42 U.S.C. § 7651c : US Code - Section 7651C: Phase I sulfur dioxide requirements

Search 42 U.S.C. § 7651c : US Code - Section 7651C: 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 subsection
(d)(2) of this section) 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) of this section, 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limitations established in this section shall be superseded by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 7651d of this title. 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 7651j of this
title.
(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 subchapter that the Administrator finds would have occurred in
the absence of the imposition of such requirements. Pursuant to
subsection (d) of this section, the Administrator shall allocate
allowances from the reserve established hereinunder 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 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) of
this section may include in its section 7651g of this title 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) of this
section 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
7651a(d) (!1) of this title, 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 Administrator,
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 7651g(c) of this
title 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 consistent with the orderly functioning of the
allowance system and which will ensure the emissions reductions
contemplated by this subchapter. If a proposal does not meet the
requirements of subsection (b) of this section, 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 subchapter, 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 7651g of
this title. The Administrator shall allocate allowances for the
original and substitute affected units in accordance with the
approved substitution proposal pursuant to section 7651b of this
title. 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 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 7651j of this title. If a
substitution proposal is disapproved, the Administrator shall
allocate allowances to the original affected unit or units in
accordance with subsection (a) of this section.
(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 7651g of
this title 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 extension, 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 7651g of
this title, that shall govern operations at all units included in
the transfer, and that specifies the emissions reduction
requirements imposed pursuant to this subchapter.
(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
7651g of this title, 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
(!2) subchapter.
(4) In order to determine the number of proposals eligible for
allocations from the reserve under subsection (a)(2) of this
section and the 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) of this section, 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) of this section, 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
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) of
this section, 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 chapter, including under section 7651j of this title, 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) Allocation of allowances
(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 7651d of this title (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 7651d
of this title for reductions in the emissions of sulfur dioxide
made during the period 1995-1999 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
7651d of this title 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 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 November 15, 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 majeur or a commercial
impractibility (!3) or in any other way as a basis for excused
nonperformance by a utility system under a coal sales contract in
effect before November 15, 1990.
TABLE A. - AFFECTED SOURCES AND UNITS IN PHASE I AND THEIR SULFUR
DIOXIDE ALLOWANCES (TONS)
--------------------------------------------------------------------
State Plant Name Gener Phase I
ator Allowa
nces
--------------------------------------------------------------------
Alabama Colbert 1 13,570
2
3
4
5
15,310
15,400
15,410
37,180
E.C. Gaston 1 18,100
2
3
4
5
18,540
18,310
19,280
59,840
Florida Big Bend 1 28,410
2
3
27,100
26,740
Crist 6 19,200
7
31,680
Georgia Bowen 1 56,320
2
3
4
54,770
71,750
71,740
Hammond 1 8,780
2
3
4
9,220
8,910
37,640
J. McDonough 1 19,910
2
20,600
Wansley 1 70,770
2
65,430
Yates 1 7,210
2
3
4
5
6
7
7,040
6,950
8,910
9,410
24,760
21,480
Illinois Baldwin 1 42,010
2
3
44,420
42,550
Coffeen 1 11,790
2
35,670
Grand Tower 4 5,910
Hennepin 2 18,410
Joppa Steam 1 12,590
2
3
4
5
6
10,770
12,270
11,360
11,420
10,620
Kincaid 1 31,530
2
33,810
Meredosia 3 13,890
Vermilion 2 8,880
Indiana Bailly 7 11,180
8
15,630
Breed 1 18,500
Cayuga 1 33,370
2
34,130
Clifty Creek 1 20,150
2
3
4
5
6
19,810
20,410
20,080
19,360
20,380
E. W. Stout 5 3,880
6
7
4,770
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
3
4
41,010
41,080
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
3
4
7,280
6,530
7,650
Tanners Creek 4 24,820
Wabash River 1 4,000
2
3
5
6
2,860
3,750
3,670
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
Kentucky Coleman 1 11,250
2
3
12,840
12,340
Cooper 1 7,450
2
15,320
E.W. Brown 1 7,110
2
3
10,910
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 1 13,340
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
3
4
37,710
40,310
35,940
Montrose 1 7,390
2
3
8,200
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
New Jersey B.L. England 1 9,060
2
11,720
New York Dunkirk 3 12,600
4
14,060
Greenidge 4 7,540
Milliken 1 11,170
2
12,410
Northport 1 19,810
2
3
24,110
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
3
4
4,890
5,500
48,770
Eastlake 1 7,800
2
3
4
5
8,640
10,020
14,510
34,070
Edgewater 4 5,050
Gen. J.M. Gavin 1 79,080
2
80,560
Kyger Creek 1 19,280
2
3
4
5
18,560
17,910
18,710
18,740
Miami Fort 5 760
6
7
11,380
38,510
Muskingum River 1 14,880
2
3
4
5
14,170
13,950
11,780
40,470
Niles 1 6,940
2
9,100
Picway 5 4,930
R.E. Burger 3 6,150
4
5
10,780
12,430
W.H. Sammis 5 24,170
6
7
39,930
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
3
31,100
53,820
Cheswick 1 39,170
Conemaugh 1 59,790
2
66,450
Hatfield's Ferry 1 37,830
2
3
37,320
40,270
Martins Creek 1 12,660
2
12,820
Portland 1 5,940
2
10,230
Shawville 1 10,320
2
3
4
10,320
14,220
14,070
Sunbury 3 8,760
4
11,450
Tennessee Allen 1 15,320
2
3
16,770
15,670
Cumberland 1 86,700
2
94,840
Gallatin 1 17,870
2
3
4
17,310
20,020
21,260
Johnsonville 1 7,790
2
3
4
5
6
7
8
9
10
8,040
8,410
7,990
8,240
7,890
8,980
8,700
7,080
7,550
West Virginia Albright 3 12,000
Fort Martin 1 41,590
2
41,200
Harrison 1 48,620
2
3
46,150
41,500
Kammer 1 18,740
2
3
19,460
17,390
Mitchell 1 43,980
2
45,510
Mount Storm 1 43,720
2
3
35,580
42,430
Wisconsin Edgewater 4 24,750
La Crosse/Genoa 3 22,700
Nelson Dewey 1 6,010
2
6,680
N. Oak Creek 1 5,220
2
3
4
5,140
5,370
6,320
Pulliam 8 7,510
S. Oak Creek 5 9,670
6
7
8
12,040
16,180
15,790
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(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, 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) of this section, 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 resources, 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 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 conservation 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 subchapter (including those sources that elect
to become affected by this subchapter, pursuant to section
7651i of this title).
(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,(!4)
(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 subparagraph
(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 Administrator 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.
(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 conservation
measures or renewable energy that were operational before
January 1, 1992.
(3) Savings provision
Nothing in this subsection precludes 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 November 15, 1990, and in
conjunction with the regulations required to be promulgated under
subsections (b) and (c) of this section, 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 7651b of this
title. 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 7651d of this title on a pro rata
basis. For purposes of this subsection, for any unit subject to the
emissions limitation requirements of section 7651d of this title,
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 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 November 15, 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 7651a(d)
(!5) of this title, 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 7651b(a)(1) of this title, this section, and
section 7651d of this title (as basic Phase II allowance
allocations) 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 7651d of this title.