---
kind: "section"
citation: "42 U.S.C. § 7651c"
title: "42"
title_heading: "The Public Health and Welfare"
number: "7651c"
heading: "Phase I sulfur dioxide requirements"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/7651c"
units:
- "Chapter 85 — Air Pollution Prevention and Control"
- "Subchapter IV–A — Acid Deposition Control"
---
# §7651c. Phase I sulfur dioxide requirements
- (a) **Emission limitations—**
- (1) After January 1, 1995, each source that includes one or more [affected units](/usc/42/7651a.md?p=2) listed in table A is an [affected source](/usc/42/7651a.md?p=1) under this section. After January 1, 1995, it shall be unlawful for any [affected unit](/usc/42/7651a.md?p=2) (other than an eligible phase I [unit](/usc/42/7651a.md?p=15) under [subsection (d)(2)](#d-2)) to emit sulfur dioxide in excess of the tonnage limitation stated as a total number of [allowances](/usc/42/7651a.md?p=3) in table A for phase I, unless (A) the emissions reduction requirements applicable to such [unit](/usc/42/7651a.md?p=15) have been achieved pursuant to subsection [(b)](#b) or [(d)](#d), or (B) the [owner](/usc/42/13641.md?p=4) or operator of such [unit](/usc/42/7651a.md?p=15) holds [allowances](/usc/42/7651a.md?p=3) to emit not less than the [unit](/usc/42/7651a.md?p=15)’s total annual emissions, except that, after January 1, 2000, the emissions limitations established in this section shall be superseded by those established in [section 7651d of this title](/usc/42/7651d.md). The [owner](/usc/42/13641.md?p=4) or operator of any [unit](/usc/42/7651a.md?p=15) in [violation](/usc/42/2000e–16a.md?p=c) of this section shall be fully liable for such [violation](/usc/42/2000e–16a.md?p=c) including, but not limited to, liability for fulfilling the obligations specified in [section 7651j of this title](/usc/42/7651j.md).
- (2) Not later than December 31, 1991, the [Administrator](/usc/42/7602.md?p=a) shall determine the total tonnage of reductions in the emissions of sulfur dioxide from all [utility units](/usc/42/7651a.md?p=17-A) in calendar year 1995 that will occur as a result of compliance with the emissions limitation requirements of this section, and shall establish a [reserve](/usc/42/7651a.md?p=13) of [allowances](/usc/42/7651a.md?p=3) equal in amount to the number of tons determined thereby not to exceed a total of 3.50 million tons. In making such a determination, the [Administrator](/usc/42/7602.md?p=a) shall compute for each [unit](/usc/42/7651a.md?p=15) subject to the emissions limitation requirements of this section the difference between:
- (A) the product of its [baseline](/usc/42/7651a.md?p=4) multiplied by the lesser of each [unit](/usc/42/7651a.md?p=15)’s [allowable 1985 emissions rate](/usc/42/7651a.md?p=18) and its actual 1985 emissions rate, divided by 2,000, and
- (B) the product of each [unit](/usc/42/7651a.md?p=15)’s [baseline](/usc/42/7651a.md?p=4) multiplied by 2.50 lbs/mmBtu divided by 2,000,
and sum the computations. The [Administrator](/usc/42/7602.md?p=a) shall adjust the foregoing calculation to reflect projected calendar year 1995 utilization of the [units](/usc/42/7651a.md?p=15) subject to the emissions limitations of this subchapter that the [Administrator](/usc/42/7602.md?p=a) finds would have occurred in the absence of the imposition of such requirements. Pursuant to [subsection (d)](#d), the [Administrator](/usc/42/7602.md?p=a) shall allocate [allowances](/usc/42/7651a.md?p=3) from the [reserve](/usc/42/7651a.md?p=13) established hereinunder until the earlier of such time as all such [allowances](/usc/42/7651a.md?p=3) in the [reserve](/usc/42/7651a.md?p=13) are allocated or December 31, 1999.
- (3) In addition to [allowances](/usc/42/7651a.md?p=3) allocated pursuant to [paragraph (1)](#a-1), in each calendar year beginning in 1995 and ending in 1999, inclusive, the [Administrator](/usc/42/7602.md?p=a) shall allocate for each [unit](/usc/42/7651a.md?p=15) on Table A that is located in the [States](/usc/42/7651a.md?p=14) of Illinois, Indiana, or Ohio (other than [units](/usc/42/7651a.md?p=15) at Kyger Creek, Clifty Creek and Joppa Steam), [allowances](/usc/42/7651a.md?p=3) in an amount equal to 200,000 multiplied by the [unit](/usc/42/7651a.md?p=15)’s pro rata share of the total number of [allowances](/usc/42/7651a.md?p=3) allocated for all [units](/usc/42/7651a.md?p=15) on Table A in the 3 [States](/usc/42/7651a.md?p=14) (other than [units](/usc/42/7651a.md?p=15) at Kyger Creek, Clifty Creek, and Joppa Steam) pursuant to [paragraph (1)](#a-1). Such [allowances](/usc/42/7651a.md?p=3) shall be excluded from the calculation of the [reserve](/usc/42/7651a.md?p=13) under [paragraph (2)](#a-2).
