 15,670
Cumberland . . . . . . . . . 1 86,700
2 94,840
Gallatin . . . . . . . . . . 1 17,870
2 17,310
3 20,020
4 21,260
342
State Plant Name Generator Phase I
Allowances
Johnsonville . . . . . . . . 1 7,790
2 8,040
3 8,410
4 7,990
5 8,240
6 7,890
7 8,980
8 8,700
9 7,080
10 7,550
West Virginia . . . . . . . . Albright . . . . . . . . . . 3 12,000
Fort Martin . . . . . . . . . 1 41,590
2 41,200
Harrison . . . . . . . . . . 1 48,620
2 46,150
3 41,500
Kammer . . . . . . . . . . . 1 18,740
2 19,460
3 17,390
Mitchell . . . . . . . . . . 1 43,980
2 45,510
Mount Storm . . . . . . . . . 1 43,720
2 35,580
3 42,430
Wisconsin . . . . . . . . . . Edgewater . . . . . . . . . . 4 24,750
La Crosse/Genoa . . . . . . . 3 22,700
Nelson Dewey . . . . . . . . 1 6,010
2 5,220
N. Oak Creek . . . . . . . . 1 5,140
2 5,370
3 6,320
4 7,510
Pulliam . . . . . . . . . . . 8 9,670
S. Oak Creek . . . . . . . . 5 12,040
6 16,180
7 15,790
8
(f) Energy Conservation and Renewable Energy.-
(1) Definitions.- As used in this subsection:
(A) Qualified energy conservation measure.- The term
"qualified energy conservation measure" means a cost
effective measure, as identified by the Administrator
in consultation with the Secretary of Energy, that
increases the efficiency of the use of electricity
provided by an electric utility to its customers.
(B) Qualified renewable energy.- The term "qualified
renewable energy" means energy derived from biomass,
343
solar, geothermal, or wind as identified by the
Administrator in consultation with the Secretary of
Energy.
(C) Electric utility.- The term "electric utility"
means any person, State agency, or Federal agency,
which sells electric energy.
(2) Allowances for emissions avoided through energy
conservation and renewable energy.-
(A) In general.- The regulations under paragraph (4)
of this subsection shall provide that for each ton of
sulfur dioxide emissions avoided by an electric
utility, during the applicable period, through the use
of qualified energy conservation measures or qualified
renewable energy, the Administrator shall allocate a
single allowance to such electric utility, on a first-
-come-first-served basis from the Conservation and
Renewable Energy Reserve established under subsection
(g), up to a total of 300,000 allowances for allocation
from such Reserve.
(B) Requirements for issuance.- The Administrator shall
allocate allowances to an electric utility under this
subsection only if all of the following requirements are
met:
(i) Such electric utility is paying for the qualified
energy conservation measures or qualified renewable
energy directly or through purchase from another
person.
(ii) The emissions of sulfur dioxide avoided through
the use of qualified energy conservation measures or
qualified renewable energy are quantified in accordance
with regulations promulgated by the Administrator under
this subsection.
(iii)(I) Such electric utility has adopted and is
implementing a least cost energy conservation and
electric power plan which evaluates a range of resourc-
es, including new power supplies, energy conservation,
and renewable energy resources, in order to meet
expected future demand at the lowest system cost.
(II) The qualified energy conservation measures or
qualified renewable energy, or both, are consistent
with that plan.
(III) Electric utilities subject to the jurisdiction
of a State regulatory authority must have such plan
approved by such authority. For electric utilities not
subject to the jurisdiction of a State regulatory
authority such plan shall be approved by the entity
with rate-making authority for such utility.
(iv) In the case of qualified energy conservation
measures undertaken by a State regulated electric
utility, the Secretary of Energy certifies that the
State regulatory authority with jurisdiction over the
electric rates of such electric utility has established
rates and charges which ensure that the net income of
such electric utility after implementation of specific
cost effective energy conservation measures is at least
342
as high as such net income would have been if the
energy conservation measures had not been implemented.
Upon the date of any such certification by the
Secretary of Energy, all allowances which, but for this
paragraph, would have been allocated under subparagraph
(A) before such date, shall be allocated to the
electric utility. This clause is not a requirement for
qualified renewable energy.
