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affected unit under this title. 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  Act for fulfilling the  obligations specified in  section 411 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 406. Not later  than June

1, 1998, the Administrator  shall calculate, for each unit  granted an

extension  pursuant to  section  409 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 404 (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 403(a).

   "(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 403(a)(1)  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 para-

graph  (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) 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.

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