- (b) **Substitutions—** The [owner](/usc/42/13641.md?p=4) or operator of an [affected unit](/usc/42/7651a.md?p=2) under [subsection (a)](#a) may include in its [section 7651g of this title](/usc/42/7651g.md) permit application and proposed [compliance plan](/usc/42/7651a.md?p=6) a proposal to reassign, in whole or in part, the [affected unit](/usc/42/7651a.md?p=2)’s sulfur dioxide reduction requirements to any other [unit](/usc/42/7651a.md?p=15)(s) under the control of such [owner](/usc/42/13641.md?p=4) or operator. Such proposal shall specify—
- (1) the designation of the substitute [unit](/usc/42/7651a.md?p=15) or [units](/usc/42/7651a.md?p=15) to which any part of the reduction obligations of [subsection (a)](#a) shall be required, in addition to, or in lieu of, any original [affected units](/usc/42/7651a.md?p=2) designated under such subsection;
- (2) the original [affected unit](/usc/42/7651a.md?p=2)’s [baseline](/usc/42/7651a.md?p=4), the actual and [allowable 1985 emissions rate](/usc/42/7651a.md?p=18) for sulfur dioxide, and the authorized annual [allowance](/usc/42/7651a.md?p=3) [allocation](/usc/42/2021b.md?p=2) stated in table A;
- (3) calculation of the annual average tonnage for calendar years 1985, 1986, and 1987, emitted by the substitute [unit](/usc/42/7651a.md?p=15) or [units](/usc/42/7651a.md?p=15), based on the [baseline](/usc/42/7651a.md?p=4) for each [unit](/usc/42/7651a.md?p=15), as defined in [section 7651a(d)](/usc/42/7651a.md)[^1] of this title, multiplied by the lesser of the [unit](/usc/42/7651a.md?p=15)’s actual or [allowable 1985 emissions rate](/usc/42/7651a.md?p=18);
- (4) the emissions rates and tonnage limitations that would be applicable to the original and substitute [affected units](/usc/42/7651a.md?p=2) under the substitution proposal;
- (5) documentation, to the satisfaction of the [Administrator](/usc/42/7602.md?p=a), that the reassigned tonnage limits will, in total, achieve the same or greater emissions reduction than would have been achieved by the original [affected unit](/usc/42/7651a.md?p=2) and the substitute [unit](/usc/42/7651a.md?p=15) or [units](/usc/42/7651a.md?p=15) without such substitution; and
- (6) such other information as the [Administrator](/usc/42/7602.md?p=a) may require.
- (c) **Administrator’s action on substitution proposals—**
- (1) The [Administrator](/usc/42/7602.md?p=a) shall take final action on such substitution proposal in accordance with [section 7651g(c) of this title](/usc/42/7651g.md?p=c) if the substitution proposal fulfills the requirements of this subsection. The [Administrator](/usc/42/7602.md?p=a) may approve a substitution proposal in whole or in part and with such [modifications](/usc/42/7501.md?p=4) or conditions as may be consistent with the orderly functioning of the [allowance](/usc/42/7651a.md?p=3) system and which will ensure the emissions reductions contemplated by this subchapter. If a proposal does not meet the requirements of [subsection (b)](#b), the [Administrator](/usc/42/7602.md?p=a) shall disapprove it. The [owner](/usc/42/13641.md?p=4) or operator of a [unit](/usc/42/7651a.md?p=15) listed in table A shall not substitute another [unit](/usc/42/7651a.md?p=15) or [units](/usc/42/7651a.md?p=15) without the prior approval of the [Administrator](/usc/42/7602.md?p=a).
- (2) Upon approval of a substitution proposal, each substitute [unit](/usc/42/7651a.md?p=15), and each source with such [unit](/usc/42/7651a.md?p=15), shall be deemed affected under this subchapter, and the [Administrator](/usc/42/7602.md?p=a) shall issue a permit to the original and substitute [affected source](/usc/42/7651a.md?p=1) and [unit](/usc/42/7651a.md?p=15) in accordance with the approved substitution plan and [section 7651g of this title](/usc/42/7651g.md). The [Administrator](/usc/42/7602.md?p=a) shall allocate [allowances](/usc/42/7651a.md?p=3) for the original and substitute [affected units](/usc/42/7651a.md?p=2) in accordance with the approved substitution proposal pursuant to [section 7651b of this title](/usc/42/7651b.md). It shall be unlawful for any source or [unit](/usc/42/7651a.md?p=15) that is allocated [allowances](/usc/42/7651a.md?p=3) pursuant to this section to emit sulfur dioxide in excess of the emissions limitation provided for in the approved substitution permit and plan unless the [owner](/usc/42/13641.md?p=4) or operator of each [unit](/usc/42/7651a.md?p=15) governed by the permit and approved substitution plan holds [allowances](/usc/42/7651a.md?p=3) to emit not less than the [units](/usc/42/7651a.md?p=15)[^2] total annual emissions. The [owner](/usc/42/13641.md?p=4) or operator of any original or substitute [affected unit](/usc/42/7651a.md?p=2) operated in [violation](/usc/42/2000e–16a.md?p=c) of this subsection shall be fully liable for such [violation](/usc/42/2000e–16a.md?p=c), including liability for fulfilling the obligations specified in [section 7651j of this title](/usc/42/7651j.md). If a substitution proposal is disapproved, the [Administrator](/usc/42/7602.md?p=a) shall allocate [allowances](/usc/42/7651a.md?p=3) to the original [affected unit](/usc/42/7651a.md?p=2) or [units](/usc/42/7651a.md?p=15) in accordance with [subsection (a)](#a).
- (d) **Eligible phase I extension units—**
- (1) The [owner](/usc/42/13641.md?p=4) or operator of any [affected unit](/usc/42/7651a.md?p=2) subject to an emissions limitation requirement under this section may petition the [Administrator](/usc/42/7602.md?p=a) in its permit application under [section 7651g of this title](/usc/42/7651g.md) for an extension of 2 years of the deadline for meeting such requirement, provided that the [owner](/usc/42/13641.md?p=4) or operator of any such [unit](/usc/42/7651a.md?p=15) holds [allowances](/usc/42/7651a.md?p=3) to emit not less than the [unit](/usc/42/7651a.md?p=15)’s total annual emissions for each of the 2 years of the period of extension. To qualify for such an extension, the [affected unit](/usc/42/7651a.md?p=2) must either employ a [qualifying phase I technology](/usc/42/7651a.md?p=19), or transfer its phase I emissions reduction obligation to a [unit](/usc/42/7651a.md?p=15) employing a [qualifying phase I technology](/usc/42/7651a.md?p=19). Such transfer shall be accomplished in accordance with a [compliance plan](/usc/42/7651a.md?p=6), submitted and approved under [section 7651g of this title](/usc/42/7651g.md), that shall govern operations at all [units](/usc/42/7651a.md?p=15) included in the transfer, and that specifies the emissions reduction requirements imposed pursuant to this subchapter.
