Loading (50 kb)...'
(continued)
or after October 1, 1990, but not later than December 31, 1992
allowances in an amount equal to the product of the unit's annual
fuel consumption, on a Btu basis, at a 65 percent capacity factor
multiplied by the lesser of 0.30 lbs/mmBtu or the unit's
allowable sulfur dioxide emission rate (converted, if necessary,
to pounds per mmBtu), divided by 2,000.
(4) Beginning January 1, 2000, the Administrator shall allocate
to the owner or operator of any utility unit that has commenced
construction before December 31, 1990 and that commences commer-
cial operation between January 1, 1993 and December 31, 1995,
allowances in an amount equal to the product of the unit's annual
fuel consumption, on a Btu basis, at a 65 percent capacity factor
multiplied by the lesser of 0.30 lbs/mmBtu or the unit's
allowable sulfur dioxide emission rate (converted, if necessary,
to pounds per mmBtu), divided by 2,000.
(5) After January 1, 2000, it shall be unlawful for any
existing utility unit that has completed conversion from
predominantly gas fired existing operation to coal fired
operation between January 1, 1985 and December 31, 1987, for
which there has been allocated a proposed or final prohibition
order pursuant to section 301(b) of the Powerplant and Industrial
351
Fuel Use Act of 1978 (42 U.S.C. 8301 et seq, repealed 1987) to
exceed an annual sulfur dioxide tonnage emissions limitation
equal to the product of the unit's annual fuel consumption, on a
Btu basis, at a 65 percent capacity factor multiplied by the
lesser of 1.20 lbs/mmBtu or the unit's allowable 1987 sulfur
dioxide emissions rate, divided by 2,000, unless the owner or
operator of such unit has obtained allowances equal to its actual
emissions.
(6)(A) Unless the Administrator has approved a designation of
such facility under section 410, the provisions of this title
shall not apply to a "qualifying small power production facility"
or "qualifying cogeneration facility" (within the meaning of
section 3(17)(C) or 3(18)(B) of the Federal Power Act) or to a
"new independent power production facility" as defined in section
416 except that clause (iii) of such definition in section 416
shall not apply for purposes of this paragraph if, as of the date
of enactment,
(i) an applicable power sales agreement has been executed;
(ii) the facility is the subject of a State regulatory
authority order requiring an electric utility to enter into
a power sales agreement with, purchase capacity from, or
(for purposes of establishing terms and conditions of the
electric utility's purchase of power) enter into arbitration
concerning, the facility;
(iii) an electric utility has issued a letter of intent or
similar instrument committing to purchase power from the
facility at a previously offered or lower price and a power
sales agreement is executed within a reasonable period of
time; or
(iv) the facility has been selected as a winning bidder in
a utility competitive bid solicitation.
(h) Oil and Gas-fired Units Less Than 10 Percent Oil Consumed.-
(1) After January 1, 2000, it shall be unlawful for any oil- and
gas-fired utility unit whose average annual fuel consumption
during the period 1980 through 1989 on a Btu basis exceeded 90
percent in the form of natural gas to exceed an annual sulfur
dioxide tonnage limitation equal to the product of the unit's
baseline multiplied by the unit's actual 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 emis-
sions.
(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) allowances from the
reserve created pursuant to subsection (a)(2) in an amount equal
to the unit's baseline multiplied by 0.050 lbs/mmBtu, divided by
2,000.
(3) In addition to allowances allocated pursuant to paragraph
(1) and section 403(a)(1), beginning January 1, 2010, the
Administrator shall allocate annually for each unit subject to
the emissions limitation requirements of paragraph (1) allowances
in an amount equal to the unit's baseline multiplied by 0.050
lbs/mmBtu, divided by 2,000.
352
(i) Units in High Growth States.- (1) In addition to
allowances allocated pursuant to this section and section
403(a)(1) as basic Phase II allowance allocations, beginning
January 1, 2000, the Administrator shall allocate annually
allowances for each unit, subject to an emissions limitation
requirement under this section, and located in a State that-
(A) has experienced a growth in population in excess of 25
percent between 1980 and 1988 according to State Population
and Household Estimates, With Age, Sex, and Components of
Change: 1981091988 allocated by the United States Department
of Commerce, and
(B) had an installed electrical generating capacity of
more than 30,000,000 kw in 1988,
in an amount equal to the difference between (A) the number of
allowances that would be allocated for the unit pursuant to the
emissions limitation requirements of this section applicable to
the unit adjusted to reflect the unit's annual average fuel
consumption on a Btu basis of any three consecutive calendar
years between 1980 and 1989 (inclusive) as elected by the owner
or operator and (B) the number of allowances allocated for the
unit pursuant to the emissions limitation requirements of this
section: Provided, That the number of allowances allocated
pursuant to this subsection shall not exceed an annual total of
40,000. If necessary to meeting the 40,000 allowance restriction
imposed under this subsection the Administrator shall reduce, pro
rata, the additional annual allowances allocated to each unit
under this subsection.
