468 
(7) BASIC PHASE II ALLOWANCE ALLOCATION.—The term ‘‘basic 
Phase II allowance allocation’’ means— 
(A) for calendar years 2000 to 2009, an allocation of allowances 
made by the Administrator pursuant to section 233103 of this 
title and paragraph (1), (3), or (4) of subsection (b), paragraph 
(1), (2), (3), or (5) of subsection (c), paragraph (1), (2), (4), or 
(5) of subsection (d), subsection (e) or (f), paragraph (1), (2), (3), 
(4), or (5) of subsection (g), or subsection (h)(1), (i), or (j) of sec-
tion 233105 of this title; and 
(B) for each calendar year beginning in 2010, an allocation of 
allowances made by the Administrator pursuant to section 233103 
of this title and paragraph (1), (3), or (4) of subsection (b), para-
graph (1), (2), (3), or (5) of subsection (c), paragraph (1), (2), 
(4), or (5) of subsection (d), subsection (e) or (f), paragraph (1), 
(2), (3), (4), or (5) of subsection (g), paragraph (1) or (2)(B) of 
subsection (h), or subsection (i) or (j) of section 233105 of this 
title. 
(8) CAPACITY FACTOR.—The term ‘‘capacity factor’’ means the ratio 
of the actual electric output from a unit to the potential electric output 
from that unit. 
(9) COMMENCE.—The term ‘‘commence’’, as applied to construction 
of a new electric utility unit by an owner or operator, means to— 
(A) undertake a continuous program of construction; or 
(B) enter into a contractual obligation to undertake and com-
plete, within a reasonable time, a continuous program of construc-
tion. 
(10) COMMENCE COMMERCIAL OPERATION.—The term ‘‘commence 
commercial operation’’ means to begin to generate electricity for sale. 
(11) COMPLIANCE PLAN.—The term ‘‘compliance plan’’ means, for 
purposes of the requirements of this subdivision— 
(A) a statement that a source will comply with all applicable re-
quirements under this subdivision; or 
(B) where applicable, a schedule and description of the method 
or methods for compliance and certification by an owner or oper-
ator that a source is in compliance with the requirements of this 
subdivision. 
(12) CONSTRUCTION.—The term ‘‘construction’’ means fabrication, 
erection, or installation of an affected unit. 
(13) CONTINUOUS EMISSION MONITORING SYSTEM.—The term ‘‘con-
tinuous emission monitoring system’’ means the equipment, as required 
by section 233111 of this title, used to sample, analyze, measure, and 
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provide on a continuous basis a permanent record of emissions and 
flow (expressed in pounds per million British thermal units, pounds per 
hour, or such other form as the Administrator may prescribe by regula-
tions under section 233111 of this title). 
(14) DESIGNATED REPRESENTATIVE.—The term ‘‘designated rep-
resentative’’ means a responsible person or official authorized by the 
owner or operator of a unit to represent the owner or operator in mat-
ters pertaining to the holding, transfer, or disposition of allowances al-
located to a unit and the submission of and compliance with permits, 
permit applications, and compliance plans for the unit. 
(15) EXISTING UNIT.— 
(A) IN GENERAL.—The term ‘‘existing unit’’ means a unit (in-
cluding a unit subject to section 211111 of this title) that com-
menced commercial operation before November 15, 1990. Any unit 
that commenced commercial operation before November 15, 1990, 
that is modified, reconstructed, or repowered after November 15, 
1990, shall continue to be an existing unit for the purposes of this 
subdivision. 
(B) EXCLUSIONS.—The term ‘‘existing unit’’ does not include 
a simple combustion turbine or a unit that serves a generator with 
a nameplate capacity of 25 megawatts electric or less. 
(16) EXISTING
UTILITY
UNIT.—The term ‘‘existing utility unit’’ 
means an existing unit that is a utility unit. 
(17) GENERATOR.—The term ‘‘generator’’ means a device that pro-
duces electricity and that is reported as a generating unit pursuant to 
Department of Energy Form EIA–860. 
(18) INDUSTRIAL SOURCE.—The term ‘‘industrial source’’ means a 
unit that does not serve a generator that produces electricity, a non-
utility unit, or a process source (as defined in section 233109 of this 
title). 
