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   percent between 1980 and  1988 according  to State Population  and

   Household  Estimates, With  Age, Sex,  and  Components of  Change:

   1981-1988 allocated by  the United States Department  of Commerce,


      "(B) had  an installed  electrical generating capacity  of more

   than 30,000,000 kw in 1988,  

in an  amount  equal to  the  difference  between (A)  the  number  of

allowances  that would  be  allocated for  the  unit pursuant  to  the

emissions limitation  requirements of  this section applicable  to the

unit adjusted to reflect the unit's annual average fuel consumption on

a Btu basis  of any three consecutive calendar years  between 1980 and

1989  (inclusive)  as elected  by the  owner or  operator and  (B) the

number  of allowances allocated for the unit pursuant to the emissions

limitation requirements of this section: Provided, That the  number of

allowances allocated pursuant  to this subsection shall not  exceed an

annual total of 40,000.  If necessary to meeting the  40,000 allowance

restriction  imposed  under this  subsection  the  Administrator shall

reduce, pro rata, the additional  annual allowances allocated to  each

unit under this subsection.

   "(2)  Beginning  January  1,  2000,  in   addition  to  allowances

allocated  pursuant to  this section  and section  403(a)(1) as  basic

Phase  II  allowance  allocations, the  Administrator  shall  allocate

annually   for  each   unit  subject   to  the   emissions  limitation

requirements of subsection (b)(1),  (A) the lesser of whose  actual or

allowable 1980 emissions rate has declined by 50 percent or more as of

the date  of enactment of  the Clean Air  Act Amendments of  1990, (B)

whose  actual emissions rate is less than  1.2 lbs/mmBtu as of January

1,  2000, (C)  which commenced  operation after  January 1,  1970, (D)

which  is owned  by a  utility company  whose combined  commercial and

industrial kilowatt-hour sales have increased  by more than 20 percent

between calendar year 1980 and the date of enactment of  the Clean Air

Act Amendments of 1990, and (E) whose company-wide  fossil-fuel sulfur

dioxide emissions rate has declined 40 per centum or more from 1980 to

1988, allowances in an amount equal to  the difference between (i) the

number of allowances that would be allocated for the  unit pursuant to

the emissions limitation requirements of subsection (b)(1) adjusted to

reflect the  unit's annual average fuel consumption on a Btu basis for

any  three consecutive  years  between 1980  and  1989 (inclusive)  as

elected by the owner or operator and (ii)

the  number of  allowances  allocated for  the  unit pursuant  to  the

emissions limitation requirements of subsection (b)(1): Provided, That

the  number of allowances  allocated pursuant to  this paragraph shall

not  exceed an  annual total  of 5,000.  If necessary  to meeting  the

5,000-allowance  restriction  imposed  in   the  last  clause  of  the

preceding  sentence  the Administrator  shall  reduce,  pro rata,  the

additional  allowances  allocated  to   each  unit  pursuant  to  this


   "(j) Certain Municipally Owned Power  Plants.-Beginning January 1,

2000, in addition to allowances allocated pursuant to this section and

section  403(a)(1)  as  basic  Phase  II  allowance  allocations,  the

Administrator shall  allocate annually  for each existing  municipally

owned oil and gas-fired utility unit with nameplate capacity equal to,

or less  than, 40 MWe,  the lesser of  whose actual or  allowable 1985

sulfur  dioxide  emission rate is less than 1.20 lbs/mmBtu, allowances

in  an  amount  equal  to  the  product  of  the  unit's  annual  fuel

consumption on a Btu basis at a 60 percent  capacity factor multiplied

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