42 U.S.C. § 7651d — Phase II sulfur dioxide requirements
submitted 71 years ago by Pub. L. 101-549 to r/title-42-THE-PUBLIC-HEALTH-AND-WELFARE · 4,635 words · no verdicts yet
This section sets stricter sulfur dioxide limits for existing power plant units starting in 2000, based on each unit's size, fuel type, and past pollution rate. Owners must hold enough allowances to cover their actual emissions or face liability. Many categories of units also get bonus allowances for special circumstances, like fast growth, early conversions, or small municipal ownership.
(a) Applicability. Starting January 1, 2000, existing power-plant units covered by the categories described below become subject to this section's limits, and any unit* with an annual sulfur dioxide tonnage limit here is an "affected unit*" (its plant is an "affected source*"). If a unit was not running in 1985, the Administrator* picks a later year's rate to use instead of the 1985 rate. Violators are fully liable, including for the obligations described in section 7651j.
Beyond each unit's basic allowance* allocation, from 2000 through 2009 the Administrator gives out up to 530,000 "Phase II bonus allowances" total, spread among several bonus programs described in subsections (b)(2), (c)(4), (d)(3)(A) and (B), and (h)(2) of this section, plus section 7651e. By June 1, 1998, for every unit that got a repowering* extension under section 7651h, the Administrator had to calculate the gap between the allowances it would get in 2000 and what its baseline* times 1.20 lbs/mmBtu divided by 2,000 would produce, and total these gaps up across all such units. Then, each year from 2000 through 2009, the Administrator trims 10% of that total off of every unit's basic Phase II allocation, with each unit's cut based on its pro rata share.
On top of the basic and bonus allowances, starting in 2000, Table A units (from section 7651c) located in Illinois, Indiana, Ohio, Georgia, Alabama, Missouri, Pennsylvania, West Virginia, Kentucky, or Tennessee — except the Kyger Creek, Clifty Creek, and Joppa Steam plants — get extra allowances equal to 50,000 times each unit's pro rata share of the total Table A basic allowances (again excluding those three plants). These particular bonus allowances do not count against the 8,900,000-ton cap set in section 7651b(a).
(b) Units 75 MWe or larger with a 1985 rate of 1.20 lbs/mmBtu or higher. Except as noted below, starting in 2000, it is unlawful for such a unit to emit more sulfur dioxide than its baseline times 1.20 lbs/mmBtu, divided by 2,000 — unless the owner* holds enough allowances to cover actual emissions. On top of its basic allocation, from 2000 through 2009, a unit in this category whose actual 1985 rate was between 1.20 and 2.50 lbs/mmBtu, and whose baseline capacity factor* was under 60%, gets bonus allowances from the reserve* created in subsection (a). The bonus equals 1.20 lbs/mmBtu times half the difference (measured in Btu) between the unit's baseline and what it would use running at a 60% capacity factor. An exception applies to a unit with a 1985 rate at or above 1.20 lbs/mmBtu, whose fuel use in 1985-87 was over 90% lignite coal, and that sits in a state* with no area rated "nonattainment" for air pollution as of July 1, 1989: instead its limit equals its baseline times the lesser of its actual or allowed 1985 rate, divided by 2,000 — again unless it holds enough allowances. In big states (over 30,000,000 kw of generating capacity in 1988) where a unit was ordered, or proposed to be ordered, to stop burning oil and switched to coal between 1980 and 1985, the Administrator gives extra allowances equal to the unit's fuel use at a 65% capacity factor times the lesser of its actual or allowed rate in its first full year after converting, divided by 2,000, minus what it already got as its basic allocation — capped at 5,000 allowances total per year across such units, reduced pro rata if needed to stay under that cap.
(c) Coal- or oil-fired units under 75 MWe with a 1985 rate of 1.20 lbs/mmBtu or higher. For a unit owned by a company with at least 250 MWe of fossil-fuel steam capacity as of the end of 1989, the limit (unless the exception below applies) is its baseline times 1.20 lbs/mmBtu, divided by 2,000, absent enough allowances. For a unit owned by a smaller company (under 250 MWe as of the end of 1989) — and not already covered by section 7411's standards or an equally strict federal limit — the limit is its baseline times the lesser of its actual or allowed 1985 rate, divided by 2,000. A unit under 75 MWe that started running on or before the end of 1965, owned by a company with capacity greater than 250 MWe and less than 450 MWe as of the end of 1989 serving fewer than 78,000 customers as of November 15, 1990, gets a looser limit — baseline times the lesser of its actual or allowed rate, divided by 2,000 — until January 1, 2010, when it switches to the 1.20 lbs/mmBtu standard like everyone else. Like subsection (b), a unit here with a 1985 rate between 1.20 and 2.50 lbs/mmBtu and a baseline capacity factor under 60% gets the same 60%-capacity-factor bonus from the reserve, from 2000 through 2009. A unit under 75 MWe, part of a utility system that (as of November 15, 1990) already had heavy pollution-control coverage, a large share of small coal units, and big units that would be especially expensive to retrofit (according to a specific 1986 EPA cost study), gets a looser 2.5 lbs/mmBtu limit until 2010, then tightens to 1.20 lbs/mmBtu after that — unless it holds enough allowances either way.