(v) Such utility or any subsidiary of the utility's
holding company owns or operates at least one affected
unit.
(C) Period of applicability.- Allowances under this
subsection shall be allocated only with respect to kilowatt
hours of electric energy saved by qualified energy conserva-
tion measures or generated by qualified renewable energy
after January 1, 1992 and before the earlier of (i) December
31, 2000, or (ii) the date on which any electric
utility steam generating unit owned or operated by the
electric utility to which the allowances are allocated
becomes subject to this title (including those sources that
elect to become affected by this title, pursuant to section
410).
(D) Determination of avoided emissions.-
(i) Application.- In order to receive allowances
under this subsection, an electric utility shall make
an application which-
(I) designates the qualified energy conservation
measures implemented and the qualified renewable energy
sources used for purposes of avoiding emissions,
(II) calculates, in accordance with subparagraphs (F)
and (G), the number of tons of emissions avoided by
reason of the implementation of such measures or the
use of such renewable energy sources; and
(III) demonstrates that the requirements of subpara-
graph (B) have been met.
Such application for allowances by a State-regulated
electric utility shall require approval by the State
regulatory authority with jurisdiction over such electric
utility. The authority shall review the application for
accuracy and compliance with this subsection and the rules
under this subsection. Electric utilities whose retail
rates are not subject to the jurisdiction of a State
regulatory authority shall apply directly to the Adminis-
trator for such approval.
(E) Avoided emissions from qualified energy conservation
measures.- For the purposes of this subsection, the emission
tonnage deemed avoided by reason of the implementation of
qualified energy conservation measures for any calendar year
shall be a tonnage equal to the product of multiplying-
(i) the kilowatt hours that would otherwise have been
supplied by the utility during such year in the absence of
such qualified energy conservation measures, by
(ii) 0.004,
and dividing by 2,000.
343
(F) Avoided emissions from the use of qualified renewable
energy.- The emissions tonnage deemed avoided by reason of the
use of qualified renewable energy by an electric utility for
any calendar year shall be a tonnage equal to the product of
multiplying-
(i) the actual kilowatt hours generated by, or purchased
from, qualified renewable energy, by
(ii) 0.004,
and dividing by 2,000.
(G) Prohibitions.- (i) No allowances shall be allocated
under this subsection for the implementation of programs
that are exclusively informational or educational in nature.
(ii) No allowances shall be allocated for energy conserva-
tion measures or renewable energy that were operational
before January 1, 1992.
(3) Savings provision.- Nothing in this subsection pre-
cludes a State or State regulatory authority from providing
additional incentives to utilities to encourage investment
in demand-side resources.
(4) Regulations.- Not later than 18 months after the date
of the enactment of the Clean Air Act Amendments of 1990 and
in conjunction with the regulations required to be
promulgated under subsections (b) and (c), the Administrator
shall, in consultation with the Secretary of Energy,
promulgate regulations under this subsection. Such
regulations shall list energy conservation measures and
renewable energy sources which may be treated as qualified
energy conservation measures and qualified renewable energy
for purposes of this subsection. Allowances shall only be
allocated if all requirements of this subsection and the
rules promulgated to implement this subsection are complied
with. The Administrator shall review the determinations of
each State regulatory authority under this subsection to
encourage consistency from electric utility to electric
utility and from State to State in accordance with the
Administrator's rules. The Administrator shall publish the
findings of this review no less than annually.
(g) Conservation and Renewable Energy Reserve.- The
Administrator shall establish a Conservation and Renewable Energy
Reserve under this subsection. Beginning on January 1, 1995, the
Administrator may allocate from the Conservation and Renewable
Energy Reserve an amount equal to a total of 300,000 allowances
for emissions of sulfur dioxide pursuant to section 403. In order
to provide 300,000 allowances for such reserve, in each year
beginning in calendar year 2000 and until calendar year 2009,
inclusive, the Administrator shall reduce each unit's basic Phase
II allowance allocation on the basis of its pro rata share of
30,000 allowances. If allowances remain in the reserve after
January 2, 2010, the Administrator shall allocate such allowances
for affected units under section 405 on a pro rata basis. For
purposes of this subsection, for any unit subject to the
emissions limitation requirements of section 405, the term "pro
rata basis" refers to the ratio which the reductions made in such
unit's allowances in order to establish the reserve under this
344
subsection bears to the total of such reductions for all such
units.
