---
kind: "section"
citation: "42 U.S.C. § 7651d"
title: "42"
title_heading: "The Public Health and Welfare"
number: "7651d"
heading: "Phase II sulfur dioxide requirements"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/7651d"
units:
  - "Chapter 85 — Air Pollution Prevention and Control"
  - "Subchapter IV–A — Acid Deposition Control"
---

# §7651d. Phase II sulfur dioxide requirements

- (a) **Applicability—**
  - (1) After January 1, 2000, each existing [utility unit](/usc/42/7651a.md?p=17-A) as provided below is subject to the limitations or requirements of this section. Each [utility unit](/usc/42/7651a.md?p=17-A) subject to an annual sulfur dioxide tonnage [emission limitation](/usc/42/7602.md?p=k) under this section is an [affected unit](/usc/42/7651a.md?p=2) under this subchapter. Each source that includes one or more [affected units](/usc/42/7651a.md?p=2) is an [affected source](/usc/42/7651a.md?p=1). In the case of an [existing unit](/usc/42/7651a.md?p=8) that was not in operation during calendar year 1985, the emission rate for a calendar year after 1985, as determined by the [Administrator](/usc/42/7602.md?p=a), shall be used in lieu of the 1985 rate. The [owner](/usc/42/13641.md?p=4) or operator of any [unit](/usc/42/7651a.md?p=15) operated in [violation](/usc/42/2000e–16a.md?p=c) of this section shall be fully liable under this chapter for fulfilling the obligations specified in [section 7651j of this title](/usc/42/7651j.md).
  - (2) In addition to [basic Phase II allowance allocations](/usc/42/7651a.md?p=28), in each year beginning in calendar year 2000 and ending in calendar year 2009, inclusive, the [Administrator](/usc/42/7602.md?p=a) shall allocate up to 530,000 Phase II bonus [allowances](/usc/42/7651a.md?p=3) pursuant to subsections [(b)(2)](#b-2), [(c)(4)](#c-4), [(d)(3)(A)](#d-3-A) and (B), and [(h)(2)](#h-2) of this section and [section 7651e of this title](/usc/42/7651e.md). Not later than June 1, 1998, the [Administrator](/usc/42/7602.md?p=a) shall calculate, for each [unit](/usc/42/7651a.md?p=15) granted an extension pursuant to [section 7651h of this title](/usc/42/7651h.md) the difference between (A) the number of [allowances](/usc/42/7651a.md?p=3) allocated for the [unit](/usc/42/7651a.md?p=15) in calendar year 2000, and (B) the product of the [unit](/usc/42/7651a.md?p=15)’s [baseline](/usc/42/7651a.md?p=4) 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](/usc/42/7602.md?p=a) shall deduct from 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) its pro rata share of 10 percent of the sum calculated pursuant to the preceding sentence.
  - (3) In addition to [basic Phase II allowance allocations](/usc/42/7651a.md?p=28) and [Phase II bonus allowance allocations](/usc/42/7651a.md?p=29), beginning January 1, 2000, the [Administrator](/usc/42/7602.md?p=a) shall allocate for each [unit](/usc/42/7651a.md?p=15) listed on Table A in [section 7651c of this title](/usc/42/7651c.md) (other than [units](/usc/42/7651a.md?p=15) at Kyger Creek, Clifty Creek, and Joppa Steam) and located in the [States](/usc/42/7651a.md?p=14) of Illinois, Indiana, Ohio, Georgia, Alabama, Missouri, Pennsylvania, West Virginia, Kentucky, or Tennessee [allowances](/usc/42/7651a.md?p=3) in an amount equal to 50,000 multiplied by the [unit](/usc/42/7651a.md?p=15)’s pro rata share of the total number of basic [allowances](/usc/42/7651a.md?p=3) allocated for all [units](/usc/42/7651a.md?p=15) listed on Table A (other than [units](/usc/42/7651a.md?p=15) at Kyger Creek, Clifty Creek, and Joppa Steam). [Allowances](/usc/42/7651a.md?p=3) allocated pursuant to this paragraph shall not be subject to the 8,900,000 ton limitation in [section 7651b(a) of this title](/usc/42/7651b.md?p=a).
