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   such  reduced  utilization will  be  accomplished  through  energy

   conservation or improved  unit efficiency. The unit to be used for

   such compensating generation,  which is not otherwise  an affected

   unit under sections 404 and 407,  shall be deemed an affected unit

   under  section 404,  subject to all  of the  requirements for such

   units under this title, except that allowances shall be  allocated

   to such  compensating unit in the  amount of  an annual limitation

   equal to  the product  of the  unit's baseline  multiplied by  the

   lesser of the unit's actual  1985 emissions rate or  its allowable

   1985 emissions rate, divided by 2,000.

      "(2)  EPA action  on compliance plans.-The  Administrator shall

   review  each proposed  compliance  plan  to determine  whether  it

   satisfies the  requirements of this  title, and  shall approve  or

   disapprove such plan within 6  months after receipt of  a complete

   submission. If  a plan is disapproved,  it may  be resubmitted for

   approval  with such  changes as  the  Administrator shall  require

   consistent  with the requirements  of this  title and  within such

   period  as   the  Administrator   prescribes  as   part  of   such


      "(3) Regulations; issuance of permits.-Not later than 18 months

   after the date  of the enactment of  the Clean Air Act  Amendments

   of  1990,  the  Administrator  shall  promulgate  regulations,  in

   accordance with title  V, to implement a Federal permit program to

   issue permits  for affected  sources under  this title.  Following

   promulgation, the Administrator shall issue a  permit to implement

   the requirements of section  404 and the allowances provided under

   section 403 to the owner or operator of

   each  affected  source under  section  404.  Such a  permit  shall

   supersede  any permit  application and  compliance plan  submitted

   under paragraph (1).

      "(4) Fees.-During the years 1995 through 1999 inclusive, no fee

   shall be  required to  be paid  under section  502(b)(3) or  under

   section  110(a)(2)(L) with  respect  to  emissions from  any  unit

   which is an affected unit under section 404.

   "(d) Second Phase  Permits.-(1) To provide for permits for (A) new

electric utility steam generating  units required under section 403(e)

to have allowances, (B)  affected units or sources under  section 405,

and  (C) existing units subject to  nitrogen oxide emission reductions

under  section 407,  each State  in which  one or  more such  units or

sources  are located shall submit in accordance with title V, a permit

program for approval  as provided by that title. Upon approval of such

program, for the units or sources subject to such approved program the

Administrator  shall suspend  the issuance of  permits as  provided in

title V.

   "(2) The  owner or  operator or the  designated representative  of

each  affected  source  under  section  405   shall  submit  a  permit

application  and compliance  plan  for that  source to  the permitting

authority, not later than January 1, 1996.

   "(3)  Not  later  than  December  31,  1997,  each  State  with an

approved  permit program shall issue permits to the owner or operator,

or the  designated  representative of  the  owners and  operators,  of

affected sources under  section 405 that  satisfy the requirements  of

title  V and  this title  and that  submitted to  such State  a permit

application and compliance plan pursuant to paragraph (2). In the case

of a State  without an approved  permit program by  July 1, 1996,  the

Administrator shall, not later than January 1, 1998, issue a permit to

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