(h) Alternative Allowance Allocation for Units in Certain
Utility Systems With Optional Baseline.-
(1) Optional baseline for units in certain systems.- In
the case of a unit subject to the emissions limitation
requirements of this section which (as of the date of the
enactment of the Clean Air Act Amendments of 1990)-
(A) has an emission rate below 1.0 lbs/mmBtu,
(B) has decreased its sulfur dioxide emissions rate by
60 percent or greater since 1980, and
(C) is part of a utility system which has a weighted
average sulfur dioxide emissions rate for all fossil
fueled-fired units below 1.0 lbs/mmBtu,
at the election of the owner or operator of such unit, the
unit's baseline may be calculated (i) as provided under section
402(d), or (ii) by utilizing the unit's average annual fuel
consumption at a 60 percent capacity factor. Such election
shall be made no later than March 1, 1991.
(2) Allowance allocation.- Whenever a unit referred to in
paragraph (1) elects to calculate its baseline as provided in
clause (ii) of paragraph (1), the Administrator shall allocate
allowances for the unit pursuant to section 403(a)(1), this
section, and section 405 (as basic Phase II allowance alloca-
tions) in an amount equal to the baseline selected multiplied
by the lower of the average annual emission rate for such unit
in 1989, or 1.0 lbs./mmBtu. Such allowance allocation shall be
in lieu of any allocation of allowances under this section and
section 405.
[42 U.S.C. 7651c]
SEC. 405. PHASE II SULFUR DIOXIDE REQUIREMENTS.
(a) Applicability.- (1) After January 1, 2000, each existing
utility unit as provided below is subject to the limitations or
requirements of this section. Each utility unit subject to an
annual sulfur dioxide tonnage emission limitation under this
section is an affected unit under this title. Each source that
includes one or more affected units is an affected source. In the
case of an existing unit that was not in operation during
calendar year 1985, the emission rate for a calendar year after
1985, as determined by the Administrator, shall be used in lieu
of the 1985 rate. The owner or operator of any unit operated in
violation of this section shall be fully liable under this Act
for fulfilling the obligations specified in section 411 of this
title.
(2) In addition to basic Phase II allowance allocations, in
each year beginning in calendar year 2000 and ending in calendar
year 2009, inclusive, the Administrator shall allocate up to
530,000 Phase II bonus allowances pursuant to subsections (b)(2),
(c)(4), (d)(3)(A) and (B), and (h)(2) of this section and section
406. Not later than June 1, 1998, the Administrator shall
calculate, for each unit granted an extension pursuant to section
409 the difference between (A) the number of allowances allocated
for the unit in calendar year 2000, and (B) the product of the
unit's baseline multiplied by 1.20 lbs/mmBtu, divided by 2000,
and sum the computations. In each year, beginning in calendar
345
year 2000 and ending in calendar year 2009, inclusive, the
Administrator shall deduct from each unit's basic Phase II
allowance allocation its pro rata share of 10 percent of the sum
calculated pursuant to the preceding sentence.
(3) In addition to basic Phase II allowance allocations and
Phase II bonus allowance allocations, beginning January 1, 2000,
the Administrator shall allocate for each unit listed on Table A
in section 404 (other than units at Kyger Creek, Clifty Creek,
and Joppa Steam) and located in the States of Illinois, Indiana,
Ohio, Georgia, Alabama, Missouri, Pennsylvania, West Virginia,
Kentucky, or Tennessee allowances in an amount equal to 50,000
multiplied by the unit's pro rata share of the total number of
basic allowances
allocated for all units listed on Table A (other than units at
Kyger Creek, Clifty Creek, and Joppa Steam). Allowances allocated
pursuant to this paragraph shall not be subject to the 8,900,000
ton limitation in section 403(a).
