by the lesser of its allowable 1985 emission rate or its actual 1985
emission rate, divided by 2,000.
"SEC. 406. ALLOWANCES FOR STATES WITH EMISSIONS RATES AT OR BELOW 0.80
"(a) Election of Governor.-In addition to basic Phase II
allowance allocations, upon the election of the Governor of any State,
with a 1985 state-wide annual sulfur dioxide emissions rate equal to
or less than, 0.80 lbs/mmBtu, averaged over all fossil fuel-fired
utility steam generating units, beginning January 1, 2000, and for
each calendar year thereafter until and including 2009, the
Administrator shall allocate, in lieu of other Phase II bonus
allowance allocations, allowances from the reserve created pursuant to
section 405(a)(2) to all such units in the State in an amount equal to
125,000 multiplied by the unit's pro rata share of electricity
generated in calendar year 1985 at fossil fuel-fired utility steam
units in all States eligible for the election.
"(b) Notification of Administrator.-Pursuant to section
403(a)(1), each Governor of a State eligible to make an election under
paragraph (a) shall notify the Administrator of such election. In the
event that the Governor of any such State fails to notify the
Administrator of the Governor's elections, the Administrator shall
allocate allowances pursuant to section 405.
"(c) Allowances After January 1, 2010.-After January 1, 2010, the
Administrator shall allocate allowances to units subject to the
provisions of this section pursuant to section 405.
"SEC. 407. NITROGEN OXIDES EMISSION REDUCTION PROGRAM.
"(a) Applicability.-On the date that a coal-fired utility unit
becomes an affected unit pursuant to sections 404, 405, 409, or on the
date a unit subject to the provisions of section 404(d) or 409(b),
must meet the SO2 reduction requirements, each such unit shall become
an affected unit for purposes of this section and shall be subject to
the emission limitations for nitrogen oxides set forth herein.
"(b) Emission Limitations.-(1) Not later than eighteen months
after enactment of the Clean Air Act Amendments of 1990, the
Administrator shall by regulation establish annual allowable emission
limitations for nitrogen oxides for the types of utility boilers
below, which limitations shall not exceed the rates listed below:
Provided, That the Administrator may set a rate higher than that
listed for any type of utility boiler if the Administrator finds that
the maximum listed rate for that boiler type cannot be achieved using
low NOx burner technology. The maximum allowable emission rates are as
"(A) for tangentially fired boilers, 0.45 lb/mmBtu;
"(B) for dry bottom wall-fired boilers (other than units
applying cell burner technology), 0.50 lb/mmBtu. After January
1, 1995, it shall be unlawful for any unit that is an affected
unit on that date and is of the type listed in this paragraph to
emit nitrogen oxides in excess of the emission rates set by the
Administrator pursuant to this paragraph.
"(2) Not later than January 1, 1997, the Administrator shall, by
regulation, establish allowable emission limitations on a lb/mmBtu,
annual average basis, for nitrogen oxides for the following types of
"(A) wet bottom wall-fired boilers;