- (b) **Units equal to, or above, 75 MWe and 1.20 lbs/mmBtu—**
  - (1) Except as otherwise provided in [paragraph (3)](#b-3), after January 1, 2000, it shall be unlawful for any existing [utility unit](/usc/42/7651a.md?p=17-A) that serves a [generator](/usc/42/7651a.md?p=9) with nameplate capacity equal to, or greater, than 75 MWe and an [actual 1985 emission rate](/usc/42/7651a.md?p=16) equal to or greater than 1.20 lbs/mmBtu to exceed an annual sulfur dioxide tonnage [emission limitation](/usc/42/7602.md?p=k) equal to the product of the [unit](/usc/42/7651a.md?p=15)’s [baseline](/usc/42/7651a.md?p=4) multiplied by an emission rate equal to 1.20 lbs/mmBtu, divided by 2,000, unless 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.
  - (2) In addition to [allowances](/usc/42/7651a.md?p=3) allocated pursuant to [paragraph (1)](#b-1) and [section 7651b(a)(1) of this title](/usc/42/7651b.md?p=a-1) as [basic Phase II allowance allocations](/usc/42/7651a.md?p=28), beginning January 1, 2000, and for each calendar year thereafter until and including 2009, the [Administrator](/usc/42/7602.md?p=a) shall allocate annually for each [unit](/usc/42/7651a.md?p=15) subject to the emissions limitation requirements of [paragraph (1)](#b-1) with an actual 1985 emissions rate greater than 1.20 lbs/mmBtu and less than 2.50 lbs/mmBtu and a [baseline](/usc/42/7651a.md?p=4) [capacity factor](/usc/42/7651a.md?p=5) of less than 60 percent, [allowances](/usc/42/7651a.md?p=3) from the [reserve](/usc/42/7651a.md?p=13) created pursuant to [subsection (a)(2)](#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](/usc/42/7651a.md?p=15)’s [baseline](/usc/42/7651a.md?p=4) and the [unit](/usc/42/7651a.md?p=15)’s fuel consumption at a 60 percent [capacity factor](/usc/42/7651a.md?p=5).
  - (3) After January 1, 2000, it shall be unlawful for any existing [utility unit](/usc/42/7651a.md?p=17-A) 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](/usc/42/7651a.md?p=14) in which, as of July 1, 1989, no county or portion of a county was designated nonattainment under [section 7407 of this title](/usc/42/7407.md) for any pollutant subject to the requirements of [section 7409 of this title](/usc/42/7409.md) to exceed an annual sulfur dioxide tonnage limitation equal to the product of the [unit](/usc/42/7651a.md?p=15)’s [baseline](/usc/42/7651a.md?p=4) multiplied by the lesser of the [unit](/usc/42/7651a.md?p=15)’s actual 1985 emissions rate or its [allowable 1985 emissions rate](/usc/42/7651a.md?p=18), divided by 2,000, unless 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.
  - (4) After January 1, 2000, the [Administrator](/usc/42/7602.md?p=a) shall allocate annually for each [unit](/usc/42/7651a.md?p=15), subject to the emissions limitation requirements of [paragraph (1)](#b-1), which is located in a [State](/usc/42/7651a.md?p=14) 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](/usc/42/7651a.md?p=15) subsequently converted to coal between January 1, 1980 and December 31, 1985, [allowances](/usc/42/7651a.md?p=3) equal to the difference between (A) the product of the [unit](/usc/42/7651a.md?p=15)’s annual fuel consumption, on a Btu basis, at a 65 percent [capacity factor](/usc/42/7651a.md?p=5) 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](/usc/42/7651a.md?p=3) allocated for the [unit](/usc/42/7651a.md?p=15) pursuant to [paragraph (1)](#b-1): Provided, That the number of [allowances](/usc/42/7651a.md?p=3) 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](/usc/42/7602.md?p=a) shall reduce, pro rata, the annual [allowances](/usc/42/7651a.md?p=3) allocated for each [unit](/usc/42/7651a.md?p=15) under this paragraph.
- (c) **Coal or oil-fired units below 75 MWe and above 1.20 lbs/mmBtu—**
  - (1) Except as otherwise provided in [paragraph (3)](#c-3), after January 1, 2000, it shall be unlawful for a coal or oil-fired existing [utility unit](/usc/42/7651a.md?p=17-A) that serves a [generator](/usc/42/7651a.md?p=9) with nameplate capacity of less than 75 MWe and an [actual 1985 emission rate](/usc/42/7651a.md?p=16) equal to, or greater than, 1.20 lbs/mmBtu and which is a [unit](/usc/42/7651a.md?p=15) 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](/usc/42/7651a.md?p=15)’s [baseline](/usc/42/7651a.md?p=4) multiplied by an emission rate equal to 1.20 lbs/mmBtu, divided by 2,000, unless 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.