(b) Units Equal to, or Above, 75 MWe and 1.20 lbs/mmBtu.- (1)
Except as otherwise provided in paragraph (3), after January 1,
2000, it shall be unlawful for any existing utility unit that
serves a generator with nameplate capacity equal to, or greater,
than 75 MWe and an actual 1985 emission rate equal to or greater
than 1.20 lbs/mmBtu to exceed an annual sulfur dioxide tonnage
emission limitation equal to the product of the unit's baseline
multiplied by an emission rate equal to 1.20 lbs/mmBtu, divided
by 2,000, unless the owner or operator of such unit holds
allowances to emit not less than the unit's total annual
emissions.
(2) In addition to allowances allocated pursuant to paragraph
(1) and section 403(a)(1) as basic Phase II allowance
allocations, beginning January 1, 2000, and for each calendar
year thereafter until and including 2009, the Administrator shall
allocate annually for each unit subject to the emissions
limitation requirements of paragraph (1) with an actual 1985
emissions rate greater than 1.20 lbs/mmBtu and less than 2.50
lbs/mmBtu and a baseline capacity factor of less than 60 percent,
allowances from the reserve created pursuant to subsection (a)(2)
in an amount equal to 1.20 lbs/mmBtu multiplied by 50 percent of
the difference, on a Btu basis, between the unit's baseline and
the unit's fuel consumption at a 60 percent capacity factor.
(3) After January 1, 2000, it shall be unlawful for any
existing utility unit with an actual 1985 emissions rate equal to
or greater than 1.20 lbs/mmBtu whose annual average fuel
consumption during 1985, 1986, and 1987 on a Btu basis exceeded
90 percent in the form of lignite coal which is located in a
State in which, as of July 1, 1989, no county or portion of a
county was designated nonattainment under section 107 of this Act
for any pollutant subject to the requirements of section 109 of
this Act to exceed an annual sulfur dioxide tonnage limitation
equal to the product of the unit's baseline multiplied by the
lesser of the unit's actual 1985 emissions rate or its allowable
1985 emissions rate, divided by 2,000, unless the owner or
operator of such unit holds allowances to emit not less than the
unit's total annual emissions.
346
(4) After January 1, 2000, the Administrator shall allocate
annually for each unit, subject to the emissions limitation
requirements of paragraph (1), which is located in a State with
an installed electrical generating capacity of more than
30,000,000 kw in 1988 and for which was issued a prohibition
order or a proposed prohibition order (from burning oil), which
unit subsequently converted to coal between January 1, 1980 and
December 31, 1985, allowances equal to the difference between (A)
the product of the unit's annual fuel consumption, on a Btu
basis, at a 65 percent capacity factor multiplied by the lesser
of its actual or allowable emissions rate during the first full
calendar year after conversion, divided by 2,000, and (B) the
number of allowances allocated for the unit pursuant to paragraph
(1): Provided, That the number of allowances allocated pursuant
to this paragraph shall not exceed an annual total of five
thousand.
If necessary to meeting the restriction imposed in the preceding
sentence the Administrator shall reduce, pro rata, the annual
allowances allocated for each unit under this paragraph.
(c) Coal or Oil-fired Units Below 75 MWe and Above 1.20 lbs/
mmBtu.- (1) Except as otherwise provided in paragraph (3), after
January 1, 2000, it shall be unlawful for a coal or oil-fired
existing utility unit that serves a generator with nameplate
capacity of less than 75 MWe and an actual 1985 emission rate
equal to, or greater than, 1.20 lbs/mmBtu and which is a unit
owned by a utility operating company whose aggregate nameplate
fossil fuel steam-electric capacity is, as of December 31, 1989,
equal to, or greater than, 250 MWe to exceed an annual sulfur
dioxide emissions limitation equal to the product of the unit's
baseline multiplied by an emission rate equal to 1.20 lbs/mmBtu,
divided by 2,000, unless the owner or operator of such unit holds
allowances to emit not less than the unit's total annual emis-
sions.
