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   enactment of the Clean Air Amendments  of 1990 and at intervals of

   every 3 years thereafter, the State shall determine

   whether each nonattainment area (other than an area  classified as

   Marginal  or  Moderate)  has achieved  a  reduction  in  emissions

   during the  preceding intervals equivalent  to the total  emission

   reductions  required to  be achieved by  the end  of such interval

   pursuant  to subsection (b)(1) and  the corresponding requirements

   of subsections  (c)(2) (B) and (C),  (d), and  (e). Such reduction

   shall be referred to in this section as an applicable milestone.

      "(2)  Compliance  demonstration.-For  each  nonattainment  area

   referred to in  paragraph (1), not  later than 90  days after  the

   date  on which  an applicable  milestone occurs (not  including an

   attainment  date on  which a milestone  occurs in  cases where the

   standard has been attained),  each State in  which all or part  of

   such  area  is  located  shall   submit  to  the  Administrator  a

   demonstration that  the milestone  has been  met. A  demonstration

   under this paragraph shall be  submitted in such form  and manner,

   and  shall   contain  such  information   and  analysis,  as   the

   Administrator  shall require,  by  rule.  The Administrator  shall

   determine  whether or  not  a  State's demonstration  is  adequate

   within   90  days   after  the   Administrator's   receipt  of   a

   demonstration  which   contains  the   information  and   analysis

   required by the Administrator.

      "(3) Serious and severe areas; state election.-If a State fails

   to submit a demonstration under  paragraph (2) for any  Serious or

   Severe Area  within the  required period  or if the  Administrator

   determines that  the area  has not  met any  applicable milestone,

   theStateshall elect,within90days aftersuchfailureor determination-

         "(A) to  have  the area  reclassified  to  the  next  higher

      classification,

         "(B) to implement  specific additional measures adequate, as

      determined by the  Administrator, to meet the next milestone as

      provided in the applicable contingency plan, or

         "(C) to adopt an economic incentive  program as described in

      paragraph (4).

   If the  State  makes  an  election  under  subparagraph  (B),  the

   Administrator shall,  within 90  days after  the election,  review

   such  plan and  shall, if the  Administrator finds the contingency

   plan inadequate, require  further measures necessary to  meet such

   milestone. Once  the State makes an  election, it  shall be deemed

   accepted  by   the   Administrator   as   meeting   the   election

   requirement.  If the  State  fails to  make an  election  required

   under  this paragraph within the  required 90-day period or within

   6 months  thereafter, the area shall  be reclassified  to the next

   higher  classification by operation  of law  at the  expiration of

   such 6-month period.  Within 12 months after the date required for

   the State to make an  election, the State shall submit  a revision

   of the applicable  implementation plan for the area that meets the

   requirements of  this  paragraph. The  Administrator shall  review

   such  plan revision and approve or  disapprove the revision within

   9 months after the date of its submission.

      "(4)  Economic  incentive  program.-(A)  An  economic incentive

   program  under  this  paragraph shall  be  consistent  with  rules

   published by the Administrator and sufficient, in combi-

   nation  with other elements of the State plan, to achieve the next

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