(2) Beginning January 1, 2000, in addition to allowances
allocated pursuant to this section and section 403(a)(1) as basic
Phase II allowance allocations, the Administrator shall allocate
annually for each unit subject to the emissions limitation
requirements of subsection (b)(1), (A) the lesser of whose actual
or allowable 1980 emissions rate has declined by 50 percent or
more as of the date of enactment of the Clean Air Act Amendments
of 1990, (B) whose actual emissions rate is less than 1.2
lbs/mmBtu as of January 1, 2000, (C) which commenced operation
after January 1, 1970, (D) which is owned by a utility company
whose combined commercial and industrial kilowatt-hour sales have
increased by more than 20 percent between calendar year 1980 and
the date of enactment of the Clean Air Act Amendments of 1990,
and (E) whose company-wide fossil-fuel sulfur dioxide emissions
rate has declined 40 per centum or more from 1980 to 1988,
allowances in an amount equal to the difference between (i) the
number of allowances that would be allocated for the unit
pursuant to the emissions limitation requirements of subsection
(b)(1) adjusted to reflect the unit's annual average fuel
consumption on a Btu basis for any three consecutive years
between 1980 and 1989 (inclusive) as elected by the owner or
operator and (ii) the number of allowances allocated for the unit
pursuant to the emissions limitation requirements of subsection
(b)(1): Provided, That the number of allowances allocated
pursuant to this paragraph shall not exceed an annual total of
5,000. If necessary to meeting the 5,000 allowance restriction
imposed in the last clause of the preceding sentence the
Administrator shall reduce, pro rata, the additional allowances
allocated to each unit pursuant to this paragraph.
(j) Certain Municipally Owned Power Plants.- Beginning January
1, 2000, in addition to allowances allocated pursuant to this
353
section and section 403(a)(1) as basic Phase II allowance
allocations, the Administrator shall allocate annually for each
existing municipally owned oil and gas-fired utility unit with
nameplate capacity equal to, or less than, 40 MWe, the lesser of
whose actual or allowable 1985 sulfur dioxide emission rate is
less than 1.20 lbs/mmBtu, allowances in an amount equal to the
product of the unit's annual fuel consumption on a Btu basis at a
60 percent capacity factor multiplied by the lesser of its
allowable 1985 emission rate or its actual 1985 emission rate,
divided by 2,000.
[42 U.S.C. 7651d]
SEC. 406. ALLOWANCES FOR STATES WITH EMISSIONS RATES AT OR BELOW
0.80LBS/MMBTU.
(a) Election of Governor.- In addition to basic Phase II
allowance allocations, upon the election of the Governor of any
State, with a 1985 state-wide annual sulfur dioxide emissions
rate equal to or less than, 0.80 lbs/mmBtu, averaged over all
fossil fuel-fired utility steam generating units, beginning
January 1, 2000, and for each calendar year thereafter until and
including 2009, the Administrator shall allocate, in lieu of
other Phase II bonus allowance allocations, allowances from the
reserve created pursuant to section 405(a)(2) to all such units
in the State in an amount equal to 125,000 multiplied by the
unit's pro rata share of electricity generated in calendar year
1985 at fossil fuel-fired utility steam units in all States
eligible for the election.
(b) Notification of Administrator.- Pursuant to section
403(a)(1), each Governor of a State eligible to make an election
under paragraph (a) shall notify the Administrator of such
election. In the event that the Governor of any such State fails
to notify the Administrator of the Governor's elections, the
Administrator shall allocate allowances pursuant to section 405.
(c) Allowances After January 1, 2010.- After January 1, 2010,
the Administrator shall allocate allowances to units subject to
the provisions of this section pursuant to section 405.
[42 U.S.C. 7651e]
SEC. 407. NITROGEN OXIDES EMISSION REDUCTION PROGRAM.
(a) Applicability.- On the date that a coal-fired utility unit
becomes an affected unit pursuant to sections 404, 405, 409, or
on the date a unit subject to the provisions of section 404(d) or
409(b), must meet the SO 2 reduction requirements, each such unit
shall become an affected unit for purposes of this section and
shall be subject to the emission limitations for nitrogen oxides
set forth herein.
(b) Emission Limitations.- (1) Not later than eighteen months
after enactment of the Clean Air Act Amendments of 1990, the
Administrator shall by regulation establish annual allowable
emission limitations for nitrogen oxides for the types of utility
boilers listed below, which limitations shall not exceed the
rates listed below: Provided, That the Administrator may set a
rate higher than that listed for any type of utility boiler if
the Administrator finds that the maximum listed rate for that
boiler type cannot be achieved using low NOx burner technology.