(2) After January 1, 2000, it shall be unlawful for a coal or
oil-fired existing utility unit that serves a generator with
nameplate capacity of less than 75 MWe and an actual 1985
emission rate equal to, or greater than, 1.20 lbs/mmBtu
(excluding units subject to section 111 of the Act or to a
federally enforceable emissions limitation for sulfur dioxide
equivalent to an annual rate of less than 1.20 lbs/mmBtu) and
which is a unit owned by a utility operating company whose
aggregate nameplate fossil fuel steam-electric capacity is, as of
December 31, 1989, less than 250 MWe, to exceed an annual sulfur
dioxide tonnage emissions limitation equal to the product of the
unit's baseline multiplied by the lesser of its actual 1985
emissions rate or its allowable 1985 emissions rate, divided by
2,000, unless the owner or operator of such unit holds allowances
to emit not less than the unit's total annual emissions.
(3) After January 1, 2000 it shall be unlawful for any existing
utility unit with a nameplate capacity below 75 MWe and an actual
1985 emissions rate equal to, or greater than, 1.20 lbs/mmBtu
which became operational on or before December 31, 1965, which is
owned by a utility operating company with, as of December 31,
1989, a total fossil fuel steam-electric generating capacity
greater than 250 MWe, and less than 450 MWe which serves fewer
347
than 78,000 electrical customers as of the date of enactment of
the Clean Air Act Amendments of 1990 to exceed an annual sulfur
dioxide emissions tonnage limitation equal to the product of its
baseline multiplied by the lesser of its actual or allowable 1985
emission rate, divided by 2,000, unless the owner or operator
holds allowances to emit not less than the units total annual
emissions. After January 1, 2010, it shall be unlawful for each
unit subject to the emissions limitation requirements of this
paragraph to exceed an annual emissions tonnage limitation equal
to the product of its baseline multiplied by an emissions rate of
1.20 lbs/mmBtu, divided by 2,000, unless the owner or operator
holds allowances to emit not less than the unit's total annual
emissions.
(4) In addition to allowances allocated pursuant to paragraph
(1) and section 403(a)(1) as basic Phase II allowance
allocations, beginning January 1, 2000, and for each calendar
year thereafter until and including 2009, inclusive, the
Administrator shall
allocate annually for each unit subject to the emissions limita-
tion requirements of paragraph (1) with an actual 1985 emissions
rate equal to, or greater than, 1.20 lbs/mmBtu and less than 2.50
lbs/mmBtu and a baseline capacity factor of less than 60 percent,
allowances from the reserve created pursuant to subsection (a)(2)
in an amount equal to 1.20 lbs/mmBtu multiplied by 50 percent of
the difference, on a Btu basis, between the unit's baseline and
the unit's fuel consumption at a 60 percent capacity factor.
(5) After January 1, 2000, it shall be unlawful for any
existing utility unit with a nameplate capacity below 75 MWe and
an actual 1985 emissions rate equal to, or greater than, 1.20
lbs/mmBtu which is part of an electric utility system which, as
of the date of the enactment of the Clean Air Act Amendments of
1990, (A) has at least 20 percent of its fossil-fuel capacity
controlled by flue gas desulfurization devices, (B) has more than
10 percent of its fossil-fuel capacity consisting of coal-fired
units of less than 75 MWe, and (C) has large units (greater than
400 MWe) all of which have difficult or very difficult FGD
Retrofit Cost Factors (according to the Emissions and the FGD
Retrofit Feasibility at the 200 Top Emitting Generating Stations,
prepared for the United States Environmental Protection Agency on
January 10, 1986) to exceed an annual sulfur dioxide emissions
tonnage limitation equal to the product of its baseline
multiplied by an emissions rate of 2.5 lbs/mmBtu, divided by
2,000, unless the owner or operator holds allowances to emit not
less than the unit's total annual emissions. After January 1,
2010, it shall be unlawful for each unit subject to the emissions
limitation requirements of this paragraph to exceed an annual
emissions tonnage limitation equal to the product of its baseline
multiplied by an emissions rate of 1.20 lbs/mmBtu, divided by
2,000, unless the owner or operator holds for use allowances to
emit not less than the unit's total annual emissions.
(d) Coal-fired Units Below 1.20 lbs/mmBtu.- (1) After January
1, 2000, it shall be unlawful for any existing coal-fired utility
unit the lesser of whose actual or allowable 1985 sulfur dioxide
emissions rate is less than 0.60 lbs/mmBtu to exceed an annual
sulfur dioxide tonnage emission limitation equal to the product
of the unit's baseline multiplied by (A) the lesser of 0.60
lbs/mmBtu or the unit's allowable 1985 emissions rate, and (B) a
numerical factor of 120 percent, divided by 2,000, unless the
348
owner or operator of such unit holds allowances to emit not less
than the unit's total annual emissions.
