510 
§ 233113. Enforcement 
In addition to the other requirements and prohibitions provided for in this 
subdivision, the operation of any affected unit to emit sulfur dioxide in ex-
cess of allowances held for the unit shall be deemed a violation, with each 
ton emitted in excess of allowances held constituting a separate violation. 
§ 233114. Clean coal technology regulatory incentives 
(a) DEFINITIONS.—In this section: 
(1) CLEAN COAL TECHNOLOGY.—The term ‘‘clean coal technology’’ 
means 
any 
technology 
(including 
technology 
applied 
at 
the 
precombustion, combustion, or post combustion stage) at a new or ex-
isting facility that will achieve significant reductions in air emissions 
of sulfur dioxide or nitrogen oxides associated with the utilization of 
coal in the generation of electricity, process steam, or industrial prod-
ucts, that was not in widespread use as of November 15, 1990. 
(2) CLEAN
COAL
TECHNOLOGY
DEMONSTRATION
PROJECT.—The 
term ‘‘clean coal technology demonstration project’’ means a project 
using funds appropriated under the heading ‘‘Department of Energy— 
Clean Coal Technology’’, up to a total amount of $2,500,000,000 for 
commercial demonstration of clean coal technology, or a similar project 
funded through appropriations for EPA. 
(b) REGULATIONS FOR CLEAN COAL TECHNOLOGY DEMONSTRATIONS.— 
(1) APPLICABILITY.—This subsection applies to physical or oper-
ational changes to existing facilities for the sole purpose of installation, 
operation, cessation, or removal of a temporary or permanent clean coal 
technology demonstration project. 
(2) FEDERAL CONTRIBUTION.—The Federal contribution for a clean 
coal technology demonstration project shall be at least 20 percent of 
the total cost of the clean coal technology demonstration project. 
(3) TEMPORARY PROJECTS.—Installation, operation, cessation, or re-
moval of a temporary clean coal technology demonstration project that 
is operated for a period of 5 years or less, and that complies with the 
State implementation plans for the State in which the project is located 
and other requirements necessary to attain and maintain the NAAQSes 
during and after the project is terminated, shall not subject the facility 
to the requirements of section 211111 of this title or chapter 213 or 
215. 
(4) PERMANENT PROJECTS.—For permanent clean coal technology 
demonstration projects that constitute repowering, a clean coal tech-
nology demonstration project shall not be subject to standards of per-
formance under section 211111 of this title or to the review and per-
mitting requirements of chapter 213 for any pollutant the potential 
VerDate Sep 11 2014 
03:35 Jun 19, 2015
Jkt 049200
PO 00000
Frm 00510
Fmt 6652
Sfmt 6221
E:\BILLS\H2834.IH
H2834
smartinez on DSK4TPTVN1PROD with BILLS
511 
emissions of which will not increase as a result of the clean coal tech-
nology demonstration project. 
(5) REGULATIONS.—The Administrator shall promulgate regulations 
or interpretive rulings to revise requirements under section 211111 of 
this title and chapters 213 and 215, as appropriate, to facilitate 
projects consistent with this subsection. With respect to chapters 213 
and 215, the regulations or rulings shall apply to all areas in which 
EPA is the permitting authority. In instances in which the State is the 
permitting authority under chapter 213 or 215, the State may adopt 
and submit to the Administrator for approval provisions in its imple-
mentation plan to apply the regulations or rulings promulgated under 
this subsection. 
(c) EXEMPTION FOR REACTIVATION OF VERY CLEAN UNITS.—Physical 
changes or changes in the method of operation associated with the com-
mencement of commercial operations by a coal-fired utility unit after a pe-
riod of discontinued operation shall not subject the unit to the requirements 
of section 211111 of this title or chapter 213 where the unit— 
(1) was not in operation for the 2-year period prior to November 15, 
1990, and the emissions from the unit continued to be carried in the 
permitting authority’s emissions inventory as of that date; 
(2) was equipped prior to shutdown with a continuous system of 
emission control that achieves a removal efficiency for sulfur dioxide of 
not less than 85 percent and a removal efficiency for particulates of 
not less than 98 percent; 
(3) is equipped with low-nitrogen oxide burners prior to the time of 
commencement; and 
(4) is otherwise in compliance with the requirements of this division. 
§ 233115. Contingency guarantee; auctions; reserve 
(a) DEFINITIONS.—In this section: 
(1) AUCTION SUBACCOUNT.—The term ‘‘auction subaccount’’ means 
the subaccount for auctions established under subsection (d). 
(2) DIRECT SALE SUBACCOUNT.—The term ‘‘direct sale subaccount’’ 
means the subaccount for direct sales established under subsection (c). 
(3) INDEPENDENT
POWER
PRODUCER.—The term ‘‘independent 
power producer’’ means a person that owns or operates, in whole or 
in part, 1 or more new independent power production facilities. 
