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provide  for controls which are  not less stringent  than the controls

applicable to areas designated nonattainment before such relaxation.".

   (c) New Source Permit  Requirements.-Section 173 of the Clean  Air

Act (42 U.S.C. 7503) is amended as follows:

      (1) Strike the center heading and "Sec. 173." and insert:

"SEC. 173. PERMIT REQUIREMENTS.".

      (2) Insert "(a) In General.-" before the first sentence.

      (3)  Insert  the following  after  "(1)":  "in accordance  with

   regulations issued by  the Administrator for the  determination of

   baseline emissions  in a  manner consistent  with the  assumptions

   underlying  the  applicable  implementation  plan  approved  under

   section 110 and this part,".

      (4)  Make  the  following  amendments in  subparagraph  (A)  of

   paragraph (1):

           (A)  Insert  "sufficient  offsetting emissions  reductions

         have been  obtained, such that"  immediately after the comma

         following "commence operation".

           (B) Strike  "allowed under  the applicable  implementation

         plan"  and insert  "(as  determined in  accordance  with the

         regulations under this paragraph)".

      (5)  Make  the  following  amendments in  subparagraph  (B)  of

   paragraph (1):

           (A)  Insert  "in the  case  of  a  new  or modified  major

         stationary  source which  is located  in a zone  (within the

         nonattainment  area) identified  by  the  Administrator,  in

         consultation   with  the  Secretary  of  Housing  and  Urban

         Development, as a  zone to which economic development should

         be targeted," at the beginning thereof.

           (B) Strike "172(b)" and insert "172(c)".

      (6) Make the following amendments in paragraph (4):

           (A) Insert  "the Administrator  has  not determined  that"

         after "(4)".

           (B)  Strike "being  carried  out"  and insert  "not  being

         adequately implemented".

           (C) Replace the period at the end thereof with "; and".

      (7) Add the following new paragraph after paragraph (4):

         "(5)  an analysis  of  alternative sites,  sizes, production

   processes, and  environmental control techniques for such proposed

   source   demonstrates  that   benefits  of   the  proposed  source

   significantly outweigh the  environmental and social costs imposed

   as a result of its location, construction, or modification.".

      (8) Strike  "(1)(A) shall be legally binding" in the concluding

   sentence of  subsection (a),  as redesignated  by this  subsection

   and insert "(1) shall be federally enforceable".

      (9) Add a new subsection (b) to read as follows:

   "(b)  Prohibition on  Use  of  Old Growth  Allowances.-Any  growth

allowance included in  an applicable implementation  plan to meet  the

requirements of section 172(b)(5) (as in effect immediately before the

date of the enactment of  the Clean Air Act Amendments of  1990) shall

not be  valid for use in  any area that received or  receives a notice

under section  110(a)(2)(H)(ii) (as  in effect immediately  before the

date of  the enactment of  the Clean  Air Act Amendments  of 1990)  or

under  section  110(k)(1)  that  its  applicable  implementation  plan

containing such allowance is substantially inadequate.".

      (10) Add the following new subsections at the end thereof:

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