  - (2) After January 1, 2000, it shall be unlawful for a coal or oil-fired existing [utility unit](/usc/42/7651a.md?p=17-A) that serves a [generator](/usc/42/7651a.md?p=9) with nameplate capacity of less than 75 MWe and an [actual 1985 emission rate](/usc/42/7651a.md?p=16) equal to, or greater than, 1.20 lbs/mmBtu (excluding [units](/usc/42/7651a.md?p=15) subject to [section 7411 of this title](/usc/42/7411.md) 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](/usc/42/7651a.md?p=15) 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](/usc/42/7651a.md?p=15)’s [baseline](/usc/42/7651a.md?p=4) multiplied by the lesser of its actual 1985 emissions rate or its [allowable 1985 emissions rate](/usc/42/7651a.md?p=18), divided by 2,000, unless 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.
  - (3) After January 1, 2000, it shall be unlawful for any existing [utility unit](/usc/42/7651a.md?p=17-A) 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](/usc/42/7275.md?p=5) as of November 15, 1990, to exceed an annual sulfur dioxide emissions tonnage limitation equal to the product of its [baseline](/usc/42/7651a.md?p=4) multiplied by the lesser of its actual or allowable 1985 emission rate, divided by 2,000, unless the [owner](/usc/42/13641.md?p=4) or operator holds [allowances](/usc/42/7651a.md?p=3) to emit not less than the [units](/usc/42/7651a.md?p=15)[^1] total annual emissions. After January 1, 2010, it shall be unlawful for each [unit](/usc/42/7651a.md?p=15) subject to the emissions limitation requirements of this paragraph to exceed an annual emissions tonnage limitation equal to the product of its [baseline](/usc/42/7651a.md?p=4) multiplied by an emissions rate of 1.20 lbs/mmBtu, divided by 2,000, unless the [owner](/usc/42/13641.md?p=4) or operator 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.
  - (4) In addition to [allowances](/usc/42/7651a.md?p=3) allocated pursuant to [paragraph (1)](#c-1) and [section 7651b(a)(1) of this title](/usc/42/7651b.md?p=a-1) as [basic Phase II allowance allocations](/usc/42/7651a.md?p=28), beginning January 1, 2000, and for each calendar year thereafter until and including 2009, inclusive, the [Administrator](/usc/42/7602.md?p=a) shall allocate annually for each [unit](/usc/42/7651a.md?p=15) subject to the emissions limitation requirements of [paragraph (1)](#c-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](/usc/42/7651a.md?p=4) [capacity factor](/usc/42/7651a.md?p=5) of less than 60 percent, [allowances](/usc/42/7651a.md?p=3) from the [reserve](/usc/42/7651a.md?p=13) created pursuant to [subsection (a)(2)](#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](/usc/42/7651a.md?p=15)’s [baseline](/usc/42/7651a.md?p=4) and the [unit](/usc/42/7651a.md?p=15)’s fuel consumption at a 60 percent [capacity factor](/usc/42/7651a.md?p=5).
  - (5) After January 1, 2000, it shall be unlawful for any existing [utility unit](/usc/42/7651a.md?p=17-A) 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](/usc/42/7651a.md?p=15) of less than 75 MWe, and (C) has large [units](/usc/42/7651a.md?p=15) (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](/usc/42/8262.md?p=1) on January 10, 1986) to exceed an annual sulfur dioxide emissions tonnage limitation equal to the product of its [baseline](/usc/42/7651a.md?p=4) multiplied by an emissions rate of 2.5 lbs/mmBtu, divided by 2,000, unless the [owner](/usc/42/13641.md?p=4) or operator 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. After January 1, 2010, it shall be unlawful for each [unit](/usc/42/7651a.md?p=15) subject to the emissions limitation requirements of this paragraph to exceed an annual emissions tonnage limitation equal to the product of its [baseline](/usc/42/7651a.md?p=4) multiplied by an emissions rate of 1.20 lbs/mmBtu, divided by 2,000, unless the [owner](/usc/42/13641.md?p=4) or operator holds for use [allowances](/usc/42/7651a.md?p=3) to emit not less than the [unit](/usc/42/7651a.md?p=15)’s total annual emissions.