(d) Coal-fired units below 1.20 lbs/mmBtu. A unit whose 1985 rate (actual or allowed, whichever is lower) is under 0.60 lbs/mmBtu has a limit equal to its baseline times the lesser of 0.60 lbs/mmBtu or its allowed 1985 rate, times 120%, divided by 2,000. A unit whose 1985 rate is between 0.60 and 1.20 lbs/mmBtu has a limit equal to its baseline times the lesser of its actual or allowed 1985 rate, times 120%, divided by 2,000. A company can choose, for all its qualifying units at once, to get extra bonus allowances from the reserve, from 2000 through 2009: for the first group of units, the bonus equals the unit's baseline (adjusted to a 60% capacity factor) times the lesser of 0.60 lbs/mmBtu or its allowed rate, divided by 2,000, minus its basic allocation; for the second group, the same calculation uses the lesser of its actual or allowed rate instead. This election applies to every one of the company's qualifying units, not just some. A unit that started running between January 1, 1981, and December 31, 1985, and complied with section 7411, can instead choose an allocation equal to its fuel use at a 65% capacity factor times its allowed 1985 rate, divided by 2,000, in place of the other formulas in this subsection. An oil- or gas-fired unit that got a clean coal technology demonstration grant from the Department of Energy by January 1, 1991, gets allowances equal to its baseline times 1.20 lbs/mmBtu, divided by 2,000.
(e) Oil- and gas-fired units between 0.60 and 1.20 lbs/mmBtu. Such a unit's limit is its baseline times the lesser of its allowed or actual 1985 rate, times 120%, divided by 2,000 — unless it holds enough allowances.
(f) Oil- and gas-fired units below 0.60 lbs/mmBtu. A unit whose 1985 rate (lesser of actual or allowed) is under 0.60 lbs/mmBtu, and whose 1980-89 fuel use was 90% or less natural gas, has a limit equal to its baseline times the lesser of 0.60 lbs/mmBtu or its allowed rate, times 120%, divided by 2,000. On top of that, starting in 2000, a unit run by a utility that supplies electricity, steam, and natural gas within one city and one adjoining county gets its pro rata share of a 7,000-allowance pool; a similar unit owned by a state authority serving that same area gets its pro rata share of a 2,000-allowance pool.
(g) Units that started running between 1986 and the end of 1995. A unit that began commercial operation between January 1, 1986, and September 30, 1990, has a limit equal to its fuel use at a 65% capacity factor times its allowed 1985 rate, divided by 2,000. Eleven specific units, listed by name in Table B (including Brandon Shores, Miller 4, TNP One 2, Zimmer 1, Spruce 1, both Clover units, both Twin Oak units, Cross 1, and Malakoff 1), instead get the exact fixed allowance amount Table B lists for them, and cannot also get allowances under any other paragraph of this subsection — though an owner can choose a different paragraph's formula instead of the Table B number if it prefers. A unit that began commercial operation between October 1, 1990, and December 31, 1992, gets allowances equal to its fuel use at a 65% capacity factor times the lesser of 0.30 lbs/mmBtu or its allowed rate, divided by 2,000. A unit that started construction* before the end of 1990 and began commercial operation between January 1, 1993, and December 31, 1995, gets that same formula. A unit that switched from mostly gas to coal between 1985 and 1987, and had a federal order (proposed or final) requiring it to stop burning oil under the old Powerplant and Industrial Fuel Use Act, has a limit equal to its fuel use at a 65% capacity factor times the lesser of 1.20 lbs/mmBtu or its allowed 1987 rate, divided by 2,000 — unless it holds allowances covering its actual emissions. This whole subchapter does not apply to a "qualifying small power production facility," a "qualifying cogeneration facility" (as those terms are defined in Title 16), or a "new independent power production facility" (as defined in section 7651o) — unless the Administrator approves treating it as covered under section 7651i. But a special carve-out in that "new independent power production facility" definition does not apply here if, as of November 15, 1990, the facility already had a signed power sales agreement, was the subject of a state order requiring a utility to buy its power or negotiate over it, had received a utility's letter of intent to buy its power followed by an actual signed agreement within a reasonable time, or had already won a utility's competitive bidding process.