The maximum allowable emission rates are as follows:
354
(A) for tangentially fired boilers, 0.45 lb/mmBtu;
(B) for dry bottom wall-fired boilers (other than units
applying cell burner technology), 0.50 lb/mmBtu.
After January 1, 1995, it shall be unlawful for any unit that is
an affected unit on that date and is of the type listed in this
paragraph to emit nitrogen oxides in excess of the emission rates
set by the Administrator pursuant to this paragraph.
(2) Not later than January 1, 1997, the Administrator shall, by
regulation, establish allowable emission limitations on a
lb/mmBtu, annual average basis, for nitrogen oxides for the
following types of utility boilers:
(A) wet bottom wall-fired boilers;
(B) cyclones;
(C) units applying cell burner technology;
(D) all other types of utility boilers.
The Administrator shall base such rates on the degree of
reduction achievable through the retrofit application of the best
system of continuous emission reduction, taking into account
available technology, costs and energy and environmental impacts;
and which is comparable to the costs of nitrogen oxides controls
set pursuant to subsection (b)(1). Not later than January 1,
1997, the Administrator may revise the applicable emission
limitations for tangentially fired and dry bottom, wall-fired
boilers (other than cell burners) to be more stringent if the
Administrator determines that more effective low NOx burner
technology is available: Provided, That, no unit that is an
affected unit pursuant to section 404 and that is subject to the
requirements of subsection (b) (1), shall be subject to the
revised emission limitations, if any.
(c) Revised Performance Standards.- (1) Not later than January
1, 1993, the Administrator shall propose revised standards of
performance to section 111 for nitrogen oxides emissions from
fossil-fuel fired steam generating units, including both electric
utility and nonutility units. Not later than January 1, 1994, the
Administrator shall promulgate such revised standards of perfor-
mance. Such revised standards of performance shall reflect
improvements in methods for the reduction of emissions of oxides
of nitrogen.
(d) Alternative Emission Limitations.- The permitting authority
shall, upon request of an owner or operator of a unit subject to
this section, authorize an emission limitation less stringent
than the applicable limitation established under subsection
(b)(1) or (b)(2) upon a determination that-
(1) a unit subject to subsection (b)(1) cannot meet the
applicable limitation using low NOx burner technology; or
(2) a unit subject to subsection (b)(2) cannot meet the
applicable rate using the technology on which the
Administrator based the applicable emission limitation.
The permitting authority shall base such determination upon a
showing satisfactory to the permitting authority, in accordance
with regulations established by the Administrator not later than
eighteen months after enactment of the Clean Air Act Amendments
of 1990, that the owner or operator-
(1) has properly installed appropriate control equipment
designed to meet the applicable emission rate;
355
(2) has properly operated such equipment for a period of
fifteen months (or such other period of time as the Administra-
tor determines through the regulations), and provides operating
and monitoring data for such period demonstrating that the unit
cannot meet the applicable emission rate; and
(3) has specified an emission rate that such unit can meet
on an annual average basis.
The permitting authority shall issue an operating permit for the
unit in question, in accordance with section 408 and part B of
title III-
(i) that permits the unit during the demonstration period
referred to in subparagraph (2) above, to emit at a rate in
excess of the applicable emission rate;
(ii) at the conclusion of the demonstration period to
revise the operating permit to reflect the alternative
emission rate demonstrated in paragraphs (2) and (3) above.
Units subject to subsection (b)(1) for which an alternative
emission limitation is established shall not be required to
install any additional control technology beyond low NOx burners.
Nothing in this section shall preclude an owner or operator from
installing and operating an alternative NOx control technology
capable of achieving the applicable emission limitation. If the
owner or operator of a unit subject to the emissions limitation
requirements of subsection (b)(1) demonstrates to the
satisfaction of the Administrator that the technology necessary
to meet such requirements is not in adequate supply to enable its
installation and operation at the unit, consistent with system
reliability, by January 1, 1995, then the Administrator shall
extend the deadline for compliance for the unit by a period of 15
months. Any owner or operator may petition the Administrator to
make a determination under the previous sentence. The
Administrator shall grant or deny such petition within 3 months
of submittal.
(e) Emissions Averaging.- In lieu of complying with the
applicable emission limitations under subsection (b) (1), (2), or
(d), the owner or operator of two or more units subject to one or
more of the applicable emission limitations set pursuant to these
sections, may petition the permitting authority for alternative
contemporaneous annual emission limitations for such units that
ensure that (1) the actual annual emission rate in pounds of
nitrogen oxides per million Btu averaged over the units in
question is a rate that is less than or equal to (2) the Btu--
weighted average annual emission rate for the same units if they
had been operated, during the same period of time, in compliance
with limitations set in accordance with the applicable emission
rates set pursuant to subsections (b) (1) and (2).
