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"SEC. 401. FINDINGS AND PURPOSES.

   "(a) Findings.-The Congress finds that-

      "(1) the  presence of acidic compounds and  their precursors in

   the atmosphere and in deposition from the atmosphere repre-

   sents  a  threat  to  natural  resources,  ecosystems,  materials,

   visibility, and public health;

      "(2)  the principal sources  of the acidic  compounds and their

   precursors in the atmosphere are  emissions of sulfur and nitrogen

   oxides from the combustion of fossil fuels;

      "(3)  the  problem  of  acid  deposition  is  of  national  and

   international significance;

      "(4) strategies and technologies  for the control of precursors

   to acid deposition  exist now that are economically  feasible, and

   improved methods  are expected  to  become increasingly  available

   over the next decade;

      "(5)  current  and  future  generations of  Americans  will  be

   adversely affected by delaying measures to remedy the problem;

      "(6) reduction  of total atmospheric loading  of sulfur dioxide

   and  nitrogen oxides will enhance  protection of the public health

   and welfare and the environment; and

      "(7)  control  measures  to  reduce  precursor  emissions  from

   steam-electric   generating  units  should  be  initiated  without

   delay.

   "(b) Purposes.-The purpose  of this title is to reduce the adverse

effects of acid  deposition through reductions in annual  emissions of

sulfur dioxide of ten million tons from 1980  emission levels, and, in

combination  with other  provisions of  this Act,  of nitrogen  oxides

emissions of approximately two million tons from 1980 emission levels,

in  the forty-eight contiguous States and the District of Columbia. It

is the intent of this title to effectuate such reductions by requiring

compliance by affected sources with prescribed emission limitations by

specified deadlines, which limitations  may be met through alternative

methods of compliance provided by an emission allocation  and transfer

system.  It is  also the  purpose of  this  title to  encourage energy

conservation, use of renewable and clean alternative technologies, and

pollution  prevention as  a long-range  strategy, consistent  with the

provisions of this title, for reducing air pollution and other adverse

impacts of energy production and use.

"SEC. 402. DEFINITIONS.

   "As used in this title:

      "(1) The term  `affected source' means  a source that  includes

   one or more affected units.

      "(2) The term `affected unit' means  a unit that is subject  to

   emission reduction requirements or limitations under this title.

      "(3) The term `allowance'  means an authorization, allocated to

   an affected unit by the  Administrator under this title,  to emit,

   during  or after  a  specified calendar  year,  one ton  of sulfur

   dioxide.

      "(4) The  term `baseline' means  the annual quantity  of fossil

   fuel  consumed  by  an  affected unit,  measured  in  millions  of

   British Thermal Units (`mmBtu's'), calculated as follows:

         "(A) For each utility unit that was in commercial  operation

      prior  to January  1, 1985,  the baseline  shall be  the annual

      average quantity  of mmBtu's  consumed in fuel  during calendar

      years  1985, 1986, and 1987,  as recorded by  the Department of

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