- (2) Such extension proposal shall—
- (A) specify the [unit](/usc/42/7651a.md?p=15) or [units](/usc/42/7651a.md?p=15) proposed for designation as an eligible phase I extension [unit](/usc/42/7651a.md?p=15);
- (B) provide a copy of an executed contract, which may be contingent upon the [Administrator](/usc/42/7602.md?p=a) approving the proposal, for the design engineering, and [construction](/usc/42/7651a.md?p=23) of the [qualifying phase I technology](/usc/42/7651a.md?p=19) for the extension [unit](/usc/42/7651a.md?p=15), or for the [unit](/usc/42/7651a.md?p=15) or [units](/usc/42/7651a.md?p=15) to which the extension [unit](/usc/42/7651a.md?p=15)’s emission reduction obligation is to be transferred;
- (C) specify the [unit](/usc/42/7651a.md?p=15)’s or [units](/usc/42/7651a.md?p=15)’ [baseline](/usc/42/7651a.md?p=4), actual 1985 emissions rate, [allowable 1985 emissions rate](/usc/42/7651a.md?p=18), and projected utilization for calendar years 1995 through 1999;
- (D) require CEMS on both the eligible phase I extension [unit](/usc/42/7651a.md?p=15) or [units](/usc/42/7651a.md?p=15) and the transfer [unit](/usc/42/7651a.md?p=15) or [units](/usc/42/7651a.md?p=15) beginning no later than January 1, 1995; and
- (E) specify the [emission limitation](/usc/42/7602.md?p=k) and number of [allowances](/usc/42/7651a.md?p=3) expected to be necessary for annual operation after the [qualifying phase I technology](/usc/42/7651a.md?p=19) has been installed.
- (3) The [Administrator](/usc/42/7602.md?p=a) shall review and take final action on each extension proposal in order of receipt, consistent with [section 7651g of this title](/usc/42/7651g.md), and for an approved proposal shall designate the [unit](/usc/42/7651a.md?p=15) or [units](/usc/42/7651a.md?p=15) as an eligible phase I extension [unit](/usc/42/7651a.md?p=15). The [Administrator](/usc/42/7602.md?p=a) may approve an extension proposal in whole or in part, and with such [modifications](/usc/42/7501.md?p=4) or conditions as may be necessary, consistent with the orderly functioning of the [allowance](/usc/42/7651a.md?p=3) system, and to ensure the emissions reductions contemplated by the[^3] subchapter.
- (4) In order to determine the number of proposals eligible for [allocations](/usc/42/2021b.md?p=2) from the [reserve](/usc/42/7651a.md?p=13) under [subsection (a)(2)](#a-2) and the number of [allowances](/usc/42/7651a.md?p=3) remaining available after each proposal is acted upon, the [Administrator](/usc/42/7602.md?p=a) shall reduce the total number of [allowances](/usc/42/7651a.md?p=3) remaining available in the [reserve](/usc/42/7651a.md?p=13) by the number of [allowances](/usc/42/7651a.md?p=3) calculated according to subparagraphs [(A)](#d-4-A), [(B)](#d-4-B) and [(C)](#d-4-C) until either no [allowances](/usc/42/7651a.md?p=3) remain available in the [reserve](/usc/42/7651a.md?p=13) for further [allocation](/usc/42/2021b.md?p=2) or all approved proposals have been acted upon. If no [allowances](/usc/42/7651a.md?p=3) remain available in the [reserve](/usc/42/7651a.md?p=13) for further [allocation](/usc/42/2021b.md?p=2) before all proposals have been acted upon by the [Administrator](/usc/42/7602.md?p=a), any pending proposals shall be disapproved. The [Administrator](/usc/42/7602.md?p=a) shall calculate [allowances](/usc/42/7651a.md?p=3) equal to—
- (A) the difference between the lesser of the average annual emissions in calendar years 1988 and 1989 or the projected emissions tonnage for calendar year 1995 of each eligible phase I extension [unit](/usc/42/7651a.md?p=15), as designated under [paragraph (3)](#d-3), and the product of the [unit](/usc/42/7651a.md?p=15)’s [baseline](/usc/42/7651a.md?p=4) multiplied by an emission rate of 2.50 lbs/mmBtu, divided by 2,000;
- (B) the difference between the lesser of the average annual emissions in calendar years 1988 and 1989 or the projected emissions tonnage for calendar year 1996 of each eligible phase I extension [unit](/usc/42/7651a.md?p=15), as designated under [paragraph (3)](#d-3), and the product of the [unit](/usc/42/7651a.md?p=15)’s [baseline](/usc/42/7651a.md?p=4) multiplied by an emission rate of 2.50 lbs/mmBtu, divided by 2,000; and
- (C) the amount by which (i) the product of each [unit](/usc/42/7651a.md?p=15)’s [baseline](/usc/42/7651a.md?p=4) multiplied by an emission rate of 1.20 lbs/mmBtu, divided by 2,000, exceeds (ii) the tonnage level specified under [subparagraph (E)](#d-2-E) of paragraph (2) of this subsection multiplied by a factor of 3.