- (d) **Coal-fired units below 1.20 lbs/mmBtu—**
  - (1) After January 1, 2000, it shall be unlawful for any existing coal-fired [utility unit](/usc/42/7651a.md?p=17-A) 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](/usc/42/7602.md?p=k) equal to the product of the [unit](/usc/42/7651a.md?p=15)’s [baseline](/usc/42/7651a.md?p=4) multiplied by (A) the lesser of 0.60 lbs/mmBtu or the [unit](/usc/42/7651a.md?p=15)’s [allowable 1985 emissions rate](/usc/42/7651a.md?p=18), and (B) a numerical factor of 120 percent, divided by 2,000, unless 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.
  - (2) After January 1, 2000, it shall be unlawful for any existing coal-fired [utility unit](/usc/42/7651a.md?p=17-A) 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](/usc/42/7651a.md?p=15)’s [baseline](/usc/42/7651a.md?p=4) multiplied by (A) the lesser of its actual 1985 emissions rate or its [allowable 1985 emissions rate](/usc/42/7651a.md?p=18), and (B) a numerical factor of 120 percent, divided by 2,000, unless 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.
  - (3)
    - (A) In addition to [allowances](/usc/42/7651a.md?p=3) allocated pursuant to [paragraph (1)](#d-1) and [section 7651b(a)(1) of this title](/usc/42/7651b.md?p=a-1) as [basic Phase II allowance allocations](/usc/42/7651a.md?p=28), at the election of the [designated representative](/usc/42/7651a.md?p=26) of the operating company, beginning January 1, 2000, and for each calendar year thereafter until and including 2009, the [Administrator](/usc/42/7602.md?p=a) shall allocate annually for each [unit](/usc/42/7651a.md?p=15) subject to the emissions limitation requirements of [paragraph (1)](#d-1) [allowances](/usc/42/7651a.md?p=3) from the [reserve](/usc/42/7651a.md?p=13) created pursuant to [subsection (a)(2)](#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](/usc/42/7651a.md?p=15)’s [allowable 1985 emissions rate](/usc/42/7651a.md?p=18) multiplied by the [unit](/usc/42/7651a.md?p=15)’s [baseline](/usc/42/7651a.md?p=4) adjusted to reflect operation at a 60 percent [capacity factor](/usc/42/7651a.md?p=5), divided by 2,000, exceeds (ii) the number of [allowances](/usc/42/7651a.md?p=3) allocated for the [unit](/usc/42/7651a.md?p=15) pursuant to [paragraph (1)](#d-1) and [section 7651b(a)(1) of this title](/usc/42/7651b.md?p=a-1) as [basic Phase II allowance allocations](/usc/42/7651a.md?p=28).
    - (B) In addition to [allowances](/usc/42/7651a.md?p=3) allocated pursuant to [paragraph (2)](#d-2) and [section 7651b(a)(1) of this title](/usc/42/7651b.md?p=a-1) as [basic Phase II allowance allocations](/usc/42/7651a.md?p=28), at the election of the [designated representative](/usc/42/7651a.md?p=26) of the operating company, beginning January 1, 2000, and for each calendar year thereafter until and including 2009, the [Administrator](/usc/42/7602.md?p=a) shall allocate annually for each [unit](/usc/42/7651a.md?p=15) subject to the emissions limitation requirements of [paragraph (2)](#d-2) [allowances](/usc/42/7651a.md?p=3) from the [reserve](/usc/42/7651a.md?p=13) created pursuant to [subsection (a)(2)](#a-2) in an amount equal to the amount by which (i) the product of the lesser of the [unit](/usc/42/7651a.md?p=15)’s actual 1985 emissions rate or its [allowable 1985 emissions rate](/usc/42/7651a.md?p=18) multiplied by the [unit](/usc/42/7651a.md?p=15)’s [baseline](/usc/42/7651a.md?p=4) adjusted to reflect operation at a 60 percent [capacity factor](/usc/42/7651a.md?p=5), divided by 2,000, exceeds (ii) the number of [allowances](/usc/42/7651a.md?p=3) allocated for the [unit](/usc/42/7651a.md?p=15) pursuant to [paragraph (2)](#d-2) and [section 7651b(a)(1) of this title](/usc/42/7651b.md?p=a-1) as [basic Phase II allowance allocations](/usc/42/7651a.md?p=28).
