42 U.S.C. § 7651d : US Code - Section 7651D: Phase II sulfur dioxide requirements

Search 42 U.S.C. § 7651d : US Code - Section 7651D: 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 subchapter. 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 chapter for fulfilling the obligations
specified in section 7651j 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 7651e of
this title. Not later than June 1, 1998, the Administrator shall
calculate, for each unit granted an extension pursuant to section
7651h of this title 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 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 7651c of this title (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 7651b(a) of this
title.
(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 7651b(a)(1) of this title 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) of this section
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 7407 of this title for any pollutant subject to the
requirements of section 7409 of this title 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.
(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 emissions.
(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 7411 of this title 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 than 78,000
electrical customers as of November 15, 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 (!1) 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 7651b(a)(1) of this title 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
limitation 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) of this section 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 November 15,
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
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 7651b(a)(1) of this title 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 (1) allowances from
the reserve created pursuant to subsection (a)(2) of this section
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 7651b(a)(1) of this title as
basic Phase II allowance allocations.
(B) In addition to allowances allocated pursuant to paragraph (2)
and section 7651b(a)(1) of this title 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) of this section
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 7651b(a)(1) of this title as
basic Phase II allowance allocations.
(C) An operating company with units subject to the emissions
limitation requirements of this subsection may elect the allocation
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 subject
to the emissions limitation requirements of this subsection which
commenced commercial operation on or after January 1, 1981 and
before December 31, 1985, which was subject to, and in compliance
with, section 7411 of this title 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 7651b(a)(1) of
this title, beginning January 1, 2000, the Administrator shall,(!2)
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 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 7651b of this title 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
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Unit 2Allowances
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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
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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 (!3) 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 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 commercial
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) (!4)
of the Powerplant and Industrial 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) (!5) Unless the Administrator has approved a designation
of such facility under section 7651i of this title, the provisions
of this subchapter shall not apply to a "qualifying small power
production facility" or "qualifying cogeneration facility" (within
the meaning of section 796(17)(C) or 796(18)(B) of title 16) or to
a "new independent power production facility" as defined in section
7651o of this title except that clause (iii) (!6) of such
definition in section 7651o of this title shall not apply for
purposes of this paragraph if, as of November 15, 1990,
(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 emissions.
(2) In addition to allowances allocated pursuant to paragraph (1)
and section 7651b(a)(1) of this title 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) of this section 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 7651b(a)(1) of this title, 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.
(i) Units in high growth States
(1) In addition to allowances allocated pursuant to this section
and section 7651b(a)(1) of this title 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:
1981-1988 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 7651b(a)(1) of this
title as basic Phase II allowance allocations, the Administrator
shall allocate annually for each unit subject to the emissions
limitation requirements of subsection (b)(1) of this section, (A)
the lesser of whose actual or allowable 1980 emissions rate has
declined by 50 percent or more as of November 15, 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 November 15, 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) of this section
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) of this section:
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 section and section 7651b(a)(1) of this title 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.