If the permitting authority determines, in accordance with
regulations issued by the Administrator not later than eighteen
months after enactment of the Clean Air Act Amendments of 1990;
that the conditions in the paragraph above can be met, the
permitting authority shall issue operating permits for such
units, in accordance with section 408 and part B of title III,
that allow alternative contemporaneous annual emission
limitations. Such
emission limitations shall only remain in effect while both units
continue operation under the conditions specified in their
respective operating permits.
[42 U.S.C. 7651f]
356
SEC. 408. PERMITS AND COMPLIANCE PLANS.
(a) Permit Program.- The provisions of this title shall be
implemented, subject to section 403, by permits issued to units
subject to this title (and enforced) in accordance with the
provisions of title V, as modified by this title. Any such permit
issued by the Administrator, or by a State with an approved
permit program, shall prohibit-
(1) annual emissions of sulfur dioxide in excess of the
number of allowances to emit sulfur dioxide the owner or
operator, or the designated representative of the owners or
operators, of the unit hold for the unit,
(2) exceedances of applicable emissions rates,
(3) the use of any allowance prior to the year for which
it was allocated, and
(4) contravention of any other provision of the permit.
Permits issued to implement this title shall be issued for a
period of 5 years, notwithstanding title V. No permit shall be
issued that is inconsistent with the requirements of this title,
and title V as applicable.
(b) Compliance Plan.- Each initial permit application shall be
accompanied by a compliance plan for the source to comply with
its requirements under this title. Where an affected source
consists of more than one affected unit, such plan shall cover
all such units, and for purposes of section 502(c), such source
shall be considered a "facility". Nothing in this section
regarding compliance plans or in title V shall be construed as
affecting allowances. Except as provided under subsection
(c)(1)(B), submission of a statement by the owner or operator, or
the designated representative of the owners and operators, of a
unit subject to the emissions limitation requirements of sections
404, 405, and 407, that the unit will meet the applicable
emissions limitation requirements of such sections in a timely
manner or that, in the case of the emissions limitation
requirements of sections 404 and 405, the owners and operators
will hold allowances to emit not less than the total annual
emissions of the unit, shall be deemed to meet the proposed and
approved compliance planning requirements of this section and
title V, except that, for any unit that will meet the
requirements of this title by means of an alternative method of
compliance authorized under section 404 (b), (c), (d), or (f)
section 407 (d) or (e), section 409 and section 410, the proposed
and approved compliance plan, permit application and permit shall
include, pursuant to regulations promulgated by the
Administrator, for each alternative method of compliance a
comprehensive description of the schedule and means by which the
unit will rely on one or more alternative methods of compliance
in the manner and time authorized under this title. Recordation
by the Administrator of transfers of allowances shall amend
automatically all applicable proposed or approved permit
applications, compliance plans and permits. The Administrator may
also require-
(1) for a source, a demonstration of attainment of
national ambient air quality standards, and
357
(2) from the owner or operator of two or more affected
sources, an integrated compliance plan providing an overall
plan for achieving compliance at the affected sources.
(c) First Phase Permits.- The Administrator shall issue
permits to affected sources under sections 404 and 407.
(1) Permit application and compliance plan.- (A) Not
later than 27 months after the date of the enactment of the
Clean Air Act Amendments of 1990, the designated
representative of the owners or operators, or the owner and
operator, of each affected source under sections 404 and 407
shall submit a permit application and compliance plan for
that source in accordance with regulations issued by the
Administrator under paragraph (3). The permit application
and the compliance plan shall be binding on the owner or
operator or the designated representative of owners and
operators for purposes of this title and section 402(a), and
shall be enforceable in lieu of a permit until a permit is
issued by the Administrator for the source.
(B) In the case of a compliance plan for an affected
source under sections 404 and 407 for which the owner or
operator proposes to meet the requirements of that section
by reducing utilization of the unit as compared with its
baseline or by shutting down the unit, the owner or operator
shall include in the proposed compliance plan a
specification of the unit or units that will provide
electrical generation to compensate for the reduced output
at the affected source, or a demonstration that such reduced
utilization will be accomplished through energy conservation
or improved unit efficiency. The unit to be used for such
compensating generation, which is not otherwise an affected
unit under sections 404 and 407, shall be deemed an affected
unit under section 404, subject to all of the requirements
for such units under this title, except that allowances
shall be allocated to such compensating unit in the amount
of an annual 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.
(2) EPA action on compliance plans.- The Administrator
shall review each proposed compliance plan to determine
whether it satisfies the requirements of this title, and
shall approve or disapprove such plan within 6 months after
receipt of a complete submission. If a plan is disapproved,
it may be resubmitted for approval with such changes as the
Administrator shall require consistent with the requirements
of this title and within such period as the Administrator
prescribes as part of such disapproval.