    - (C) An operating company with [units](/usc/42/7651a.md?p=15) subject to the emissions limitation requirements of this subsection may elect the [allocation](/usc/42/2021b.md?p=2) of [allowances](/usc/42/7651a.md?p=3) as provided under subparagraphs [(A)](#d-3-A) and [(B)](#d-3-B). Such election shall apply to the annual [allowance](/usc/42/7651a.md?p=3) [allocation](/usc/42/2021b.md?p=2) for each and every [unit](/usc/42/7651a.md?p=15) in the operating company subject to the emissions limitation requirements of this subsection. The [Administrator](/usc/42/7602.md?p=a) shall allocate [allowances](/usc/42/7651a.md?p=3) pursuant to subparagraphs [(A)](#d-3-A) and [(B)](#d-3-B) only in accordance with this subparagraph.
  - (4) Notwithstanding any other provision of this section, at the election of the [owner](/usc/42/13641.md?p=4) or operator, after January 1, 2000, the [Administrator](/usc/42/7602.md?p=a) shall allocate in lieu of [allocation](/usc/42/2021b.md?p=2), pursuant to paragraph [(1)](#d-1), [(2)](#d-2), [(3)](#d-3), [(5)](#d-5), or (6),[^2] [allowances](/usc/42/7651a.md?p=3) for a [unit](/usc/42/7651a.md?p=15) subject to the emissions limitation requirements of this subsection which [commenced commercial operation](/usc/42/7651a.md?p=22) on or after January 1, 1981 and before December 31, 1985, which was subject to, and in compliance with, [section 7411 of this title](/usc/42/7411.md) in an amount equal to the [unit](/usc/42/7651a.md?p=15)’s annual fuel consumption, on a Btu basis, at a 65 percent [capacity factor](/usc/42/7651a.md?p=5) multiplied by the [unit](/usc/42/7651a.md?p=15)’s [allowable 1985 emissions rate](/usc/42/7651a.md?p=18), divided by 2,000.
  - (5) For the purposes of this section, in the case of an oil- and gas-fired [unit](/usc/42/7651a.md?p=15) 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](/usc/42/7602.md?p=a) shall allocate for the [unit](/usc/42/7651a.md?p=15) [allowances](/usc/42/7651a.md?p=3) in an amount equal to the [unit](/usc/42/7651a.md?p=15)’s [baseline](/usc/42/7651a.md?p=4) multiplied by 1.20 lbs/mmBtu, divided by 2,000.
- (e) **Oil and gas-fired units equal to or greater than 0.60 lbs/mmBtu and less than 1.20 lbs/mmBtu—** After January 1, 2000, it shall be unlawful for any existing oil and gas-fired [utility unit](/usc/42/7651a.md?p=17-A) 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](/usc/42/7651a.md?p=15)’s [baseline](/usc/42/7651a.md?p=4) multiplied by (A) the lesser of the [unit](/usc/42/7651a.md?p=15)’s [allowable 1985 emissions rate](/usc/42/7651a.md?p=18) or its actual 1985 emissions rate and (B) a numerical factor of 120 percent divided by 2,000, unless 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.
- (f) **Oil and gas-fired units less than 0.60 lbs/mmBtu—**
  - (1) After January 1, 2000, it shall be unlawful for any oil and gas-fired existing [utility unit](/usc/42/7651a.md?p=17-A) 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](/usc/42/7651a.md?p=15)’s [baseline](/usc/42/7651a.md?p=4) multiplied by (A) the lesser of 0.60 lbs/mmBtu or the [unit](/usc/42/7651a.md?p=15)’s allowable 1985 emissions, and (B) a numerical factor of 120 percent, divided by 2,000, unless 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.
  - (2) In addition to [allowances](/usc/42/7651a.md?p=3) allocated pursuant to [paragraph (1)](#f-1) as [basic Phase II allowance allocations](/usc/42/7651a.md?p=28) and [section 7651b(a)(1) of this title](/usc/42/7651b.md?p=a-1), beginning January 1, 2000, the [Administrator](/usc/42/7602.md?p=a) shall,[^3] in the case of any [unit](/usc/42/7651a.md?p=15) 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](/usc/42/7651a.md?p=15) owned by a [State](/usc/42/7651a.md?p=14) authority, the output of which [unit](/usc/42/7651a.md?p=15) is furnished within that same area consisting of a city and 1 contiguous county, the [Administrator](/usc/42/7602.md?p=a) shall allocate for each [unit](/usc/42/7651a.md?p=15) in the utility its pro rata share of 7,000 [allowances](/usc/42/7651a.md?p=3) and for each [unit](/usc/42/7651a.md?p=15) in the [State](/usc/42/7651a.md?p=14) authority its pro rata share of 2,000 [allowances](/usc/42/7651a.md?p=3).