- (5) Each eligible Phase I extension [unit](/usc/42/7651a.md?p=15) shall receive [allowances](/usc/42/7651a.md?p=3) determined under subsection [(a)(1)](#a-1) or [(c)](#c) of this section. In addition, for calendar year 1995, the [Administrator](/usc/42/7602.md?p=a) shall allocate to each eligible Phase I extension [unit](/usc/42/7651a.md?p=15), from the [allowance](/usc/42/7651a.md?p=3) [reserve](/usc/42/7651a.md?p=13) created pursuant to [subsection (a)(2)](#a-2), [allowances](/usc/42/7651a.md?p=3) equal to the difference between the lesser of the average annual emissions in calendar years 1988 and 1989 or its projected emissions tonnage for calendar year 1995 and the product of the [unit](/usc/42/7651a.md?p=15)’s [baseline](/usc/42/7651a.md?p=4) multiplied by an emission rate of 2.50 lbs/mmBtu, divided by 2,000. In calendar year 1996, the [Administrator](/usc/42/7602.md?p=a) shall allocate for each eligible [unit](/usc/42/7651a.md?p=15), from the [allowance](/usc/42/7651a.md?p=3) [reserve](/usc/42/7651a.md?p=13) created pursuant to [subsection (a)(2)](#a-2) of this section, [allowances](/usc/42/7651a.md?p=3) equal to the difference between the lesser of the average annual emissions in calendar years 1988 and 1989 or its projected emissions tonnage for calendar year 1996 and the product of the [unit](/usc/42/7651a.md?p=15)’s [baseline](/usc/42/7651a.md?p=4) multiplied by an emission rate of 2.50 lbs/mmBtu, divided by 2,000. It shall be unlawful for any source or [unit](/usc/42/7651a.md?p=15) subject to an approved extension plan under this subsection to emit sulfur dioxide in excess of the emissions limitations provided for in the permit and approved extension plan, unless the [owner](/usc/42/13641.md?p=4) or operator of each [unit](/usc/42/7651a.md?p=15) governed by the permit and approved plan holds [allowances](/usc/42/7651a.md?p=3) to emit not less than the [unit](/usc/42/7651a.md?p=15)’s total annual emissions.
- (6) In addition to [allowances](/usc/42/7651a.md?p=3) specified in [paragraph (5)](#d-5), the [Administrator](/usc/42/7602.md?p=a) shall allocate for each eligible Phase I extension [unit](/usc/42/7651a.md?p=15) employing [qualifying Phase I technology](/usc/42/7651a.md?p=19), for calendar years 1997, 1998, and 1999, additional [allowances](/usc/42/7651a.md?p=3), from any remaining [allowances](/usc/42/7651a.md?p=3) in the [reserve](/usc/42/7651a.md?p=13) created pursuant to [subsection (a)(2)](#a-2), following the reduction in the [reserve](/usc/42/7651a.md?p=13) provided for in [paragraph (4)](#d-4), not to exceed the amount by which (A) the product of each eligible [unit](/usc/42/7651a.md?p=15)’s [baseline](/usc/42/7651a.md?p=4) times an emission rate of 1.20 lbs/mmBtu, divided by 2,000, exceeds (B) the tonnage level specified under [subparagraph (E)](#d-2-E) of paragraph (2) of this subsection.
- (7) After January 1, 1997, in addition to any liability under this chapter, including under [section 7651j of this title](/usc/42/7651j.md), if any eligible phase I extension [unit](/usc/42/7651a.md?p=15) employing [qualifying phase I technology](/usc/42/7651a.md?p=19) or any transfer [unit](/usc/42/7651a.md?p=15) under this subsection emits sulfur dioxide in excess of the annual tonnage limitation specified in the extension plan, as approved in paragraph (3) of this subsection, the [Administrator](/usc/42/7602.md?p=a) shall, in the calendar year following such excess, deduct [allowances](/usc/42/7651a.md?p=3) equal to the amount of such excess from such [unit](/usc/42/7651a.md?p=15)’s annual [allowance](/usc/42/7651a.md?p=3) [allocation](/usc/42/2021b.md?p=2).
- (e) **Allocation of allowances—**
- (1) In the case of a [unit](/usc/42/7651a.md?p=15) that receives authorization from the Governor of the [State](/usc/42/7651a.md?p=14) in which such [unit](/usc/42/7651a.md?p=15) is located to make reductions in the emissions of sulfur dioxide prior to calendar year 1995 and that is part of a utility system that meets the following requirements: (A) the total coal-fired generation within the utility system as a percentage of total system generation decreased by more than 20 percent between January 1, 1980, and December 31, 1985; and (B) the weighted [capacity factor](/usc/42/7651a.md?p=5) of all coal-fired [units](/usc/42/7651a.md?p=15) within the utility system averaged over the period from January 1, 1985, through December 31, 1987, was below 50 percent, the [Administrator](/usc/42/7602.md?p=a) shall allocate [allowances](/usc/42/7651a.md?p=3) under this paragraph for the [unit](/usc/42/7651a.md?p=15) pursuant to this subsection. The [Administrator](/usc/42/7602.md?p=a) shall allocate [allowances](/usc/42/7651a.md?p=3) for a [unit](/usc/42/7651a.md?p=15) that is an [affected unit](/usc/42/7651a.md?p=2) pursuant to [section 7651d of this title](/usc/42/7651d.md) (but is not also an [affected unit](/usc/42/7651a.md?p=2) under this section) and part of a utility system that includes 1 or more [affected units](/usc/42/7651a.md?p=2) under [section 7651d of this title](/usc/42/7651d.md) for reductions in the emissions of sulfur dioxide made during the period 1995–1999 if the [unit](/usc/42/7651a.md?p=15) meets the requirements of this subsection and the requirements of the preceding sentence, except that for the purposes of applying this subsection to any such [unit](/usc/42/7651a.md?p=15), the prior year concerned as specified below, shall be any year after January 1, 1995 but prior to January 1, 2000.