(3) Regulations; issuance of permits.- Not later than 18
months after the date of the enactment of the Clean Air Act
Amendments of 1990, the Administrator shall promulgate
regulations, in accordance with title V, to implement a
Federal permit program to issue permits for affected sources
under this title. Following promulgation, the Administrator
shall issue a permit to implement the requirements of
section
404 and the allowances provided under section 403 to the
owner or operator of each affected source under section 404.
358
Such a permit shall supersede any permit application and
compliance plan submitted under paragraph (1).
(4) Fees.- During the years 1995 through 1999 inclusive,
no fee shall be required to be paid under section 502(b)(3)
or under section 110(a)(2)(L) with respect to emissions from
any unit which is an affected unit under section 404.
(d) Second Phase Permits.- (1) To provide for permits for (A)
new electric utility steam generating units required under
section 403(e) to have allowances, (B) affected units or sources
under section 405, and (C) existing units subject to nitrogen
oxide emission reductions under section 407, each State in which
one or more such units or sources are located shall submit in
accordance with title V, a permit program for approval as
provided by that title. Upon approval of such program, for the
units or sources subject to such approved program the
Administrator shall suspend the issuance of permits as provided
in title V.
(2) The owner or operator or the designated representative of
each affected source under section 405 shall submit a permit
application and compliance plan for that source to the permitting
authority, not later than January 1, 1996.
(3) Not later than December 31, 1997, each State with an
approved permit program shall issue permits to the owner or
operator, or the designated representative of the owners and
operators, of affected sources under section 405 that satisfy the
requirements of title V and this title and that submitted to such
State a permit application and compliance plan pursuant to
paragraph (2). In the case of a State without an approved permit
program by July 1, 1996, the Administrator shall, not later than
January 1, 1998, issue a permit to the owner or operator or the
designated representative of each such affected source. In the
case of affected sources for which applications and plans are
timely received under paragraph (2), the permit application and
the compliance plan, including amendments thereto, shall be
binding on the owner or operator or the designated representative
of the owners or operators and shall be enforceable as a permit
for purposes of this title and title V until a permit is issued
by the permitting authority for the affected source. The
provisions of section 558(c) of title V of the United States Code
(relating to renewals) shall apply to permits issued by a
permitting authority under this title and title V.
(4) The permit issued in accordance with this subsection for an
affected source shall provide that the affected units at the
affected source may not emit an annual tonnage of sulfur dioxide
in excess of the number of allowances to emit sulfur dioxide the
owner or operator or designated representative hold for the unit.
(e) New Units.- The owner or operator of each source that
includes a new electric utility steam generating unit shall
submit a permit application and compliance plan to the permitting
authority not later than 24 months before the later of (1)
January 1, 2000, or (2) the date on which the unit commences
operation. The permitting authority shall issue a permit to the
owner or
operator, or the designated representative thereof, of the unit
that satisfies the requirements of title V and this title.
359
(f) Units Subject to Certain Other Limits.- The owner or
operator, or designated representative thereof, of any unit
subject to an emission rate requirement under section 407 shall
submit a permit application and compliance plan for such unit to
the permitting authority, not later than January 1, 1998. The
permitting authority shall issue a permit to the owner or
operator that satisfies the requirements of title V and this
title, including any appropriate monitoring and reporting
requirements.
(g) Amendment of Application and Compliance Plan.- At any time
after the submission of an application and compliance plan under
this section, the applicant may submit a revised application and
compliance plan, in accordance with the requirements of this
section. In considering any permit application and compliance
plan under this title, the permitting authority shall ensure
coordination with the applicable electric ratemaking authority,
in the case of regulated utilities, and with unregulated public
utilities.
(h) Prohibition.- (1) It shall be unlawful for an owner or
operator, or designated representative, required to submit a
permit application or compliance plan under this title to fail to
submit such application or plan in accordance with the deadlines
specified in this section or to otherwise fail to comply with
regulations implementing this section.
(2) It shall be unlawful for any person to operate any source
subject to this title except in compliance with the terms and
requirements of a permit application and compliance plan (includ-
ing amendments thereto) or permit issued by the Administrator or
a State with an approved permit program. For purposes of this
subsection, compliance, as provided in section 504(f), with a
permit issued under title V which complies with this title for
sources subject to this title shall be deemed compliance with
this subsection as well as section 502(a).
(3) In order to ensure reliability of electric power, nothing
in this title or title V shall be construed as requiring
termination of operations of an electric utility steam generating
unit for failure to have an approved permit or compliance plan,
except that any such unit may be subject to the applicable
enforcement provisions of section 113.