- (g) **Units that commence operation between 1986 and December 31, 1995—**
  - (1) After January 1, 2000, it shall be unlawful for any [utility unit](/usc/42/7651a.md?p=17-A) that has [commenced commercial operation](/usc/42/7651a.md?p=22) on or after January 1, 1986, but not later than September 30, 1990 to exceed an annual tonnage [emission limitation](/usc/42/7602.md?p=k) equal to the product of the [unit](/usc/42/7651a.md?p=15)’s annual fuel consumption, on a Btu basis, at a 65 percent [capacity factor](/usc/42/7651a.md?p=5) multiplied by the [unit](/usc/42/7651a.md?p=15)’s allowable 1985 sulfur dioxide emission rate (converted, if necessary, to pounds per mmBtu), divided by 2,000 unless 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.
  - (2) After January 1, 2000, the [Administrator](/usc/42/7602.md?p=a) shall allocate [allowances](/usc/42/7651a.md?p=3) pursuant to [section 7651b of this title](/usc/42/7651b.md) to each [unit](/usc/42/7651a.md?p=15) which is listed in table B of this paragraph in an annual amount equal to the amount specified in table B.

    | TABLE B |  |
    | --- | --- |
    | [Unit](/usc/42/7651a.md?p=15) | [Allowances](/usc/42/7651a.md?p=3) |
    | 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](/usc/42/7651a.md?p=15) subject to this paragraph, the [Administrator](/usc/42/7602.md?p=a) shall not allocate [allowances](/usc/42/7651a.md?p=3) pursuant to any other paragraph of this subsection, Provided[^4] that the [owner](/usc/42/13641.md?p=4) or operator of a [unit](/usc/42/7651a.md?p=15) listed on Table B may elect an [allocation](/usc/42/2021b.md?p=2) of [allowances](/usc/42/7651a.md?p=3) under another paragraph of this subsection in lieu of an [allocation](/usc/42/2021b.md?p=2) under this paragraph.

  - (3) Beginning January 1, 2000, the [Administrator](/usc/42/7602.md?p=a) shall allocate to the [owner](/usc/42/13641.md?p=4) or operator of any [utility unit](/usc/42/7651a.md?p=17-A) that commences commercial operation, or has [commenced commercial operation](/usc/42/7651a.md?p=22), on or after October 1, 1990, but not later than December 31, 1992 [allowances](/usc/42/7651a.md?p=3) in an amount equal to the product of the [unit](/usc/42/7651a.md?p=15)’s annual fuel consumption, on a Btu basis, at a 65 percent [capacity factor](/usc/42/7651a.md?p=5) multiplied by the lesser of 0.30 lbs/mmBtu or the [unit](/usc/42/7651a.md?p=15)’s allowable sulfur dioxide emission rate (converted, if necessary, to pounds per mmBtu), divided by 2,000.
  - (4) Beginning January 1, 2000, the [Administrator](/usc/42/7602.md?p=a) shall allocate to the [owner](/usc/42/13641.md?p=4) or operator of any [utility unit](/usc/42/7651a.md?p=17-A) that has [commenced](/usc/42/7651a.md?p=21) [construction](/usc/42/7651a.md?p=23) before December 31, 1990 and that commences commercial operation between January 1, 1993 and December 31, 1995, [allowances](/usc/42/7651a.md?p=3) in an amount equal to the product of the [unit](/usc/42/7651a.md?p=15)’s annual fuel consumption, on a Btu basis, at a 65 percent [capacity factor](/usc/42/7651a.md?p=5) multiplied by the lesser of 0.30 lbs/mmBtu or the [unit](/usc/42/7651a.md?p=15)’s allowable sulfur dioxide emission rate (converted, if necessary, to pounds per mmBtu), divided by 2,000.
  - (5) After January 1, 2000, it shall be unlawful for any existing [utility unit](/usc/42/7651a.md?p=17-A) 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)](/usc/42/301.md)[^5] of the Powerplant and Industrial Fuel Use Act of 1978 ([42 U.S.C. 8301](/usc/42/8301.md) et seq,[^6] repealed 1987) to exceed an annual sulfur dioxide tonnage emissions limitation equal to the product of the [unit](/usc/42/7651a.md?p=15)’s annual fuel consumption, on a Btu basis, at a 65 percent [capacity factor](/usc/42/7651a.md?p=5) multiplied by the lesser of 1.20 lbs/mmBtu or the [unit](/usc/42/7651a.md?p=15)’s allowable 1987 sulfur dioxide emissions rate, divided by 2,000, unless the [owner](/usc/42/13641.md?p=4) or operator of such [unit](/usc/42/7651a.md?p=15) has obtained [allowances](/usc/42/7651a.md?p=3) equal to its actual emissions.
