42 U.S.C. § 7651i — Election for additional sources

(a) Applicability: The owner^* or operator of a unit^* that isn't already an affected unit^* under sections 7651b, 7651c, or 7651d, or that is a "process source" under subsection (d), and that emits sulfur dioxide, can choose to make that unit or source become an affected unit and get allowances under this subchapter. They submit the election to the Administrator^* (EPA) with a permit application and compliance plan^* under section 7651g. The Administrator must approve an election that meets this section's requirements, and the newly designated unit or source then receives allowances and counts as an affected unit.

(b) Establishment of baseline^*: EPA sets, by regulation, a baseline for the designated unit based on its fuel use and operating data for 1985-1987. If that data isn't available, EPA can use other representative data instead.

(c) Emission limitations: The annual sulfur dioxide limit equals the baseline times the lower of the unit's actual or allowable 1985 emission rate (in pounds per million Btu) — or, if it didn't operate in 1985, the lower of its actual or allowable rate for a later year EPA picks — divided by 2,000.

(d) Process sources: Within 18 months of November 15, 1990, EPA must set up a program letting owners or operators of "process sources" that emit sulfur dioxide elect to become affected units too. EPA must define by regulation which sources qualify, set the emissions limit, spell out what operating, baseline, and other data are required, require continuous emissions monitoring (CEMS) or other monitoring, and issue permit, reporting, and other rules needed to run the program.

(e) Allowances and permits: EPA issues allowances to a unit designated under this section equal to the limit calculated under (c) or (d), following section 7651b's rules. Those allowances can be used and are governed by section 7651b. Sources designated under this section must also follow sections 7651b, 7651g, 7651j, 7651k, 7651l, and 7651m.

(f) Limitation: A unit designated under this section can't transfer or bank allowances it earns by cutting back or shutting down, unless the cutback happened because the unit's heat (thermal energy) was replaced by another subchapter-covered unit, and the designated unit's allowances go to that replacement unit instead. EPA can never give a designated source more allowances than the emissions it would produce running in full compliance with the Act, and none of these allowances excuse violating any other requirement.

(g) Implementation: EPA must issue regulations to carry out this section within 18 months of November 15, 1990.

(h) Small diesel refineries: EPA must give allowances to owners or operators of small diesel refineries that make diesel fuel meeting section 7545(i)'s requirements after October 1, 1993. This subsection covers six points: (1) Allowance^* period: Allowances are only for October 1, 1993 through December 31, 1999. (2) Allowance determination: The number of allowances equals the yearly pounds of sulfur dioxide cut by desulfurizing the fuel at a small refinery, divided by 2,000. For this math, the sulfur removed counts as the difference between 0.274% and 0.050% by weight. (3) Refinery eligibility: A "small refinery" is one that, as of November 15, 1990, processed less than 18,250,000 barrels of crude oil a year (as reported to the Department of Energy), and was owned or controlled by a refiner whose combined throughput was less than 50,187,500 barrels a year. (4) Limitation per refinery: No small refinery can get more than 1,500 allowances a year under this subsection. (5) Limitation on total: The combined allowances given out under this subsection in any year can't exceed 35,000. (6) Required certification: EPA can't give any of these allowances unless the owner or operator of a small diesel refinery certifies that all the diesel fuel it made and claimed allowances for, including off-highway diesel, met section 7545(i)'s requirements.