(2) After January 1, 2000, it shall be unlawful for any
existing coal-fired utility unit the lesser of whose actual or
allowable 1985 sulfur dioxide emissions rate is equal to, or
greater than, 0.60 lbs/mmBtu and less than 1.20 lbs/mmBtu to
exceed an annual sulfur dioxide tonnage emissions limitation
equal to the product of the unit's baseline multiplied by (A) the
lesser of its actual 1985 emissions rate or its allowable 1985
emissions rate, and (B) a numerical factor of 120 percent,
divided by 2,000, unless the owner or operator of such unit holds
allowances to emit not less than the unit's total annual
emissions.
(3)(A) In addition to allowances allocated pursuant to
paragraph (1) and section 403(a)(1) as basic Phase II allowance
allocations,
at the election of the designated representative of the operating
company, beginning January 1, 2000, and for each calendar year
thereafter until and including 2009, the Administrator shall
allocate annually for each unit subject to the emissions limita-
tion requirements of paragraph (1) allowances from the reserve
created pursuant to subsection (a)(2) in an amount equal to the
amount by which (i) the product of the lesser of 0.60 lbs/mmBtu
or the unit's allowable 1985 emissions rate multiplied by the
unit's baseline adjusted to reflect operation at a 60 percent
capacity factor, divided by 2,000, exceeds (ii) the number of
allowances allocated for the unit pursuant to paragraph (1) and
section 403(a)(1) as basic Phase II allowance allocations.
(B) In addition to allowances allocated pursuant to paragraph
(2) and section 403(a)(1) as basic Phase II allowance
allocations, at the election of the designated representative of
the operating company, beginning January 1, 2000, and for each
calendar year thereafter until and including 2009, the
Administrator shall allocate annually for each unit subject to
the emissions limitation requirements of paragraph (2) allowances
from the reserve created pursuant to subsection (a)(2) in an
amount equal to the amount by which (i) the product of the lesser
of the unit's actual 1985 emissions rate or its allowable 1985
emissions rate multiplied by the unit's baseline adjusted to
reflect operation at a 60 percent capacity factor, divided by
2,000, exceeds (ii) the number of allowances allocated for the
unit pursuant to paragraph (2) and section 403(a)(1) as basic
Phase II allowance allocations.
(C) An operating company with units subject to the emissions
limitation requirements of this subsection may elect the alloca-
tion of allowances as provided under subparagraphs (A) and (B).
Such election shall apply to the annual allowance allocation for
each and every unit in the operating company subject to the
emissions limitation requirements of this subsection. The
Administrator shall allocate allowances pursuant to subparagraphs
(A) and (B) only in accordance with this subparagraph.
(4) Notwithstanding any other provision of this section, at the
election of the owner or operator, after January 1, 2000, the
Administrator shall allocate in lieu of allocation, pursuant to
paragraph (1), (2), (3), (5), or (6), allowances for a unit
349
subject to the emissions limitation requirements of this subsec-
tion which commenced commercial operation on or after January 1,
1981 and before December 31, 1985, which was subject to, and in
compliance with, section 111 of the Act in an amount equal to the
unit's annual fuel consumption, on a Btu basis, at a 65 percent
capacity factor multiplied by the unit's allowable 1985 emissions
rate, divided by 2,000.
(5) For the purposes of this section, in the case of an oil-
and gas-fired unit which has been awarded a clean coal technology
demonstration grant as of January 1, 1991, by the United States
Department of Energy, beginning January 1, 2000, the
Administrator shall allocate for the unit allowances in an amount
equal to the unit's baseline multiplied by 1.20 lbs/mmbtu,
divided by 2,000.