- (2) In the case of an [affected unit](/usc/42/7651a.md?p=2) under this section described in subparagraph (A),[^4] the [allowances](/usc/42/7651a.md?p=3) allocated under this subsection for early reductions in any prior year may not exceed the amount which (A) the product of the [unit](/usc/42/7651a.md?p=15)’s [baseline](/usc/42/7651a.md?p=4) multiplied by the [unit](/usc/42/7651a.md?p=15)’s 1985 actual sulfur dioxide emission rate (in lbs. per mmBtu), divided by 2,000, exceeds (B) the [allowances](/usc/42/7651a.md?p=3) specified for such [unit](/usc/42/7651a.md?p=15) in Table A. In the case of an [affected unit](/usc/42/7651a.md?p=2) under [section 7651d of this title](/usc/42/7651d.md) described in subparagraph (A),[^4] the [allowances](/usc/42/7651a.md?p=3) awarded under this subsection for early reductions in any prior year may not exceed the amount by which (i) the product of the quantity of fossil fuel consumed by the [unit](/usc/42/7651a.md?p=15) (in mmBtu) in the prior year multiplied by the lesser of 2.50 or the most stringent emission rate (in lbs. per mmBtu) applicable to the [unit](/usc/42/7651a.md?p=15) under the [applicable implementation plan](/usc/42/7602.md?p=q), divided by 2,000, exceeds (ii) the [unit](/usc/42/7651a.md?p=15)’s actual tonnage of sulfur dioxide emission for the prior year concerned. [Allowances](/usc/42/7651a.md?p=3) allocated under this subsection for [units](/usc/42/7651a.md?p=15) referred to in subparagraph (A)[^4] may be allocated only for emission reductions achieved as a result of physical changes or changes in the method of operation made after November 15, 1990, including changes in the type or quality of fossil fuel consumed.
- (3) In no event shall the provisions of this paragraph[^5] be interpreted as an event of force majeur[^6] or a commercial impractibility[^7] or in any other way as a basis for excused nonperformance by a utility system under a coal sales contract in effect before November 15, 1990.
| Table A.—[Affected Sources](/usc/42/7651a.md?p=1) and [Units](/usc/42/7651a.md?p=15) in Phase I and Their Sulfur Dioxide [Allowances](/usc/42/7651a.md?p=3) (tons) | | | |
| --- | --- | --- | --- |
| [State](/usc/42/7651a.md?p=14) | Plant Name | [Generator](/usc/42/7651a.md?p=9) | Phase I [Allowances](/usc/42/7651a.md?p=3) |
| Alabama | Colbert | 1
2
3
4
5 | 13,570
15,310
15,400
15,410
37,180 |
| | E.C. Gaston | 1
2
3
4
5 | 18,100
18,540
18,310
19,280
59,840 |
| Florida | Big Bend | 1
2
3 | 28,410
27,100
26,740 |
| | Crist | 6
7 | 19,200
31,680 |
| Georgia | Bowen | 1
2
3
4 | 56,320
54,770
71,750
71,740 |
| | Hammond | 1
2
3
4 | 8,780
9,220
8,910
37,640 |
| | J. McDonough | 1
2 | 19,910
20,600 |
| | Wansley | 1
2 | 70,770
65,430 |
| | Yates | 1
2
3
4
5
6
7 | 7,210
7,040
6,950
8,910
9,410
24,760
21,480 |
| Illinois | Baldwin | 1
2
3 | 42,010
44,420
42,550 |
| | Coffeen | 1
2 | 11,790
35,670 |
| | Grand Tower | 4 | 5,910 |
| | Hennepin | 2 | 18,410 |
| | Joppa Steam | 1
2
3
4
5
6 | 12,590
10,770
12,270
11,360
11,420
10,620 |
| | Kincaid | 1
2 | 31,530
33,810 |
| | Meredosia | 3 | 13,890 |
| | Vermilion | 2 | 8,880 |
| Indiana | Bailly | 7
8 | 11,180
15,630 |
| | Breed | 1 | 18,500 |
| | Cayuga | 1
2 | 33,370
34,130 |
| | Clifty Creek | 1
2
3
4
5
6 | 20,150
19,810
20,410
20,080
19,360
20,380 |
| | E. W. Stout | 5
6
7 | 3,880
4,770
23,610 |
| | F. B. Culley | 2
3 | 4,290
16,970 |
| | F. E. Ratts | 1
2 | 8,330
8,480 |
| | Gibson | 1
2
3
4 | 40,400
41,010
41,080
40,320 |
| | H. T. Pritchard | 6 | 5,770 |
| | Michigan City | 12 | 23,310 |
| | Petersburg | 1
2 | 16,430
32,380 |
| | R. Gallagher | 1
2
3
4 | 6,490
7,280
6,530
7,650 |
| | Tanners Creek | 4 | 24,820 |
| | Wabash River | 1
2
3
5
6 | 4,000
2,860
3,750
3,670
12,280 |
| | Warrick | 4 | 26,980 |
| Iowa | Burlington | 1 | 10,710 |
| | Des Moines | 7 | 2,320 |
| | George Neal | 1 | 1,290 |
| | M.L. Kapp | 2 | 13,800 |
| | Prairie Creek | 4 | 8,180 |
| | Riverside | 5 | 3,990 |
| Kansas | Quindaro | 2 | 4,220 |
| Kentucky | Coleman | 1
2
3 | 11,250
12,840
12,340 |
| | Cooper | 1
2 | 7,450
15,320 |
| | E.W. Brown | 1
2
3 | 7,110
10,910
26,100 |
| | Elmer Smith | 1
2 | 6,520
14,410 |
| | Ghent | 1 | 28,410 |
| | Green River | 4 | 7,820 |
| | H.L. Spurlock | 1 | 22,780 |
| | Henderson II | 1
2 | 13,340
12,310 |
| | Paradise | 3 | 59,170 |
| | Shawnee | 10 | 10,170 |
| Maryland | Chalk Point | 1
2 | 21,910
24,330 |
| | C. P. Crane | 1
2 | 10,330
9,230 |
| | Morgantown | 1
2 | 35,260
38,480 |
| Michigan | J. H. Campbell | 1
2 | 19,280
23,060 |
| Minnesota | High Bridge | 6 | 4,270 |
| Mississippi | Jack Watson | 4
5 | 17,910
36,700 |
| Missouri | Asbury | 1 | 16,190 |
