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requirements  of subsection (a) shall  be granted an  extension of the

emission  limitation requirement  compliance date  for that  unit from

January  1, 2000,  to  December  31,  2003.  The  extension  shall  be

specified  in the  permit  issued to  the  source under  section  408,

together with any compliance schedule and other requirements necessary

to meet second phase requirements by the extended date.  Any unit that

is granted an extension under this section shall not be eligible for a

waiver under  section 111(j)  of this  Act, and shall  continue to  be

subject to  requirements under this title as if it were a unit subject

to section 405.

   "(2) If  (A) the owner  or operator of an  existing unit has  been

granted an extension under paragraph (1) in order to repower such unit

with a clean coal unit, and (B) such owner or operator demonstrates to

the satisfaction  of the Administrator that  the repowering technology

to be utilized  by such unit has been properly  constructed and tested

on such unit, but nevertheless has been unable to achieve the emission

reduction   limitations  and   is   economically  or   technologically

infeasible,  such existing unit  may be retrofitted  or repowered with

equipment  or facilities  utilizing another  clean coal  technology or

other available control technology.

   "(c)  Allowances.-(1) For  the period of  the extension under this

section,  the Administrator shall allocate to the owner or operator of

the affected unit, annual  allowances for sulfur dioxide equal  to the

affected unit's  baseline  multiplied  by the  lesser  of  the  unit's

federally approved State Implementation  Plan emissions limitation  or

its actual  emission rate for  1995 in lieu  of any  other allocation.

Such allowances may not be transferred or used by any  other source to

meet  emission requirements  under  this title.  The  source owner  or

operator shall notify the  Administrator sixty days in advance  of the

date  on which  the affected  unit for  which the  extension has  been

granted  is to  be removed  from operation  to install  the repowering


   "(2)  Effective on that  date, the  unit shall  be subject  to the

requirements of section 405. Allowances for the year in which the unit

is removed from operation to  install the repowering technology  shall

be calculated as the product of the unit's baseline multiplied by 1.20

lbs/mmBtu,  divided  by  2,000,  and  prorated  accordingly,  and  are


   "(3)  Allowances for  such  existing  utility units  for  calendar

years after the year the repowering is complete shall be calculated as

the product  of  the  existing  unit's  baseline  multiplied  by  1.20

lbs/mmBtu, divided by 2,000.

   "(4) Notwithstanding  the provisions of  section 403 (a) and  (e),

allowances shall  be  allocated under  this section  for a  designated

replacement unit which replaces  an existing unit (as provided  in the

last sentence of subsection (a)) in lieu of any further allocations of

allowances for the existing unit.

   "(5)  For   the  purpose  of   meeting  the  aggregate   emissions

limitation requirement set forth in section 403(a)(1), the  units with

an extension under this  subsection shall be treated in  each calendar

year during the extension period as holding allowances allocated under

paragraph (3).

   "(d) Control  Requirements.-Any unit qualifying  for an  extension

under  this section that does not increase actual hourly emissions for

any  pollutant regulated  under the  Act shall not  be subject  to any

standard of performance under section 111 of this Act. Notwithstanding

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