(h) Oil- and gas-fired units where oil is under 10% of fuel use. A unit whose 1980-89 fuel use was over 90% natural gas has a limit equal to its baseline times its actual 1985 rate, divided by 2,000 — unless it holds enough allowances. From 2000 through 2009, such a unit also gets bonus allowances from the reserve equal to its baseline times 0.050 lbs/mmBtu, divided by 2,000. Starting in 2010, it gets that same 0.050 lbs/mmBtu bonus again, this time as a regular, non-reserve allocation.
(i) Units in fast-growing states. Starting in 2000, a unit in a state that grew more than 25% in population between 1980 and 1988 (according to Commerce Department data) and had over 30,000,000 kw of generating capacity in 1988, gets extra allowances. The bonus equals what the unit's regular formula would produce if its fuel use were based on any three consecutive years the owner picks from 1980-1989, minus what the formula actually produces using the real numbers — capped at 40,000 allowances total per year across all such units, reduced pro rata if needed. Starting in 2000, a unit already covered by subsection (b) also gets a similar bonus — recalculating its allowance using an owner-picked three-year fuel-use window instead of the real numbers — but only if the unit meets five extra conditions: its 1980 rate has fallen 50% or more by November 15, 1990; its actual rate is under 1.2 lbs/mmBtu as of 2000; it started running after 1970; its owner's combined commercial and industrial electricity sales grew more than 20% between 1980 and November 15, 1990; and its owner's company-wide sulfur dioxide rate fell 40% or more between 1980 and 1988. This second bonus is capped at 5,000 allowances total per year, reduced pro rata if needed.
(j) Certain municipally owned power plants. Starting in 2000, a municipally owned oil- and gas-fired unit of 40 MWe or less, whose 1985 rate (lesser of actual or allowed) was under 1.20 lbs/mmBtu, gets extra allowances equal to its fuel use at a 60% capacity factor times the lesser of its allowed or actual 1985 rate, divided by 2,000.
After January 1, 2000, each existing utility unit* as provided below is subject to the limitations or requirements of this section. Each utility unit* subject to an annual sulfur dioxide tonnage emission limitation* under this section is an affected unit* under this subchapter. Each source that includes one or more affected units is an affected source*. In the case of an existing unit* that was not in operation during calendar year 1985, the emission rate for a calendar year after 1985, as determined by the Administrator*, shall be used in lieu of the 1985 rate. The owner* or operator of any unit operated in violation of this section shall be fully liable under this chapter for fulfilling the obligations specified in section 7651j of this title.
In addition to basic Phase II allowance* allocations, in each year beginning in calendar year 2000 and ending in calendar year 2009, inclusive, the Administrator shall allocate up to 530,000 Phase II bonus allowances pursuant to subsections (b)(2), (c)(4), (d)(3)(A) and (B), and (h)(2) of this section and section 7651e of this title. Not later than June 1, 1998, the Administrator shall calculate, for each unit granted an extension pursuant to section 7651h of this title the difference between (A) the number of allowances allocated for the unit in calendar year 2000, and (B) the product of the unit’s baseline* multiplied by 1.20 lbs/mmBtu, divided by 2000, and sum the computations. In each year, beginning in calendar year 2000 and ending in calendar year 2009, inclusive, the Administrator shall deduct from each unit’s basic Phase II allowance allocation its pro rata share of 10 percent of the sum calculated pursuant to the preceding sentence.
In addition to basic Phase II allowance allocations and Phase II bonus allowance allocations, beginning January 1, 2000, the Administrator shall allocate for each unit listed on Table A in section 7651c of this title (other than units at Kyger Creek, Clifty Creek, and Joppa Steam) and located in the States of Illinois, Indiana, Ohio, Georgia, Alabama, Missouri, Pennsylvania, West Virginia, Kentucky, or Tennessee allowances in an amount equal to 50,000 multiplied by the unit’s pro rata share of the total number of basic allowances allocated for all units listed on Table A (other than units at Kyger Creek, Clifty Creek, and Joppa Steam). Allowances allocated pursuant to this paragraph shall not be subject to the 8,900,000 ton limitation in section 7651b(a) of this title.