| | James River | 5 | 4,850 |
| | Labadie | 1
2
3
4 | 40,110
37,710
40,310
35,940 |
| | Montrose | 1
2
3 | 7,390
8,200
10,090 |
| | New Madrid | 1
2 | 28,240
32,480 |
| | Sibley | 3 | 15,580 |
| | Sioux | 1
2 | 22,570
23,690 |
| | Thomas Hill | 1
2 | 10,250
19,390 |
| New Hampshire | Merrimack | 1
2 | 10,190
22,000 |
| New Jersey | B.L. England | 1
2 | 9,060
11,720 |
| New York | Dunkirk | 3
4 | 12,600
14,060 |
| | Greenidge | 4 | 7,540 |
| | Milliken | 1
2 | 11,170
12,410 |
| | Northport | 1
2
3 | 19,810
24,110
26,480 |
| | Port Jefferson | 3
4 | 10,470
12,330 |
| Ohio | Ashtabula | 5 | 16,740 |
| | Avon Lake | 8
9 | 11,650
30,480 |
| | Cardinal | 1
2 | 34,270
38,320 |
| | Conesville | 1
2
3
4 | 4,210
4,890
5,500
48,770 |
| | Eastlake | 1
2
3
4
5 | 7,800
8,640
10,020
14,510
34,070 |
| | Edgewater | 4 | 5,050 |
| | Gen. J.M. Gavin | 1
2 | 79,080
80,560 |
| | Kyger Creek | 1
2
3
4
5 | 19,280
18,560
17,910
18,710
18,740 |
| | Miami Fort | 5
6
7 | 760
11,380
38,510 |
| | Muskingum River | 1
2
3
4
5 | 14,880
14,170
13,950
11,780
40,470 |
| | Niles | 1
2 | 6,940
9,100 |
| | Picway | 5 | 4,930 |
| | R.E. Burger | 3
4
5 | 6,150
10,780
12,430 |
| | W.H. Sammis | 5
6
7 | 24,170
39,930
43,220 |
| | W.C. Beckjord | 5
6 | 8,950
23,020 |
| Pennsylvania | Armstrong | 1
2 | 14,410
15,430 |
| | Brunner Island | 1
2
3 | 27,760
31,100
53,820 |
| | Cheswick | 1 | 39,170 |
| | Conemaugh | 1
2 | 59,790
66,450 |
| | Hatfield’s Ferry | 1
2
3 | 37,830
37,320
40,270 |
| | Martins Creek | 1
2 | 12,660
12,820 |
| | Portland | 1
2 | 5,940
10,230 |
| | Shawville | 1
2
3
4 | 10,320
10,320
14,220
14,070 |
| | Sunbury | 3
4 | 8,760
11,450 |
| Tennessee | Allen | 1
2
3 | 15,320
16,770
15,670 |
| | Cumberland | 1
2 | 86,700
94,840 |
| | Gallatin | 1
2
3
4 | 17,870
17,310
20,020
21,260 |
| | Johnsonville | 1
2
3
4
5
6
7
8
9
10 | 7,790
8,040
8,410
7,990
8,240
7,890
8,980
8,700
7,080
7,550 |
| West Virginia | Albright | 3 | 12,000 |
| | Fort Martin | 1
2 | 41,590
41,200 |
| | Harrison | 1
2
3 | 48,620
46,150
41,500 |
| | Kammer | 1
2
3 | 18,740
19,460
17,390 |
| | Mitchell | 1
2 | 43,980
45,510 |
| | Mount Storm | 1
2
3 | 43,720
35,580
42,430 |
| Wisconsin | Edgewater | 4 | 24,750 |
| | La Crosse/Genoa | 3 | 22,700 |
| | Nelson Dewey | 1
2 | 6,010
6,680 |
| | N. Oak Creek | 1
2
3
4 | 5,220
5,140
5,370
6,320 |
| | Pulliam | 8 | 7,510 |
| | S. Oak Creek | 5
6
7
8 | 9,670
12,040
16,180
15,790 |
- (f) **Energy conservation and renewable energy—**
- (1) **Definitions—** As used in this subsection:
- (A) **Qualified energy conservation measure—** The term “qualified energy conservation measure” means a cost effective measure, as identified by the [Administrator](/usc/42/7602.md?p=a) in consultation with the [Secretary](/usc/42/242q–4.md?p=2) of Energy, that increases the efficiency of the use of electricity provided by an electric utility to its [customers](/usc/42/7275.md?p=5).
- (B) **Qualified renewable energy—** The term “qualified renewable energy” means energy derived from biomass, solar, geothermal, or wind as identified by the [Administrator](/usc/42/7602.md?p=a) in consultation with the [Secretary](/usc/42/242q–4.md?p=2) of Energy.
- (C) **Electric utility—** The term “electric utility” means any [person](/usc/42/7602.md?p=e), [State agency](/usc/42/300s–3.md?p=12), or Federal [agency](/usc/42/8262.md?p=1), which sells electric energy.
- (2) **Allowances for emissions avoided through energy conservation and renewable energy—**
- (A) **In general—** The regulations under paragraph (4) of this subsection shall provide that for each ton of sulfur dioxide emissions avoided by an electric utility, during the applicable period, through the use of qualified [energy conservation measures](/usc/42/8262.md?p=5) or qualified renewable energy, the [Administrator](/usc/42/7602.md?p=a) shall allocate a single [allowance](/usc/42/7651a.md?p=3) to such electric utility, on a first-come-first-served basis from the Conservation and Renewable Energy [Reserve](/usc/42/7651a.md?p=13) established under [subsection (g)](#g), up to a total of 300,000 [allowances](/usc/42/7651a.md?p=3) for [allocation](/usc/42/2021b.md?p=2) from such [Reserve](/usc/42/7651a.md?p=13).
- (B) **Requirements for issuance—** The [Administrator](/usc/42/7602.md?p=a) shall allocate [allowances](/usc/42/7651a.md?p=3) to an electric utility under this subsection only if all of the following requirements are met:
- (i) Such electric utility is paying for the qualified [energy conservation measures](/usc/42/8262.md?p=5) or qualified renewable energy directly or through purchase from another [person](/usc/42/7602.md?p=e).