(i) Multiple Owners.- No permit shall be issued under this
section to an affected unit until the designated representative
of the owners or operators has filed a certificate of
representation with regard to matters under this title, including
the holding and distribution of allowances and the proceeds of
transactions involving allowances. Where there are multiple
holders of a legal or equitable title to, or a leasehold interest
in, such a unit, or where a utility or industrial customer
purchases power from an affected unit (or units) under
life-of-the-unit, firm power contractual arrangements, the
certificate shall state (1) that allowances and the proceeds of
transactions involving allowances will be deemed to be held or
distributed in proportion to each holder's legal, equitable,
leasehold, or contractual reservation or entitlement, or (2) if
such multiple holders have expressly provided for a different
distribution of allowances by contract,
360
that allowances and the proceeds of transactions involving
allowances will be deemed to be held or distributed in accordance
with the contract. A passive lessor, or a person who has an
equitable interest through such lessor, whose rental payments are
not based, either directly or indirectly, upon the revenues or
income from the affected unit shall not be deemed to be a holder
of a legal, equitable, leasehold, or contractual interest for the
purpose of holding or distributing allowances as provided in this
subsection, during either the term of such leasehold or thereaf-
ter, unless expressly provided for in the leasehold agreement.
Except as otherwise provided in this subsection, where all legal
or equitable title to or interest in an affected unit is held by
a single person, the certification shall state that all
allowances received by the unit are deemed to be held for that
person.
[42 U.S.C. 7651g]
SEC. 409. REPOWERED SOURCES.
(a) Availability.- Not later than December 31, 1997, the owner
or operator of an existing unit subject to the emissions limita-
tion requirements of section 405 (b) and (c) may demonstrate to
the permitting authority that one or more units will be repowered
with a qualifying clean coal technology to comply with the
requirements under section 405. The owner or operator shall,as
part of any such demonstration, provide, not later than January
1, 2000, satisfactory documentation of a preliminary design and
engineering effort for such repowering and an executed and
binding contract for the majority of the equipment to repower
such unit and such other information as the Administrator may
require by regulation. The replacement of an existing utility
unit with a new utility unit using a repowering technology
referred to in section 402(2) which is located at a different
site, shall be treated as repowering of the existing unit for
purposes of this title, if-
(1) the replacement unit is designated by the owner or
operator to replace such existing unit, and
(2) the existing unit is retired from service on or before
the date on which the designated replacement unit enters
commercial operation.
(b) Extension.- (1) An owner or operator satisfying the
requirements of subsection (a) shall be granted an extension of
the emission limitation requirement compliance date for that unit
from January 1, 2000, to December 31, 2003. The extension shall
be specified in the permit issued to the source under section
408, together with any compliance schedule and other requirements
necessary to meet second phase requirements by the extended date.
Any unit that is granted an extension under this section shall
not be eligible for a waiver under section 111(j) of this Act,
and shall continue to be subject to requirements under this title
as if it were a unit subject to section 405.
(2) If (A) the owner or operator of an existing unit has been
granted an extension under paragraph (1) in order to repower such
unit with a clean coal unit, and (B) such owner or operator
demonstrates to the satisfaction of the Administrator that the
repowering technology to be utilized by such unit has been
361
properly constructed and tested on such unit, but nevertheless
has
been unable to achieve the emission reduction limitations and is
economically or technologically infeasible, such existing unit
may be retrofitted or repowered with equipment or facilities
utilizing another clean coal technology or other available
control technology.
(c) Allowances.- (1) For the period of the extension under
this section, the Administrator shall allocate to the owner or
operator of the affected unit, annual allowances for sulfur
dioxide equal to the affected unit's baseline multiplied by the
lesser of the unit's federally approved State Implementation Plan
emissions limitation or its actual emission rate for 1995 in lieu
of any other allocation. Such allowances may not be transferred
or used by any other source to meet emission requirements under
this title. The source owner or operator shall notify the
Administrator sixty days in advance of the date on which the
affected unit for which the extension has been granted is to be
removed from operation to install the repowering technology.
(2) Effective on that date, the unit shall be subject to the
requirements of section 405. Allowances for the year in which the
unit is removed from operation to install the repowering
technology shall be calculated as the product of the unit's
baseline multiplied by 1.20 lbs/mmBtu, divided by 2,000, and
prorated accordingly, and are transferable.
(3) Allowances for such existing utility units for calendar
years after the year the repowering is complete shall be
calculated as the product of the existing unit's baseline
multiplied by 1.20 lbs/mmBtu, divided by 2,000.
(4) Notwithstanding the provisions of section 403 (a) and (e),
allowances shall be allocated under this section for a designated
replacement unit which replaces an existing unit (as provided in
the last sentence of subsection (a)) in lieu of any further
allocations of allowances for the existing unit.