Except as otherwise provided in paragraph (3), after January 1, 2000, it shall be unlawful for any existing utility unit that serves a generator* with nameplate capacity equal to, or greater, than 75 MWe and an actual 1985 emission rate* equal to or greater than 1.20 lbs/mmBtu to exceed an annual sulfur dioxide tonnage emission limitation equal to the product of the unit’s baseline multiplied by an emission rate equal to 1.20 lbs/mmBtu, divided by 2,000, unless the owner or operator of such unit holds allowances to emit not less than the unit’s total annual emissions.
In addition to allowances allocated pursuant to paragraph (1) and section 7651b(a)(1) of this title as basic Phase II allowance allocations, beginning January 1, 2000, and for each calendar year thereafter until and including 2009, the Administrator shall allocate annually for each unit subject to the emissions limitation requirements of paragraph (1) with an actual 1985 emissions rate greater than 1.20 lbs/mmBtu and less than 2.50 lbs/mmBtu and a baseline capacity factor* of less than 60 percent, allowances from the reserve* created pursuant to subsection (a)(2) in an amount equal to 1.20 lbs/mmBtu multiplied by 50 percent of the difference, on a Btu basis, between the unit’s baseline and the unit’s fuel consumption at a 60 percent capacity factor.
After January 1, 2000, it shall be unlawful for any existing utility unit with an actual 1985 emissions rate equal to or greater than 1.20 lbs/mmBtu whose annual average fuel consumption during 1985, 1986, and 1987 on a Btu basis exceeded 90 percent in the form of lignite coal which is located in a State* in which, as of July 1, 1989, no county or portion of a county was designated nonattainment under section 7407 of this title for any pollutant subject to the requirements of section 7409 of this title to exceed an annual sulfur dioxide tonnage 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, unless the owner or operator of such unit holds allowances to emit not less than the unit’s total annual emissions.
After January 1, 2000, the Administrator shall allocate annually for each unit, subject to the emissions limitation requirements of paragraph (1), which is located in a State with an installed electrical generating capacity of more than 30,000,000 kw in 1988 and for which was issued a prohibition order or a proposed prohibition order (from burning oil), which unit subsequently converted to coal between January 1, 1980 and December 31, 1985, allowances equal to the difference between (A) the product of the unit’s annual fuel consumption, on a Btu basis, at a 65 percent capacity factor multiplied by the lesser of its actual or allowable emissions rate during the first full calendar year after conversion, divided by 2,000, and (B) the number of allowances allocated for the unit pursuant to paragraph (1): Provided, That the number of allowances allocated pursuant to this paragraph shall not exceed an annual total of five thousand. If necessary to meeting the restriction imposed in the preceding sentence the Administrator shall reduce, pro rata, the annual allowances allocated for each unit under this paragraph.
Except as otherwise provided in paragraph (3), after January 1, 2000, it shall be unlawful for a coal or oil-fired existing utility unit that serves a generator with nameplate capacity of less than 75 MWe and an actual 1985 emission rate equal to, or greater than, 1.20 lbs/mmBtu and which is a unit owned by a utility operating company whose aggregate nameplate fossil fuel steam-electric capacity is, as of December 31, 1989, equal to, or greater than, 250 MWe to exceed an annual sulfur dioxide emissions limitation equal to the product of the unit’s baseline multiplied by an emission rate equal to 1.20 lbs/mmBtu, divided by 2,000, unless the owner or operator of such unit holds allowances to emit not less than the unit’s total annual emissions.
After January 1, 2000, it shall be unlawful for a coal or oil-fired existing utility unit that serves a generator with nameplate capacity of less than 75 MWe and an actual 1985 emission rate equal to, or greater than, 1.20 lbs/mmBtu (excluding units subject to section 7411 of this title or to a federally enforceable emissions limitation for sulfur dioxide equivalent to an annual rate of less than 1.20 lbs/mmBtu) and which is a unit owned by a utility operating company whose aggregate nameplate fossil fuel steam-electric capacity is, as of December 31, 1989, less than 250 MWe, to exceed an annual sulfur dioxide tonnage emissions limitation equal to the product of the unit’s baseline multiplied by the lesser of its actual 1985 emissions rate or its allowable 1985 emissions rate, divided by 2,000, unless the owner or operator of such unit holds allowances to emit not less than the unit’s total annual emissions.