  - (6)
    - (A) [^7] Unless the [Administrator](/usc/42/7602.md?p=a) has approved a designation of such facility under [section 7651i of this title](/usc/42/7651i.md), 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)](/usc/16/796.md?p=17-C) or [796(18)(B)](/usc/16/796.md?p=18-B) of title 16) or to a “new independent power production facility” as defined in [section 7651o](/usc/42/7651o.md) of this title except[^8] that [clause (iii)](#g-6-A-iii)[^9] of such definition in [section 7651o](/usc/42/7651o.md) of this title shall not apply for purposes of this paragraph if, as of November 15, 1990,
      - (i) an applicable power sales agreement has been executed;
      - (ii) the facility is the subject of a [State](/usc/42/7651a.md?p=14) 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;
      - (iii) 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
      - (iv) the facility has been selected as a winning bidder in a utility competitive bid solicitation.
- (h) **Oil and gas-fired units less than 10 percent oil consumed—**
  - (1) After January 1, 2000, it shall be unlawful for any oil- and gas-fired [utility unit](/usc/42/7651a.md?p=17-A) 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](/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 actual 1985 emissions rate divided by 2,000 unless 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.
  - (2) In addition to [allowances](/usc/42/7651a.md?p=3) allocated pursuant to [paragraph (1)](#h-1) and [section 7651b(a)(1) of this title](/usc/42/7651b.md?p=a-1) as [basic Phase II allowance allocations](/usc/42/7651a.md?p=28), beginning January 1, 2000, and for each calendar year thereafter until and including 2009, the [Administrator](/usc/42/7602.md?p=a) shall allocate annually for each [unit](/usc/42/7651a.md?p=15) subject to the emissions limitation requirements of [paragraph (1)](#h-1) [allowances](/usc/42/7651a.md?p=3) from the [reserve](/usc/42/7651a.md?p=13) created pursuant to [subsection (a)(2)](#a-2) of this section in an amount equal to the [unit](/usc/42/7651a.md?p=15)’s [baseline](/usc/42/7651a.md?p=4) multiplied by 0.050 lbs/mmBtu, divided by 2,000.
  - (3) In addition to [allowances](/usc/42/7651a.md?p=3) allocated pursuant to [paragraph (1)](#h-1) and [section 7651b(a)(1) of this title](/usc/42/7651b.md?p=a-1), beginning January 1, 2010, the [Administrator](/usc/42/7602.md?p=a) shall allocate annually for each [unit](/usc/42/7651a.md?p=15) subject to the emissions limitation requirements of [paragraph (1)](#h-1) [allowances](/usc/42/7651a.md?p=3) in an amount equal to the [unit](/usc/42/7651a.md?p=15)’s [baseline](/usc/42/7651a.md?p=4) multiplied by 0.050 lbs/mmBtu, divided by 2,000.
- (i) **Units in high growth States—**
  - (1) In addition to [allowances](/usc/42/7651a.md?p=3) allocated pursuant to this section and [section 7651b(a)(1) of this title](/usc/42/7651b.md?p=a-1) as [basic Phase II allowance allocations](/usc/42/7651a.md?p=28), beginning January 1, 2000, the [Administrator](/usc/42/7602.md?p=a) shall allocate annually [allowances](/usc/42/7651a.md?p=3) for each [unit](/usc/42/7651a.md?p=15), subject to an emissions limitation requirement under this section, and located in a [State](/usc/42/7651a.md?p=14) that—
    - (A) has experienced a growth in population in excess of 25 percent between 1980 and 1988 according to [State](/usc/42/7651a.md?p=14) Population and Household Estimates, With Age, Sex, and Components of Change: 1981–1988 allocated by the United States Department of [Commerce](/usc/42/7550.md?p=6), and
    - (B) 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](/usc/42/7651a.md?p=3) that would be allocated for the [unit](/usc/42/7651a.md?p=15) pursuant to the emissions limitation requirements of this section applicable to the [unit](/usc/42/7651a.md?p=15) adjusted to reflect the [unit](/usc/42/7651a.md?p=15)’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](/usc/42/13641.md?p=4) or operator and (B) the number of [allowances](/usc/42/7651a.md?p=3) allocated for the [unit](/usc/42/7651a.md?p=15) pursuant to the emissions limitation requirements of this section: Provided, That the number of [allowances](/usc/42/7651a.md?p=3) allocated pursuant to this subsection shall not exceed an annual total of 40,000. If necessary to meeting the 40,000 [allowance](/usc/42/7651a.md?p=3) restriction imposed under this subsection the [Administrator](/usc/42/7602.md?p=a) shall reduce, pro rata, the additional annual [allowances](/usc/42/7651a.md?p=3) allocated to each [unit](/usc/42/7651a.md?p=15) under this subsection.