(e) Oil and Gas-fired Units Equal to or Greater Than 0.60
lbs/mmBtu and Less Than 1.20 lbs/mmBtu.- After January 1, 2000,
it shall be unlawful for any existing oil and gas-fired utility
unit the lesser of whose actual or allowable 1985 sulfur dioxide
emission rate is equal to, or greater than, 0.60 lbs/mmBtu, but
less than 1.20 lbs/mmBtu to exceed an annual sulfur dioxide
tonnage limitation equal to the product of the unit's baseline
multiplied by (A) the lesser of the unit's allowable 1985
emissions rate or its actual 1985 emissions rate and (B) a
numerical factor of 120 percent divided by 2,000, unless the
owner or operator of such unit holds allowances to emit not less
than the unit's total annual emissions.
(f) Oil and Gas-fired Units Less Than 0.60 lbs/mmBtu.- (1)
After January 1, 2000, it shall be unlawful for any oil and
gas-fired existing utility unit the lesser of whose actual or
allowable 1985 emission rate is less than 0.60 lbs/mmBtu and
whose average annual fuel consumption during the period 1980
through 1989 on a Btu basis was 90 percent or less in the form of
natural gas to exceed an annual sulfur dioxide tonnage emissions
limitation equal to the product of the unit's baseline multiplied
by (A) the lesser of 0.60 lbs/mmBtu or the unit's allowable 1985
emissions, and (B) a numerical factor of 120 percent, divided by
2,000, unless the owner or operator of such unit holds allowances
to emit not less than the unit's total annual emissions.
(2) In addition to allowances allocated pursuant to paragraph
(1) as basic Phase II allowance allocations and section
403(a)(1), beginning January 1, 2000, the Administrator shall, in
the case of any unit operated by a utility that furnishes
electricity, electric energy, steam, and natural gas within an
area consisting of a city and 1 contiguous county, and in the
case of any unit owned by a State authority, the output of which
unit is furnished within that same area consisting of a city and
1 contiguous county, the Administrator shall allocate for each
unit in the utility its pro rata share of 7,000 allowances and
for each unit in the State authority its pro rata share of 2,000
allowances.
(g) Units That Commence Operation Between 1986 and December 31,
1995. (1) After January 1, 2000, it shall be unlawful for any
utility unit that has commenced commercial operation on or after
January 1, 1986, but not later than September 30, 1990 to exceed
an annual tonnage emission limitation equal to the product of the
350
unit's annual fuel consumption, on a Btu basis, at a 65 percent
capacity factor multiplied by the unit's allowable 1985 sulfur
dioxide emission rate (converted, if necessary, to pounds per
mmBtu), divided by 2,000 unless the owner or operator of such
unit holds allowances to emit not less than the unit's total
annual emissions.
(2) After January 1, 2000, the Administrator shall allocate
allowances pursuant to section 403 to each unit which is listed
in table B of this paragraph in an annual amount equal to the
amount specified in table B.
TABLE B
Unit
Allowances
Brandon Shores . . . . . . . . . . . . . . . . . . . 8,907
Miller 4 . . . . . . . . . . . . . . . . . . . . . . 9,197
TNP One 2 . . . . . . . . . . . . . . . . . . . . . 4,000
Zimmer 1 . . . . . . . . . . . . . . . . . . . . . . 18,458
Spruce 1 . . . . . . . . . . . . . . . . . . . . . . 7,647
Clover 1 . . . . . . . . . . . . . . . . . . . . . . 2,796
Clover 2 . . . . . . . . . . . . . . . . . . . . . . 2,796
Twin Oak 2 . . . . . . . . . . . . . . . . . . . . . 1,760
Twin Oak 1 . . . . . . . . . . . . . . . . . . . . . 9,158
Cross 1 . . . . . . . . . . . . . . . . . . . . . . 6,401
Malakoff 1 . . . . . . . . . . . . . . . . . . . . . 1,759
Notwithstanding any other paragraph of this subsection, for units
subject to this paragraph, the Administrator shall not allocate
allowances pursuant to any other paragraph of this subsection,
Provided that the owner or operator of a unit listed on Table B
may elect an allocation of allowances under another paragraph of
this subsection in lieu of an allocation under this paragraph.
(3) Beginning January 1, 2000, the Administrator shall allocate
to the owner or operator of any utility unit that commences
commercial operation, or has commenced commercial operation, on (continued)