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   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 403. 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 405 on a pro rata  basis.

For purposes of this subsection, for any unit subject to the emissions

limitation requirements  of  section 405,  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 the  date of  the enactment of  the

   Clean Air Act Amendments of 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  402(d), 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  403(a)(1),  this

   section,   and  section   405  (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 405.  

"SEC. 405. 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

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