§ 7651c. Phase I sulfur dioxide requirements

(1)

After

, each source that includes one or more affected units listed in table A is an affected source under this section. After , it shall be unlawful for any affected unit (other than an eligible phase I unit under subsection (d)(2)) to emit sulfur dioxide in excess of the tonnage limitation stated as a total number of allowances in table A for phase I, unless (A) the emissions reduction requirements applicable to such unit have been achieved pursuant to subsection (b) or (d), or (B) the owner or operator of such unit holds allowances to emit not less than the unit’s total annual emissions, except that, after , the emissions limitations established in this section shall be superseded by those established in section 7651d of this title.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

, 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:

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), 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

.

(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).

(1)

the designation of the substitute unit or units to which any part of the reduction obligations of subsection (a) shall be required, in addition to, or in lieu of, any original affected units designated under such subsection;

(2)

the original affected unit’s baseline, the actual and allowable 1985 emissions rate for sulfur dioxide, and the authorized annual allowance allocation stated in table A;

(3)

calculation of the annual average tonnage for calendar years 1985, 1986, and 1987, emitted by the substitute unit or units, based on the baseline for each unit, as defined in section 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.

(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), 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 2

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).

(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—

(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 3

subchapter.

(4)

In order to determine the number of proposals eligible for allocations from the reserve under subsection (a)(2) 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—

(5)

Each eligible Phase I extension unit shall receive allowances determined under subsection (a)(1) or (c) of this section. In addition, for calendar year 1995, the Administrator shall allocate to each eligible Phase I extension unit, from the allowance reserve created pursuant to subsection (a)(2), allowances equal to the difference between the lesser of the average annual emissions in calendar years 1988 and 1989 or its projected emissions tonnage for calendar year 1995 and the product of the unit’s baseline multiplied by an emission rate of 2.50 lbs/mmBtu, divided by 2,000. In calendar year 1996, the Administrator shall allocate for each eligible unit, from the allowance reserve created pursuant to subsection (a)(2) 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), 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

, 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.

(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

, and ; and (B) the weighted capacity factor of all coal-fired units within the utility system averaged over the period from , through , 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 but prior to .

(2)

In the case of an affected unit under this section described in subparagraph (A),4

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),4 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) 4 may be allocated only for emission reductions achieved as a result of physical changes or changes in the method of operation made after , including changes in the type or quality of fossil fuel consumed.

(3)

In no event shall the provisions of this paragraph 5

be interpreted as an event of force majeur 6 or a commercial impractibility 7 or in any other way as a basis for excused nonperformance by a utility system under a coal sales contract in effect before .