(5) For the purpose of meeting the aggregate emissions limita-
tion requirement set forth in section 403(a)(1), the units with
an extension under this subsection shall be treated in each
calendar year during the extension period as holding allowances
allocated under paragraph (3).
(d) Control Requirements.- Any unit qualifying for an extension
under this section that does not increase actual hourly emissions
for any pollutant regulated under the Act shall not be subject to
any standard of performance under section 111 of this Act.
Notwithstanding the provisions of this subsection, no new unit
(1) designated as a replacement for an existing unit, (2)
qualifying for the extension under subsection (b), and (3)
located at a different site than the existing unit shall receive
an exemption from the requirements imposed under section 111.
(e) Expedited Permitting.- State permitting authorities and,
where applicable, the Administrator, are encouraged to give
expedited consideration to permit applications under parts C and
D of title I of this Act for any source qualifying for an
extension under this section.
362
(f) Prohibition.- It shall be unlawful for the owner or
operator of a repowered source to fail to comply with the
requirement of this section, or any regulations of permit
requirements to implement this section, including the prohibition
against emitting sulfur dioxide in excess of allowances held.
[42 U.S.C. 7651h]
SEC. 410. ELECTION FOR ADDITIONAL SOURCES.
(a) Applicability.- The owner or operator of any unit that is
not, nor will become, an affected unit under section 403(e), 404,
or 405, or that is a process source under subsection (d), that
emits sulfur dioxide, may elect to designate that unit or source
to become an affected unit and to receive allowances under this
title. An election shall be submitted to the Administrator for
approval, along with a permit application and proposed compliance
plan in accordance with section 408. The Administrator shall
approve a designation that meets the requirements of this
section, and such designated unit, or source, shall be allocated
allowances, and be an affected unit for purposes of this title.
(b) Establishment of Baseline.- The baseline for a unit
designated under this section shall be established by the
Administrator by regulation, based on fuel consumption and
operating data for the unit for calendar years 1985, 1986, and
1987, or if such data is not available, the Administrator may
prescribe a baseline based on alternative representative data.
(c) Emission Limitations.- Annual emissions limitations for
sulfur dioxide shall be equal to the product of the baseline
multiplied by the lesser of the unit's 1985 actual or allowable
emission rate in lbs/mmBtu, or, if the unit did not operate in
1985, by the lesser of the unit's actual or allowable emission
rate for a calendar year after 1985 (as determined by the
Administrator), divided by 2,000.
(d) Process Sources.- Not later than 18 months after enactment
of the Clean Air Act Amendments of 1990, the Administrator shall
establish a program under which the owner or operator of a
process source that emits sulfur dioxide may elect to designate
that source as an affected unit for the purpose of receiving
allowances under this title. The Administrator shall, by
regulation, define the sources that may be designated; specify
the emissions limitation; specify the operating, emission
baseline, and other data requirements; prescribe CEMS or other
monitoring requirements; and promulgate permit, reporting, and
any other requirements necessary to implement such a program.
(e) Allowances and Permits.- The Administrator shall issue
allowances to an affected unit under this section in an amount
equal to the emissions limitation calculated under subsection (c)
or (d), in accordance with section 403. Such allowance may be
used in accordance with, and shall be subject to,the provisions
of section 403. Affected sources under this section shall be
subject to the requirements of sections 403, 408, 411, 412, 413,
and 414.
(f) Limitation.- Any unit designated under this section shall
not transfer or bank allowances produced as a result of reduced
utilization or shutdown, except that, such allowances may be
transferred or carried forward for use in subsequent years to the
extent that the reduced utilization or shutdown results from the
363
replacement of thermal energy from the unit designated under this
section, with thermal energy generated by any other unit or units
subject to the requirements of this title, and the designated
unit's allowances are transferred or carried forward for use at
such other replacement unit or units. In no case may the Adminis-
trator allocate to a source designated under this section
allowances in an amount greater than the emissions resulting from
operation of the source in full compliance with the requirements
of this Act. No such allowances shall authorize operation of a
unit in violation of any other requirements of this Act.
(g) Implementation.- The Administrator shall issue regulations
to implement this section not later than eighteen months after
enactment of the Clean Air Act Amendments of 1990.
(h) Small Diesel Refineries.- The Administrator shall issue
allowances to owners or operators of small diesel refineries who
produce diesel fuel after October 1, 1993, meeting the require-
ments of subsection 211(i) of this Act.
(1) Allowance period.- Allowances may be allocated under this
subsection only for the period from October 1, 1993, through
December 31, 1999.
(2) Allowance determination.- The number of allowances
allocated pursuant to this paragraph shall equal the annual
number of pounds of sulfur dioxide reduction attributable to
desulfurization by a small refinery divided by 2,000. For the
purposes of this calculation, the concentration of sulfur removed
from diesel fuel shall be the difference between 0.274 percent
(by weight) and 0.050 percent (by weight).