After January 1, 2000, it shall be unlawful for any existing utility unit with a nameplate capacity below 75 MWe and an actual 1985 emissions rate equal to, or greater than, 1.20 lbs/mmBtu which became operational on or before December 31, 1965, which is owned by a utility operating company with, as of December 31, 1989, a total fossil fuel steam-electric generating capacity greater than 250 MWe, and less than 450 MWe which serves fewer than 78,000 electrical customers as of November 15, 1990, to exceed an annual sulfur dioxide emissions tonnage limitation equal to the product of its baseline multiplied by the lesser of its actual or allowable 1985 emission rate, divided by 2,000, unless the owner or operator holds allowances to emit not less than the units 1 total annual emissions. After January 1, 2010, it shall be unlawful for each unit subject to the emissions limitation requirements of this paragraph to exceed an annual emissions tonnage limitation equal to the product of its baseline multiplied by an emissions rate of 1.20 lbs/mmBtu, divided by 2,000, unless the owner or operator holds allowances to emit not less than the unit’s total annual emissions.
In addition to allowances allocated pursuant to paragraph (1) and section 7651b(a)(1) of this title as basic Phase II allowance allocations, beginning January 1, 2000, and for each calendar year thereafter until and including 2009, inclusive, the Administrator shall allocate annually for each unit subject to the emissions limitation requirements of paragraph (1) with an actual 1985 emissions rate equal to, or greater than, 1.20 lbs/mmBtu and less than 2.50 lbs/mmBtu and a baseline capacity factor of less than 60 percent, allowances from the reserve created pursuant to subsection (a)(2) in an amount equal to 1.20 lbs/mmBtu multiplied by 50 percent of the difference, on a Btu basis, between the unit’s baseline and the unit’s fuel consumption at a 60 percent capacity factor.
After January 1, 2000, it shall be unlawful for any existing utility unit with a nameplate capacity below 75 MWe and an actual 1985 emissions rate equal to, or greater than, 1.20 lbs/mmBtu which is part of an electric utility system which, as of November 15, 1990, (A) has at least 20 percent of its fossil-fuel capacity controlled by flue gas desulfurization devices, (B) has more than 10 percent of its fossil-fuel capacity consisting of coal-fired units of less than 75 MWe, and (C) has large units (greater than 400 MWe) all of which have difficult or very difficult FGD Retrofit Cost Factors (according to the Emissions and the FGD Retrofit Feasibility at the 200 Top Emitting Generating Stations, prepared for the United States Environmental Protection Agency on January 10, 1986) to exceed an annual sulfur dioxide emissions tonnage limitation equal to the product of its baseline multiplied by an emissions rate of 2.5 lbs/mmBtu, divided by 2,000, unless the owner or operator holds allowances to emit not less than the unit’s total annual emissions. After January 1, 2010, it shall be unlawful for each unit subject to the emissions limitation requirements of this paragraph to exceed an annual emissions tonnage limitation equal to the product of its baseline multiplied by an emissions rate of 1.20 lbs/mmBtu, divided by 2,000, unless the owner or operator holds for use allowances to emit not less than the unit’s total annual emissions.
After January 1, 2000, it shall be unlawful for any existing coal-fired utility unit the lesser of whose actual or allowable 1985 sulfur dioxide emissions rate is less than 0.60 lbs/mmBtu to exceed an annual sulfur dioxide tonnage emission limitation equal to the product of the unit’s baseline multiplied by (A) the lesser of 0.60 lbs/mmBtu or the unit’s allowable 1985 emissions rate, and (B) a numerical factor of 120 percent, divided by 2,000, unless the owner or operator of such unit holds allowances to emit not less than the unit’s total annual emissions.
After January 1, 2000, it shall be unlawful for any existing coal-fired utility unit the lesser of whose actual or allowable 1985 sulfur dioxide emissions rate is equal to, or greater than, 0.60 lbs/mmBtu and less than 1.20 lbs/mmBtu to exceed an annual sulfur dioxide tonnage emissions limitation equal to the product of the unit’s baseline multiplied by (A) the lesser of its actual 1985 emissions rate or its allowable 1985 emissions rate, and (B) a numerical factor of 120 percent, divided by 2,000, unless the owner or operator of such unit holds allowances to emit not less than the unit’s total annual emissions.