- (ii) The emissions of sulfur dioxide avoided through the use of qualified [energy conservation measures](/usc/42/8262.md?p=5) or qualified renewable energy are quantified in accordance with regulations promulgated by the [Administrator](/usc/42/7602.md?p=a) under this subsection.
- (iii)
- (I) Such electric utility has adopted and is implementing a least cost energy conservation and electric power plan which evaluates a range of resources, including new power supplies, energy conservation, and renewable energy resources, in order to meet expected future demand at the lowest system cost.
- (II) The qualified [energy conservation measures](/usc/42/8262.md?p=5) or qualified renewable energy, or both, are consistent with that plan.
- (III) Electric utilities subject to the jurisdiction of a [State](/usc/42/7651a.md?p=14) regulatory authority must have such plan approved by such authority. For electric utilities not subject to the jurisdiction of a [State](/usc/42/7651a.md?p=14) regulatory authority such plan shall be approved by the entity with rate-making authority for such utility.
- (iv) In the case of qualified [energy conservation measures](/usc/42/8262.md?p=5) undertaken by a [State](/usc/42/7651a.md?p=14) regulated electric utility, the [Secretary](/usc/42/242q–4.md?p=2) of Energy certifies that the [State](/usc/42/7651a.md?p=14) regulatory authority with jurisdiction over the electric rates of such electric utility has established rates and charges which ensure that the net income of such electric utility after implementation of specific cost effective [energy conservation measures](/usc/42/8262.md?p=5) is at least as high as such net income would have been if the [energy conservation measures](/usc/42/8262.md?p=5) had not been implemented. Upon the date of any such certification by the [Secretary](/usc/42/242q–4.md?p=2) of Energy, all [allowances](/usc/42/7651a.md?p=3) which, but for this paragraph, would have been allocated under [subparagraph (A)](#f-2-A) before such date, shall be allocated to the electric utility. This clause is not a requirement for qualified renewable energy.
- (v) Such utility or any subsidiary of the utility’s holding company owns or operates at least one [affected unit](/usc/42/7651a.md?p=2).
- (C) **Period of applicability—** [Allowances](/usc/42/7651a.md?p=3) under this subsection shall be allocated only with respect to kilowatt hours of electric energy saved by qualified [energy conservation measures](/usc/42/8262.md?p=5) or generated by qualified renewable energy after January 1, 1992 and before the earlier of (i) December 31, 2000, or (ii) the date on which any electric utility steam generating [unit](/usc/42/7651a.md?p=15) owned or operated by the electric utility to which the [allowances](/usc/42/7651a.md?p=3) are allocated becomes subject to this subchapter (including those sources that elect to become affected by this subchapter, pursuant to [section 7651i of this title](/usc/42/7651i.md)).
- (D) **Determination of avoided emissions—**
- (i) **8 Application—** In order to receive [allowances](/usc/42/7651a.md?p=3) under this subsection, an electric utility shall make an application which—
- (I) designates the qualified [energy conservation measures](/usc/42/8262.md?p=5) implemented and the qualified renewable energy sources used for purposes of avoiding emissions,[^9]
- (II) calculates, in accordance with subparagraphs [(F)](#f-2-F) and [(G)](#f-2-G), the number of tons of emissions avoided by reason of the implementation of such measures or the use of such renewable energy sources; and
- (III) demonstrates that the requirements of [subparagraph (B)](#f-2-B) have been met.
Such application for [allowances](/usc/42/7651a.md?p=3) by a [State](/usc/42/7651a.md?p=14)-regulated electric utility shall require approval by the [State](/usc/42/7651a.md?p=14) regulatory authority with jurisdiction over such electric utility. The authority shall review the application for accuracy and compliance with this subsection and the rules under this subsection. Electric utilities whose retail rates are not subject to the jurisdiction of a [State](/usc/42/7651a.md?p=14) regulatory authority shall apply directly to the [Administrator](/usc/42/7602.md?p=a) for such approval.
- (E) **Avoided emissions from qualified energy conservation measures—** For the purposes of this subsection, the emission tonnage deemed avoided by reason of the implementation of qualified [energy conservation measures](/usc/42/8262.md?p=5) for any calendar year shall be a tonnage equal to the product of multiplying—
- (i) the kilowatt hours that would otherwise have been supplied by the utility during such year in the absence of such qualified [energy conservation measures](/usc/42/8262.md?p=5), by
- (ii) 0.004,
and dividing by 2,000.
- (F) **Avoided emissions from the use of qualified renewable energy—** The emissions tonnage deemed avoided by reason of the use of qualified renewable energy by an electric utility for any calendar year shall be a tonnage equal to the product of multiplying—
- (i) the actual kilowatt hours generated by, or purchased from, qualified renewable energy, by
- (ii) 0.004,
and dividing by 2,000.
- (G) **Prohibitions—**
- (i) No [allowances](/usc/42/7651a.md?p=3) shall be allocated under this subsection for the implementation of programs that are exclusively informational or educational in nature.
- (ii) No [allowances](/usc/42/7651a.md?p=3) shall be allocated for [energy conservation measures](/usc/42/8262.md?p=5) or renewable energy that were operational before January 1, 1992.
- (3) **Savings provision—** Nothing in this subsection precludes a [State](/usc/42/7651a.md?p=14) or [State](/usc/42/7651a.md?p=14) regulatory authority from providing additional incentives to utilities to encourage investment in demand-side resources.