(3) Refinery eligibility.- As used in this subsection, the term
"small refinery" shall mean a refinery or portion of a refinery-
(A) which, as of the date of enactment of the Clean Air
Act Amendments of 1990, has bona fide crude oil throughput
of less than 18,250,000 barrels per year, as reported to the
Department of Energy, and
(B) which, as of the date of enactment of the Clean Air
Act Amendments of 1990, is owned or controlled by a refiner
with a total combined bona fide crude oil throughput of less
than 50,187,500 barrels per year, as reported to the
Department of Energy.
(4) Limitation per refinery.- The maximum number of allowances
that can be annually allocated to a small refinery pursuant to
this subsection is one thousand and five hundred.
(5) Limitation on total.- In any given year, the total number
of allowances allocated pursuant to this subsection shall not
exceed thirty-five thousand.
(6) Required certification.- The Administrator shall not
allocate any allowances pursuant to this subsection unless the
owner or operator of a small diesel refinery shall have
certified, at a time and in a manner prescribed by the
Administrator, that all motor diesel fuel produced by the
refinery for which allowances are claimed, including motor diesel
fuel for off-highway use, shall have met the requirements of
subsection 211(i) of this Act.
[42 U.S.C. 7651i]
364
SEC. 411. EXCESS EMISSIONS PENALTY.
(a) Excess Emissions Penalty.- The owner or operator of any
unit or process source subject to the requirements of sections
403, 404, 405, 406, 407 or 409, or designated under section 410,
that emits sulfur dioxide or nitrogen oxides for any calendar
year in excess of the unit's emissions limitation requirement or,
in the case of sulfur dioxide, of the allowances the owner or
operator holds for use for the unit for that calendar year shall
be liable for the payment of an excess emissions penalty, except
where such emissions were authorized pursuant to section 110(f).
That penalty shall be calculated on the basis of the number of
tons emitted in excess of the unit's emissions limitation
requirement or, in the case of sulfur dioxide, of the allowances
the operator holds for use for the unit for that year, multiplied
by $2,000. ny such penalty shall be due and payable without
demand to the Administrator as provided in regulations to be
issued by the Administrator by no later than eighteen months
after the date of enactment of the Clean Air Act Amendments of
1990. Any such payment shall be deposited in the United States
Treasury pursuant to the Miscellaneous Receipts Act. Any penalty
due and payable under this section shall not diminish the
liability of the unit's owner or operator for any fine, penalty
or assessment against the unit for the same violation under any
other section of this Act.
(b) Excess Emissions Offset.- The owner or operator of any
affected source that emits sulfur dioxide during any calendar
year in excess of the unit's emissions limitation requirement or
of the allowances held for the unit for the calendar year, shall
be liable to offset the excess emissions by an equal tonnage
amount in the following calendar year, or such longer period as
the Administrator may prescribe. The owner or operator of the
source shall, within sixty days after the end of the year in
which the excess emissions occurred, submit to the Administrator,
and to the State in which the source is located, a proposed plan
to achieve the required offsets. Upon approval of the proposed
plan by the Administrator, as submitted, modified or conditioned,
the plan shall be deemed at a condition of the operating permit
for the unit without further review or revision of the permit.
The Administrator shall also deduct allowances equal to the
excess tonnage from those allocated for the source for the
calendar year, or succeeding years during which offsets are
required, following the year in which the excess emissions
occurred.
(c) Penalty Adjustment.- The Administrator shall, by regula-
tion, adjust the penalty specified in subsection (a) for infla-
tion, based on the Consumer Price Index, on the date of enactment
and annually thereafter.
(d) Prohibition.- It shall be unlawful for the owner or
operator of any source liable for a penalty and offset under this
section to fail (1) to pay the penalty under subsection (a), (2)
to provide, and thereafter comply with, a compliance plan as
required by subsection (b), or (3) to offset excess emissions as
required by subsection (b).
365
(e) Savings Provision.- Nothing in this title shall limit or
otherwise affect the application of section 113, 114, 120, or 304
except as otherwise explicitly provided in this title.
[42 U.S.C. 7651j]
SEC. 412. MONITORING, REPORTING, AND RECORDKEEPING REQUIREMENTS.
(a) Applicability.- The owner and operator of any source
subject to this title shall be required to install and operate
CEMS on each affected unit at the source, and to quality assure
the data for sulfur dioxide, nitrogen oxides, opacity and
volumetric flow at each such unit. The Administrator shall, by
regulations issued not later than eighteen months after enactment
of the Clean Air Act Amendments of 1990, specify the requirements
for CEMS, for any alternative monitoring system that is demon- (continued)