Table A.—Affected Sources and Units in Phase I and Their Sulfur Dioxide Allowances (tons)
State	Plant Name	Generator	Phase I Allowances
Alabama	Colbert	1 2 3 4 5	13,570 15,310 15,400 15,410 37,180
	E.C. Gaston	1 2 3 4 5	18,100 18,540 18,310 19,280 59,840
Florida	Big Bend	1 2 3	28,410 27,100 26,740
	Crist	6 7	19,200 31,680
Georgia	Bowen	1 2 3 4	56,320 54,770 71,750 71,740
	Hammond	1 2 3 4	8,780 9,220 8,910 37,640
	J. McDonough	1 2	19,910 20,600
	Wansley	1 2	70,770 65,430
	Yates	1 2 3 4 5 6 7	7,210 7,040 6,950 8,910 9,410 24,760 21,480
Illinois	Baldwin	1 2 3	42,010 44,420 42,550
	Coffeen	1 2	11,790 35,670
	Grand Tower	4	5,910
	Hennepin	2	18,410
	Joppa Steam	1 2 3 4 5 6	12,590 10,770 12,270 11,360 11,420 10,620
	Kincaid	1 2	31,530 33,810
	Meredosia	3	13,890
	Vermilion	2	8,880
Indiana	Bailly	7 8	11,180 15,630
	Breed	1	18,500
	Cayuga	1 2	33,370 34,130
	Clifty Creek	1 2 3 4 5 6	20,150 19,810 20,410 20,080 19,360 20,380
	E. W. Stout	5 6 7	3,880 4,770 23,610
	F. B. Culley	2 3	4,290 16,970
	F. E. Ratts	1 2	8,330 8,480
	Gibson	1 2 3 4	40,400 41,010 41,080 40,320
	H. T. Pritchard	6	5,770
	Michigan City	12	23,310
	Petersburg	1 2	16,430 32,380
	R. Gallagher	1 2 3 4	6,490 7,280 6,530 7,650
	Tanners Creek	4	24,820
	Wabash River	1 2 3 5 6	4,000 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 2 3	11,250 12,840 12,340
	Cooper	1 2	7,450 15,320
	E.W. Brown	1 2 3	7,110 10,910 26,100
	Elmer Smith	1 2	6,520 14,410
	Ghent	1	28,410
	Green River	4	7,820
	H.L. Spurlock	1	22,780
	Henderson II	1 2	13,340 12,310
	Paradise	3	59,170
	Shawnee	10	10,170
Maryland	Chalk Point	1 2	21,910 24,330
	C. P. Crane	1 2	10,330 9,230
	Morgantown	1 2	35,260 38,480
Michigan	J. H. Campbell	1 2	19,280 23,060
Minnesota	High Bridge	6	4,270
Mississippi	Jack Watson	4 5	17,910 36,700
Missouri	Asbury	1	16,190
	James River	5	4,850
	Labadie	1 2 3 4	40,110 37,710 40,310 35,940
	Montrose	1 2 3	7,390 8,200 10,090
	New Madrid	1 2	28,240 32,480
	Sibley	3	15,580
	Sioux	1 2	22,570 23,690
	Thomas Hill	1 2	10,250 19,390
New Hampshire	Merrimack	1 2	10,190 22,000
New Jersey	B.L. England	1 2	9,060 11,720
New York	Dunkirk	3 4	12,600 14,060
	Greenidge	4	7,540
	Milliken	1 2	11,170 12,410
	Northport	1 2 3	19,810 24,110 26,480
	Port Jefferson	3 4	10,470 12,330
Ohio	Ashtabula	5	16,740
	Avon Lake	8 9	11,650 30,480
	Cardinal	1 2	34,270 38,320
	Conesville	1 2 3 4	4,210 4,890 5,500 48,770
	Eastlake	1 2 3 4 5	7,800 8,640 10,020 14,510 34,070
	Edgewater	4	5,050
	Gen. J.M. Gavin	1 2	79,080 80,560
	Kyger Creek	1 2 3 4 5	19,280 18,560 17,910 18,710 18,740
	Miami Fort	5 6 7	760 11,380 38,510
	Muskingum River	1 2 3 4 5	14,880 14,170 13,950 11,780 40,470
	Niles	1 2	6,940 9,100
	Picway	5	4,930
	R.E. Burger	3 4 5	6,150 10,780 12,430
	W.H. Sammis	5 6 7	24,170 39,930 43,220
	W.C. Beckjord	5 6	8,950 23,020
Pennsylvania	Armstrong	1 2	14,410 15,430
	Brunner Island	1 2 3	27,760 31,100 53,820
	Cheswick	1	39,170
	Conemaugh	1 2	59,790 66,450
	Hatfield’s Ferry	1 2 3	37,830 37,320 40,270
	Martins Creek	1 2	12,660 12,820
	Portland	1 2	5,940 10,230
	Shawville	1 2 3 4	10,320 10,320 14,220 14,070
	Sunbury	3 4	8,760 11,450
Tennessee	Allen	1 2 3	15,320 16,770 15,670
	Cumberland	1 2	86,700 94,840
	Gallatin	1 2 3 4	17,870 17,310 20,020 21,260
	Johnsonville	1 2 3 4 5 6 7 8 9 10	7,790 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 2	41,590 41,200
	Harrison	1 2 3	48,620 46,150 41,500
	Kammer	1 2 3	18,740 19,460 17,390
	Mitchell	1 2	43,980 45,510
	Mount Storm	1 2 3	43,720 35,580 42,430
Wisconsin	Edgewater	4	24,750
	La Crosse/Genoa	3	22,700
	Nelson Dewey	1 2	6,010 6,680
	N. Oak Creek	1 2 3 4	5,220 5,140 5,370 6,320
	Pulliam	8	7,510
	S. Oak Creek	5 6 7 8	9,670 12,040 16,180 15,790