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the owner or operator of  such unit holds allowances to emit  not less

than the unit's total annual emissions.

   "(3) After January 1, 2000, it shall be unlawful for  any existing

utility unit with a nameplate capacity below 75 MWe and an actual 1985

emissions  rate equal to, or greater than, 1.20 lbs/mmBtu which became

operational  on or  before December  31,  1965, which  is  owned by  a

utility  operating  company with,  as of  December  31, 1989,  a total

fossil fuel  steam-electric generating capacity greater  than 250 MWe,

and  less than  450  MWe which  serves  fewer than  78,000  electrical

customers as  of the date of enactment of the Clean Air Act Amendments

of  1990  to  exceed  an  annual   sulfur  dioxide  emissions  tonnage

limitation  equal to  the product  of its  baseline multiplied  by the

lesser  of  its actual  or allowable  1985  emission rate,  divided by

2,000, unless the owner or operator holds allowances  to emit not less

than the units total annual emissions. After January 1, 2010, it shall

be  unlawful  for  each  unit  subject  to  the  emissions  limitation

requirements of  this paragraph to exceed an  annual emissions tonnage

limitation  equal  to the  product of  its  baseline multiplied  by an

emissions rate of 1.20  lbs/mmBtu, divided by 2,000, unless  the owner

or operator  holds allowances to  emit not less than  the unit's total

annual emissions.

   "(4) 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,  inclusive,  the  Administrator  shall  allocate

annually   for  each   unit  subject   to  the   emissions  limitation

requirements of paragraph (1) with an actual 1985 emissions rate equal

to, or 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.

   "(5) After January 1, 2000, it  shall be unlawful for any existing

utility unit with a nameplate capacity below 75 MWe and an actual 1985

emissions rate equal to, or greater than, 1.20 lbs/mmBtu which is part

of an electric utility system  which, as of the date of  the enactment

of  the Clean Air Act Amendments of  1990, (A) has at least 20 percent

of  its fossil-fuel  capacity controlled  by flue  gas desulfurization

devices,  (B) has  more than  10 percent  of its  fossil-fuel capacity

consisting of coal-fired units of less than 75 MWe, and  (C) has large

units  (greater than  400  MWe) all  of which  have difficult  or very

difficult  FGD Retrofit Cost  Factors (according to  the Emissions and

the  FGD Retrofit  Feasibility  at  the  200 Top  Emitting  Generating

Stations,  prepared  for the  United  States  Environmental Protection

Agency on January 10, 1986) to exceed an annual sulfur diox-

ide  emissions tonnage limitation equal to the product of its baseline

multiplied  by an emissions rate  of 2.5 lbs/mmBtu,  divided by 2,000,

unless the owner  or operator holds allowances  to emit not  less than

the unit's total annual emissions. After  January 1, 2010, it shall be

unlawful   for  each   unit  subject   to  the   emissions  limitation

requirements of this paragraph to  exceed an annual emissions  tonnage

limitation  equal  to the  product of  its  baseline multiplied  by an

emissions rate of 1.20  lbs/mmBtu, divided by 2,000, unless  the owner

or operator  holds for use allowances to emit not less than the unit's

total annual emissions.

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