- (4) **Regulations—** Not later than 18 months after November 15, 1990, and in conjunction with the regulations required to be promulgated under subsections [(b)](#b) and [(c)](#c), the [Administrator](/usc/42/7602.md?p=a) shall, in consultation with the [Secretary](/usc/42/242q–4.md?p=2) of Energy, promulgate regulations under this subsection. Such regulations shall list [energy conservation measures](/usc/42/8262.md?p=5) and renewable energy sources which may be treated as qualified [energy conservation measures](/usc/42/8262.md?p=5) and qualified renewable energy for purposes of this subsection. [Allowances](/usc/42/7651a.md?p=3) shall only be allocated if all requirements of this subsection and the rules promulgated to implement this subsection are complied with. The [Administrator](/usc/42/7602.md?p=a) shall review the determinations of each [State](/usc/42/7651a.md?p=14) regulatory authority under this subsection to encourage consistency from electric utility to electric utility and from [State](/usc/42/7651a.md?p=14) to [State](/usc/42/7651a.md?p=14) in accordance with the [Administrator](/usc/42/7602.md?p=a)’s rules. The [Administrator](/usc/42/7602.md?p=a) shall publish the findings of this review no less than annually.
- (g) **Conservation and Renewable Energy Reserve—** The [Administrator](/usc/42/7602.md?p=a) shall establish a Conservation and Renewable Energy [Reserve](/usc/42/7651a.md?p=13) under this subsection. Beginning on January 1, 1995, the [Administrator](/usc/42/7602.md?p=a) may allocate from the Conservation and Renewable Energy [Reserve](/usc/42/7651a.md?p=13) an amount equal to a total of 300,000 [allowances](/usc/42/7651a.md?p=3) for emissions of sulfur dioxide pursuant to [section 7651b of this title](/usc/42/7651b.md). In order to provide 300,000 [allowances](/usc/42/7651a.md?p=3) for such [reserve](/usc/42/7651a.md?p=13), in each year beginning in calendar year 2000 and until calendar year 2009, inclusive, the [Administrator](/usc/42/7602.md?p=a) shall reduce each [unit](/usc/42/7651a.md?p=15)’s basic Phase II [allowance](/usc/42/7651a.md?p=3) [allocation](/usc/42/2021b.md?p=2) on the basis of its pro rata share of 30,000 [allowances](/usc/42/7651a.md?p=3). If [allowances](/usc/42/7651a.md?p=3) remain in the [reserve](/usc/42/7651a.md?p=13) after January 2, 2010, the [Administrator](/usc/42/7602.md?p=a) shall allocate such [allowances](/usc/42/7651a.md?p=3) for [affected units](/usc/42/7651a.md?p=2) under [section 7651d of this title](/usc/42/7651d.md) on a pro rata basis. For purposes of this subsection, for any [unit](/usc/42/7651a.md?p=15) subject to the emissions limitation requirements of [section 7651d of this title](/usc/42/7651d.md), the term “pro rata basis” refers to the ratio which the reductions made in such [unit](/usc/42/7651a.md?p=15)’s [allowances](/usc/42/7651a.md?p=3) in order to establish the [reserve](/usc/42/7651a.md?p=13) under this subsection bears to the total of such reductions for all such [units](/usc/42/7651a.md?p=15).
- (h) **Alternative allowance allocation for units in certain utility systems with optional baseline—**
- (1) **Optional baseline for units in certain systems—** In the case of a [unit](/usc/42/7651a.md?p=15) subject to the emissions limitation requirements of this section which (as of November 15, 1990)—
- (A) has an emission rate below 1.0 lbs/mmBtu,
- (B) has decreased its sulfur dioxide emissions rate by 60 percent or greater since 1980, and
- (C) is part of a utility system which has a weighted average sulfur dioxide emissions rate for all fossil fueled-fired [units](/usc/42/7651a.md?p=15) below 1.0 lbs/mmBtu,
at the election of the [owner](/usc/42/13641.md?p=4) or operator of such [unit](/usc/42/7651a.md?p=15), the [unit](/usc/42/7651a.md?p=15)’s [baseline](/usc/42/7651a.md?p=4) may be calculated (i) as provided under [section 7651a(d)](/usc/42/7651a.md)[^1] of this title, or (ii) by utilizing the [unit](/usc/42/7651a.md?p=15)’s average annual fuel consumption at a 60 percent [capacity factor](/usc/42/7651a.md?p=5). Such election shall be made no later than March 1, 1991.
- (2) **Allowance allocation—** Whenever a [unit](/usc/42/7651a.md?p=15) referred to in [paragraph (1)](#h-1) elects to calculate its [baseline](/usc/42/7651a.md?p=4) as provided in clause (ii) of paragraph (1), the [Administrator](/usc/42/7602.md?p=a) shall allocate [allowances](/usc/42/7651a.md?p=3) for the [unit](/usc/42/7651a.md?p=15) pursuant to [section 7651b(a)(1) of this title](/usc/42/7651b.md?p=a-1), this section, and [section 7651d of this title](/usc/42/7651d.md) (as [basic Phase II allowance allocations](/usc/42/7651a.md?p=28)) in an amount equal to the [baseline](/usc/42/7651a.md?p=4) selected multiplied by the lower of the average annual emission rate for such [unit](/usc/42/7651a.md?p=15) in 1989, or 1.0 lbs./mmBtu. Such [allowance](/usc/42/7651a.md?p=3) [allocation](/usc/42/2021b.md?p=2) shall be in lieu of any [allocation](/usc/42/2021b.md?p=2) of [allowances](/usc/42/7651a.md?p=3) under this section and [section 7651d of this title](/usc/42/7651d.md).
## Footnotes
[^1]: So in original. Probably should be section “7651a(4)”.
[^2]: So in original. Probably should be “unit’s”.
[^3]: So in original. Probably should be “this”.
[^4]: So in original. Probably should be “paragraph (1)”.
[^5]: So in original. Probably should be “subsection”.
[^6]: So in original. Probably should be “majeure”.
[^7]: So in original. Probably should be “impracticability”.
[^8]: So in original. There is no cl. (ii).
[^9]: So in original. The comma probably should be a semicolon.
## Source credit
(July 14, 1955, ch. 360, title IV, § 404, as added Pub. L. 101–549, title IV, § 401, Nov. 15, 1990, 104 Stat. 2592.)