  - (2) Beginning January 1, 2000, in addition to [allowances](/usc/42/7651a.md?p=3) allocated pursuant to this section and [section 7651b(a)(1) of this title](/usc/42/7651b.md?p=a-1) as [basic Phase II allowance allocations](/usc/42/7651a.md?p=28), the [Administrator](/usc/42/7602.md?p=a) shall allocate annually for each [unit](/usc/42/7651a.md?p=15) subject to the emissions limitation requirements of subsection [(b)(1)](#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](/usc/42/7651a.md?p=21) 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](/usc/42/7651a.md?p=3) in an amount equal to the difference between (i) the number of [allowances](/usc/42/7651a.md?p=3) that would be allocated for the [unit](/usc/42/7651a.md?p=15) pursuant to the emissions limitation requirements of [subsection (b)(1)](#b-1) adjusted to reflect the [unit](/usc/42/7651a.md?p=15)’s annual average fuel consumption on a Btu basis for any three consecutive years between 1980 and 1989 (inclusive) as elected by the [owner](/usc/42/13641.md?p=4) or operator and (ii) the number of [allowances](/usc/42/7651a.md?p=3) allocated for the [unit](/usc/42/7651a.md?p=15) pursuant to the emissions limitation requirements of [subsection (b)(1)](#b-1) of this section: Provided, That the number of [allowances](/usc/42/7651a.md?p=3) allocated pursuant to this paragraph shall not exceed an annual total of 5,000. If necessary to meeting the 5,000-[allowance](/usc/42/7651a.md?p=3) restriction imposed in the last clause of the preceding sentence the [Administrator](/usc/42/7602.md?p=a) shall reduce, pro rata, the additional [allowances](/usc/42/7651a.md?p=3) allocated to each [unit](/usc/42/7651a.md?p=15) pursuant to this paragraph.
- (j) **Certain municipally owned power plants—** Beginning January 1, 2000, in addition to [allowances](/usc/42/7651a.md?p=3) allocated pursuant to this section and [section 7651b(a)(1) of this title](/usc/42/7651b.md?p=a-1) as [basic Phase II allowance allocations](/usc/42/7651a.md?p=28), the [Administrator](/usc/42/7602.md?p=a) shall allocate annually for each existing municipally owned oil and gas-fired [utility unit](/usc/42/7651a.md?p=17-A) 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](/usc/42/7651a.md?p=3) in an amount equal to the product of the [unit](/usc/42/7651a.md?p=15)’s annual fuel consumption on a Btu basis at a 60 percent [capacity factor](/usc/42/7651a.md?p=5) multiplied by the lesser of its allowable 1985 emission rate or its [actual 1985 emission rate](/usc/42/7651a.md?p=16), divided by 2,000.

## Footnotes

[^1]: So in original. Probably should be “unit’s”.
[^2]: So in original. This subsection does not contain a paragraph (6).
[^3]: So in original. The words “the Administrator shall,” probably should not appear.
[^4]: So in original. Probably should not be capitalized.
[^5]: See References in Text note below.
[^6]: So in original. Probably should be “seq.,”.
[^7]: So in original. No subpar. (B) has been enacted.
[^8]: So in original. Probably should be preceded by a comma.
[^9]: So in original. Probably means clause “(C)”.

## 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.)

## Notes

### Editorial Notes

### References in Text

Section 301(b) of the Powerplant and Industrial Fuel Use Act of 1978, referred to in subsec. (g)(5), is section 301(b) of Pub. L. 95–620, which is classified to section 8341(b) of this title. A prior section 301(b) of Pub. L. 95–620, title III, Nov. 9, 1978, 92 Stat. 3305, which was formerly classified to section 8341(b) of this title, was repealed by Pub. L. 97–35, title X, § 1021(a), Aug. 13, 1981, 95 Stat. 614.