In addition to allowances allocated pursuant to paragraph (1) and section 7651b(a)(1) of this title as basic Phase II allowance allocations, at the election of the designated representative of the operating company, beginning January 1, 2000, and for each calendar year thereafter until and including 2009, the Administrator shall allocate annually for each unit subject to the emissions limitation requirements of paragraph (1) allowances from the reserve created pursuant to subsection (a)(2) in an amount equal to the amount by which (i) the product of the lesser of 0.60 lbs/mmBtu or the unit’s allowable 1985 emissions rate multiplied by the unit’s baseline adjusted to reflect operation at a 60 percent capacity factor, divided by 2,000, exceeds (ii) the number of allowances allocated for the unit pursuant to paragraph (1) and section 7651b(a)(1) of this title as basic Phase II allowance allocations.
In addition to allowances allocated pursuant to paragraph (2) and section 7651b(a)(1) of this title as basic Phase II allowance allocations, at the election of the designated representative of the operating company, beginning January 1, 2000, and for each calendar year thereafter until and including 2009, the Administrator shall allocate annually for each unit subject to the emissions limitation requirements of paragraph (2) allowances from the reserve created pursuant to subsection (a)(2) in an amount equal to the amount by which (i) the product of the lesser of the unit’s actual 1985 emissions rate or its allowable 1985 emissions rate multiplied by the unit’s baseline adjusted to reflect operation at a 60 percent capacity factor, divided by 2,000, exceeds (ii) the number of allowances allocated for the unit pursuant to paragraph (2) and section 7651b(a)(1) of this title as basic Phase II allowance allocations.
An operating company with units subject to the emissions limitation requirements of this subsection may elect the allocation of allowances as provided under subparagraphs (A) and (B). Such election shall apply to the annual allowance allocation for each and every unit in the operating company subject to the emissions limitation requirements of this subsection. The Administrator shall allocate allowances pursuant to subparagraphs (A) and (B) only in accordance with this subparagraph.
Notwithstanding any other provision of this section, at the election of the owner or operator, after January 1, 2000, the Administrator shall allocate in lieu of allocation, pursuant to paragraph (1), (2), (3), (5), or (6),2 allowances for a unit subject to the emissions limitation requirements of this subsection which commenced commercial operation* on or after January 1, 1981 and before December 31, 1985, which was subject to, and in compliance with, section 7411 of this title in an amount equal to the unit’s annual fuel consumption, on a Btu basis, at a 65 percent capacity factor multiplied by the unit’s allowable 1985 emissions rate, divided by 2,000.
For the purposes of this section, in the case of an oil- and gas-fired unit which has been awarded a clean coal technology demonstration grant as of January 1, 1991, by the United States Department of Energy, beginning January 1, 2000, the Administrator shall allocate for the unit allowances in an amount equal to the unit’s baseline multiplied by 1.20 lbs/mmBtu, divided by 2,000.
After January 1, 2000, it shall be unlawful for any existing oil and gas-fired utility unit the lesser of whose actual or allowable 1985 sulfur dioxide emission rate is equal to, or greater than, 0.60 lbs/mmBtu, but less than 1.20 lbs/mmBtu to exceed an annual sulfur dioxide tonnage limitation equal to the product of the unit’s baseline multiplied by (A) the lesser of the unit’s allowable 1985 emissions rate or its actual 1985 emissions rate and (B) a numerical factor of 120 percent divided by 2,000, unless the owner or operator of such unit holds allowances to emit not less than the unit’s total annual emissions.
After January 1, 2000, it shall be unlawful for any oil and gas-fired existing utility unit the lesser of whose actual or allowable 1985 emission rate is less than 0.60 lbs/mmBtu and whose average annual fuel consumption during the period 1980 through 1989 on a Btu basis was 90 percent or less in the form of natural gas to exceed an annual sulfur dioxide tonnage emissions limitation equal to the product of the unit’s baseline multiplied by (A) the lesser of 0.60 lbs/mmBtu or the unit’s allowable 1985 emissions, and (B) a numerical factor of 120 percent, divided by 2,000, unless the owner or operator of such unit holds allowances to emit not less than the unit’s total annual emissions.
In addition to allowances allocated pursuant to paragraph (1) as basic Phase II allowance allocations and section 7651b(a)(1) of this title, beginning January 1, 2000, the Administrator shall,3 in the case of any unit operated by a utility that furnishes electricity, electric energy, steam, and natural gas within an area consisting of a city and 1 contiguous county, and in the case of any unit owned by a State authority, the output of which unit is furnished within that same area consisting of a city and 1 contiguous county, the Administrator shall allocate for each unit in the utility its pro rata share of 7,000 allowances and for each unit in the State authority its pro rata share of 2,000 allowances.