(19) LIFE-OF-THE-UNIT, FIRM
POWER
CONTRACTUAL
ARRANGE-
MENT.—The term ‘‘life-of-the-unit, firm power contractual arrange-
ment’’ means a unit participation power sales agreement under which 
a utility or industrial customer reserves, or is entitled to receive, a 
specified amount or percentage of capacity and associated energy gen-
erated by a specified generating unit (or units) and pays its propor-
tional amount of the unit’s total costs, pursuant to a contract— 
(A) for the life of the unit; 
(B) for a cumulative term of not less than 30 years, including 
contracts that permit an election for early termination; or 
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(C) for a period equal to or greater than 25 years or 70 percent 
of the economic useful life of the unit determined as of the time 
the unit is built, with option rights to purchase or re-lease a por-
tion of the capacity and associated energy generated by the unit 
(or units) at the end of the period. 
(20) NAPAP.—The term ‘‘NAPAP’’ means the National Acid Pre-
cipitation Assessment Program. 
(21) NEW UNIT.—The term ‘‘new unit’’ means a unit that com-
mences commercial operation on or after November 15, 1990. 
(22) NEW UTILITY UNIT.—The term ‘‘new utility unit’’ means a new 
unit that is a utility unit. 
(23) NONUTILITY UNIT.—The term ‘‘nonutility unit’’ means a unit 
other than a utility unit. 
(24) PERMITTING
AUTHORITY.—The term ‘‘permitting authority’’ 
means— 
(A) the Administrator; or 
(B) a State or local air pollution control agency, with an ap-
proved permitting program under subdivision 6. 
(25) PHASE II BONUS ALLOWANCE ALLOCATION.—The term ‘‘Phase 
II bonus allowance allocation’’ means, for calendars years 2000 
through 2009, an allocation made by the Administrator pursuant to— 
(A) section 233103 of this title; 
(B) subsections (a)(2), (b)(2), (c)(4), (d)(3) (except as other-
wise provided therein), and (h)(2) of section 233105 of this title; 
or 
(C) section 233106 of this title. 
(26) QUALIFYING
PHASE
I
TECHNOLOGY.—The term ‘‘qualifying 
phase I technology’’ means a technological system of continuous emis-
sion reduction that achieves a 90 percent reduction in emissions of sul-
fur dioxide from the emissions that would have resulted from the use 
of fuels that were not subject to treatment prior to combustion. 
(27) REPOWER.— 
(A) IN GENERAL.—The term ‘‘repower’’ means— 
(i) to replace an existing coal-fired boiler with 1 of the 
clean coal technologies described in subparagraph (B); or 
(ii) to be an oil- or gas-fired unit that was awarded clean 
coal technology demonstration funding as of January 1, 1991, 
by the Department of Energy. 
(B) CLEAN COAL TECHNOLOGIES.—The clean coal technologies 
described in subparagraph (A)(i) are— 
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(i) atmospheric or pressurized fluidized bed combustion 
technology; 
(ii) integrated gasification combined cycle technology; 
(iii) magnetohydrodynamic technology; 
(iv) direct and indirect coal-fired turbine technology; 
(v) integrated gasification fuel cell technology; 
(vi) a derivative of 1 or more of the technologies described 
in clauses (i) through (v), as determined by the Administrator 
in consultation with the Secretary of Energy; and 
(vii) any other technology capable of controlling multiple 
combustion emissions simultaneously with improved boiler or 
generation efficiency and with significantly greater waste re-
duction relative to the performance of technology in wide-
spread commercial use as of November 15, 1990. 
(28) RESERVE.—The term ‘‘reserve’’ means a bank of allowances es-
tablished by the Administrator under this subdivision. 
(29) STATE.—The term ‘‘State’’ means 1 of the 48 contiguous 
States and the District of Columbia. 
(30) UNIT.—The term ‘‘unit’’ means a fossil fuel-fired combustion 
device used to generate electricity. 
(31) UTILITY UNIT.— 
(A) IN GENERAL.—The term ‘‘utility unit’’ means— 
(i) a unit that serves a generator in any State that pro-
duces electricity for sale; or 
(ii) a unit that, during 1985, served a generator in any 
State that produced electricity for sale. 
(B) EXCLUSIONS.—The term ‘‘utility unit’’ does not include— 
(i) a unit that— 
(I) was in commercial operation during 1985; but 
(II) did not, during 1985, serve a generator in any 
State that produced electricity for sale; or 
(ii) a unit that cogenerates steam and electricity, unless the 
unit is constructed for the purpose of supplying, or com-
mences construction after November 15, 1990, and supplies, 
more than 1⁄3 of its potential electric output capacity and 
more than 25 megawatts electrical output to any utility power 
distribution system for sale. 
§ 233103. Sulfur dioxide allowance program for existing 
units and new units 
(a) ALLOCATIONS OF ANNUAL ALLOWANCES FOR EXISTING UNITS AND 
NEW UNITS.— 
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