(4) NEW INDEPENDENT POWER PRODUCTION FACILITY.—The term 
‘‘new independent power production facility’’ means a facility that— 
(A) is used for the generation of electric energy, 80 percent or 
more of which is sold at wholesale; 
VerDate Sep 11 2014 
03:35 Jun 19, 2015
Jkt 049200
PO 00000
Frm 00511
Fmt 6652
Sfmt 6221
E:\BILLS\H2834.IH
H2834
smartinez on DSK4TPTVN1PROD with BILLS
512 
(B) is nonrecourse project-financed (as defined by the Secretary 
of Energy within 3 months of November 15, 1990); 
(C) does not generate electric energy sold to any affiliate (as de-
fined in section 2(a) of the Public Utility Holding Company Act 
of 1935) (15 U.S.C. 79b(a)) (as in effect before the repeal of that 
section) of the facility’s owner or operator unless the owner or op-
erator of the facility demonstrates that it cannot obtain allowances 
from the affiliate; and 
(D) is a new unit required to hold allowances under this subdivi-
sion. 
(5) REQUIRED
ALLOWANCES.—The term ‘‘required allowances’’ 
means the allowances required to operate a unit for so much of the 
unit’s useful life as occurs after January 1, 2000. 
(6) SPECIAL ALLOWANCE RESERVE.—The term ‘‘special allowance 
reserve’’ means the special allowance reserve established under sub-
section (b). 
(b) SPECIAL ALLOWANCE RESERVE.— 
(1) IN GENERAL.—The Administrator shall promulgate regulations 
establishing a special allowance reserve containing allowances to be sold 
under this section. 
(2) WITHHOLDING.—For purposes of establishing the special allow-
ance reserve, the Administrator shall withhold 2.8 percent of the basic 
Phase II allowance allocation of allowances for each year that would 
(but for this subsection) be issued for each affected unit at an affected 
source. The Administrator shall record such withholding for purposes 
of transferring the proceeds of the allowance sales under this sub-
section. The allowances so withheld shall be deposited in the special al-
lowance reserve. 
(c) DIRECT SALE AT $1,500 PER TON.— 
(1) DIRECT
SALE
SUBACCOUNT.—In accordance with regulations 
under this section, the Administrator shall establish a direct sale sub-
account in the special allowance reserve. The direct sale subaccount 
shall contain allowances in the amount of 50,000 tons per year for each 
year. 
(2) SALES.— 
(A) IN GENERAL.—Allowances in the direct sale subaccount 
shall be offered for direct sale to any person at the times and in 
the amounts specified in table 1 at a price of $1,500 per allow-
ance, adjusted by the Consumer Price Index in the same manner 
as is provided in paragraph (3). 
VerDate Sep 11 2014 
03:35 Jun 19, 2015
Jkt 049200
PO 00000
Frm 00512
Fmt 6652
Sfmt 6221
E:\BILLS\H2834.IH
H2834
smartinez on DSK4TPTVN1PROD with BILLS
513 
TABLE 1—NUMBER OF ALLOWANCES AVAILABLE FOR SALE AT $1,500 PER TON 
Year of Sale 
Spot Sale 
(same year) 
Advance Sale 
2000 and thereafter .............................................
25,000 
25,000 
Allowances sold in the spot sale in any year are allowances that may be used only 
in that year (unless banked for use in a later year). Allowances sold in the advance 
sale in any year are allowances that may be used only in the 7th year after the year 
in which the allowances are first offered for sale (unless banked for use in a later 
year). 
(B) APPROVAL.—Requests to purchase allowances from the di-
rect sale subaccount shall be approved in the order of receipt until 
no allowances remain in the subaccount, except that an oppor-
tunity to purchase such allowances shall be provided to inde-
pendent power producers before the allowances are offered to any 
other person. 
(C) PAYMENT.—Each applicant shall be required to pay 50 per-
cent of the total purchase price of the allowances within 6 months 
after the approval of the request to purchase. The remainder shall 
be paid on or before the transfer of the allowances. 
(3) ISSUANCE OF GUARANTEED ALLOWANCES FROM DIRECT SALE 
SUBACCOUNT.—From the allowances available in the direct sale sub-
account, on payment of the guaranteed price, the Administrator shall 
issue to any person exercising the right to purchase allowances pursu-
ant to a guarantee under this subsection the allowances covered by the 
guarantee. Persons to which guarantees under this subsection have 
been issued shall have the opportunity to purchase allowances pursuant 
to the guarantee from the direct sale subaccount before the allowances 
in the reserve are offered for sale to any other person. 
(4) PROCEEDS.—Notwithstanding section 3302 of title 31 or any 
other provision of law, the Administrator shall require that the pro-
ceeds of any sale under this subsection be transferred, within 90 days 
after the sale, without charge, on a pro rata basis to the owners or 
operators of the affected units from which the allowances were withheld 
under subsection (b) and that any unsold allowances be transferred to 
the auction subaccount. No proceeds of any sale under this subsection 
shall be held by any officer or employee of the United States or treated 
for any purpose as revenue to the United States or to the Adminis-
trator. 
(5) TERMINATION OF DIRECT SALE SUBACCOUNT.—If the Adminis-
trator determines that, during any period of 2 consecutive calendar 
years, fewer than 20 percent of the allowances available in the direct 
sale subaccount have been purchased under this paragraph, the Admin-
istrator shall terminate the direct sale subaccount and transfer the al-
lowances to the auction subaccount. 
VerDate Sep 11 2014 
03:35 Jun 19, 2015
Jkt 049200
PO 00000
Frm 00513
Fmt 6652
Sfmt 6221
E:\BILLS\H2834.IH
H2834
smartinez on DSK4TPTVN1PROD with BILLS