After January 1, 2000, it shall be unlawful for any utility unit that has commenced commercial operation on or after January 1, 1986, but not later than September 30, 1990 to exceed an annual tonnage emission limitation equal to the product of the unit’s annual fuel consumption, on a Btu basis, at a 65 percent capacity factor multiplied by the unit’s allowable 1985 sulfur dioxide emission rate (converted, if necessary, to pounds per mmBtu), divided by 2,000 unless the owner or operator of such unit holds allowances to emit not less than the unit’s total annual emissions.
After January 1, 2000, the Administrator shall allocate allowances pursuant to section 7651b of this title to each unit which is listed in table B of this paragraph in an annual amount equal to the amount specified in table B.
TABLE B | |
|---|---|
Unit | Allowances |
Brandon Shores | 8,907 |
Miller 4 | 9,197 |
TNP One 2 | 4,000 |
Zimmer 1 | 18,458 |
Spruce 1 | 7,647 |
Clover 1 | 2,796 |
Clover 2 | 2,796 |
Twin Oak 2 | 1,760 |
Twin Oak 1 | 9,158 |
Cross 1 | 6,401 |
Malakoff 1 | 1,759 |
Notwithstanding any other paragraph of this subsection, for units subject to this paragraph, the Administrator shall not allocate allowances pursuant to any other paragraph of this subsection, Provided 4 that the owner or operator of a unit listed on Table B may elect an allocation of allowances under another paragraph of this subsection in lieu of an allocation under this paragraph.
Beginning January 1, 2000, the Administrator shall allocate to the owner or operator of any utility unit that commences commercial operation, or has commenced commercial operation, on or after October 1, 1990, but not later than December 31, 1992 allowances in an amount equal to the product of the unit’s annual fuel consumption, on a Btu basis, at a 65 percent capacity factor multiplied by the lesser of 0.30 lbs/mmBtu or the unit’s allowable sulfur dioxide emission rate (converted, if necessary, to pounds per mmBtu), divided by 2,000.
Beginning January 1, 2000, the Administrator shall allocate to the owner or operator of any utility unit that has commenced construction* before December 31, 1990 and that commences commercial operation between January 1, 1993 and December 31, 1995, allowances in an amount equal to the product of the unit’s annual fuel consumption, on a Btu basis, at a 65 percent capacity factor multiplied by the lesser of 0.30 lbs/mmBtu or the unit’s allowable sulfur dioxide emission rate (converted, if necessary, to pounds per mmBtu), divided by 2,000.
After January 1, 2000, it shall be unlawful for any existing utility unit that has completed conversion from predominantly gas fired existing operation to coal fired operation between January 1, 1985 and December 31, 1987, for which there has been allocated a proposed or final prohibition order pursuant to section 301(b) 5 of the Powerplant and Industrial Fuel Use Act of 1978 (42 U.S.C. 8301 et seq,6 repealed 1987) to exceed an annual sulfur dioxide tonnage emissions limitation equal to the product of the unit’s annual fuel consumption, on a Btu basis, at a 65 percent capacity factor multiplied by the lesser of 1.20 lbs/mmBtu or the unit’s allowable 1987 sulfur dioxide emissions rate, divided by 2,000, unless the owner or operator of such unit has obtained allowances equal to its actual emissions.
7 Unless the Administrator has approved a designation of such facility under section 7651i of this title, the provisions of this subchapter shall not apply to a “qualifying small power production facility” or “qualifying cogeneration facility” (within the meaning of section 796(17)(C) or 796(18)(B) of title 16) or to a “new independent power production facility” as defined in section 7651o of this title except 8 that clause (iii) 9 of such definition in section 7651o of this title shall not apply for purposes of this paragraph if, as of November 15, 1990,
an applicable power sales agreement has been executed;
the facility is the subject of a State regulatory authority order requiring an electric utility to enter into a power sales agreement with, purchase capacity from, or (for purposes of establishing terms and conditions of the electric utility’s purchase of power) enter into arbitration concerning, the facility;
an electric utility has issued a letter of intent or similar instrument committing to purchase power from the facility at a previously offered or lower price and a power sales agreement is executed within a reasonable period of time; or
the facility has been selected as a winning bidder in a utility competitive bid solicitation.
After January 1, 2000, it shall be unlawful for any oil- and gas-fired utility unit whose average annual fuel consumption during the period 1980 through 1989 on a Btu basis exceeded 90 percent in the form of natural gas to exceed an annual sulfur dioxide tonnage limitation equal to the product of the unit’s baseline multiplied by the unit’s actual 1985 emissions rate divided by 2,000 unless the owner or operator of such unit holds allowances to emit not less than the unit’s total annual emissions.
In addition to allowances allocated pursuant to paragraph (1) and section 7651b(a)(1) of this title as basic Phase II allowance allocations, beginning January 1, 2000, and for each calendar year thereafter until and including 2009, the Administrator shall allocate annually for each unit subject to the emissions limitation requirements of paragraph (1) allowances from the reserve created pursuant to subsection (a)(2) of this section in an amount equal to the unit’s baseline multiplied by 0.050 lbs/mmBtu, divided by 2,000.
In addition to allowances allocated pursuant to paragraph (1) and section 7651b(a)(1) of this title, beginning January 1, 2010, the Administrator shall allocate annually for each unit subject to the emissions limitation requirements of paragraph (1) allowances in an amount equal to the unit’s baseline multiplied by 0.050 lbs/mmBtu, divided by 2,000.
In addition to allowances allocated pursuant to this section and section 7651b(a)(1) of this title as basic Phase II allowance allocations, beginning January 1, 2000, the Administrator shall allocate annually allowances for each unit, subject to an emissions limitation requirement under this section, and located in a State that—
has experienced a growth in population in excess of 25 percent between 1980 and 1988 according to State Population and Household Estimates, With Age, Sex, and Components of Change: 1981–1988 allocated by the United States Department of Commerce, and
had an installed electrical generating capacity of more than 30,000,000 kw in 1988,
in an amount equal to the difference between (A) the number of allowances that would be allocated for the unit pursuant to the emissions limitation requirements of this section applicable to the unit adjusted to reflect the unit’s annual average fuel consumption on a Btu basis of any three consecutive calendar years between 1980 and 1989 (inclusive) as elected by the owner or operator and (B) the number of allowances allocated for the unit pursuant to the emissions limitation requirements of this section: Provided, That the number of allowances allocated pursuant to this subsection shall not exceed an annual total of 40,000. If necessary to meeting the 40,000 allowance restriction imposed under this subsection the Administrator shall reduce, pro rata, the additional annual allowances allocated to each unit under this subsection.
Beginning January 1, 2000, in addition to allowances allocated pursuant to this section and section 7651b(a)(1) of this title as basic Phase II allowance allocations, the Administrator shall allocate annually for each unit subject to the emissions limitation requirements of subsection (b)(1), (A) the lesser of whose actual or allowable 1980 emissions rate has declined by 50 percent or more as of November 15, 1990, (B) whose actual emissions rate is less than 1.2 lbs/mmBtu as of January 1, 2000, (C) which commenced operation after January 1, 1970, (D) which is owned by a utility company whose combined commercial and industrial kilowatt-hour sales have increased by more than 20 percent between calendar year 1980 and November 15, 1990, and (E) whose company-wide fossil-fuel sulfur dioxide emissions rate has declined 40 per centum or more from 1980 to 1988, allowances in an amount equal to the difference between (i) the number of allowances that would be allocated for the unit pursuant to the emissions limitation requirements of subsection (b)(1) adjusted to reflect the unit’s annual average fuel consumption on a Btu basis for any three consecutive years between 1980 and 1989 (inclusive) as elected by the owner or operator and (ii) the number of allowances allocated for the unit pursuant to the emissions limitation requirements of subsection (b)(1) of this section: Provided, That the number of allowances allocated pursuant to this paragraph shall not exceed an annual total of 5,000. If necessary to meeting the 5,000-allowance restriction imposed in the last clause of the preceding sentence the Administrator shall reduce, pro rata, the additional allowances allocated to each unit pursuant to this paragraph.
Beginning January 1, 2000, in addition to allowances allocated pursuant to this section and section 7651b(a)(1) of this title as basic Phase II allowance allocations, the Administrator shall allocate annually for each existing municipally owned oil and gas-fired utility unit with nameplate capacity equal to, or less than, 40 MWe, the lesser of whose actual or allowable 1985 sulfur dioxide emission rate is less than 1.20 lbs/mmBtu, allowances in an amount equal to the product of the unit’s annual fuel consumption on a Btu basis at a 60 percent capacity factor multiplied by the lesser of its allowable 1985 emission rate or its actual 1985 emission rate, divided by 2,000.
Source credit: (July 14, 1955, ch. 360, title IV, § 405, as added Pub. L. 101–549, title IV, § 401, Nov. 15, 1990, 104 Stat. 2605.)
- 1955Enacted · Pub. L. 101-549 · 104 Stat. 2605
A history note hasn’t been published yet. The record shows enactment by Pub. L. 101-549 on 1955-07-14.
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