‘‘(2) may be terminated or limited by the Ad-
ministrator. 
‘‘(h) NO JUDICIAL REVIEW.—An allocation of carbon 
dioxide allowances by the Administrator under subsection 
(c) or (d) shall not be subject to judicial review.’’. 
SEC. 4. NEW SOURCE REVIEW PROGRAM. 
Section 165 of the Clean Air Act (42 U.S.C. 7475) 
is amended by adding at the end the following: 
‘‘(f) REVISIONS
TO NEW SOURCE REVIEW PRO-
GRAM.—
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) COVERED UNIT.—The term ‘covered 
unit’ has the meaning given the term in section 
701. 
‘‘(B) NEW SOURCE REVIEW PROGRAM.—
The term ‘new source review program’ means 
the program to carry out section 111 and this 
part. 
‘‘(2) REGULATIONS.—In accordance with this 
subsection, the Administrator shall promulgate revi-
sions to the new source review program. 
‘‘(3) 
APPLICABILITY
CRITERIA.—Beginning 
January 1, 2009, the new source review program 
shall apply only to—
‘‘(A) construction of a new covered unit, 
which shall include the replacement of an exist-
ing boiler; and 
‘‘(B) activities that result in any increase 
in the maximum hourly rate of emissions from 
a covered unit of air pollutants regulated under 
the new source review program (measured in 
pounds per megawatt hour), after netting 
among covered units at a source. 
‘‘(4) PERFORMANCE
STANDARDS.—Beginning 
in 2020, all affected units, as that term is defined 
under section 701 for nitrogen oxides and carbon di-
oxide, on which construction commenced before Au-
gust 17, 1971, shall meet the following performance 
standards: 
‘‘(A) 4.5 lbs/MWh for sulfur dioxide; and 
‘‘(B) 2.5 lbs/MWh for nitrogen oxides. 
‘‘(5) BI-ANNUAL DEFINITION OF BEST AVAIL-
ABLE CONTROL TECHNOLOGY AND LOWEST ACHIEV-
ABLE
EMISSION
RATE.—The definitions of ‘best 
available control technology’ under section 169 and 
of ‘lowest achievable emission rate’ under section 
171 shall be revised to require the Administrator to 
define on a bi-annual basis best available control
technology and lowest achievable emission rate as 
those terms apply to covered units. 
‘‘(6) LOWEST ACHIEVABLE EMISSION RATE.—
The regulations shall revise the definition of ‘lowest 
achievable emission rate’ under section 171, with re-
spect to technology required to be installed by the 
electric generating sector, to allow costs to be con-
sidered in the determination of the lowest achievable 
emission rate, so that, beginning January 1, 2009, 
a covered unit (as defined in section 701) shall not 
be required to install technology required to meet a 
lowest achievable emission rate if the cost of the 
technology exceeds a maximum amount (in dollars 
per ton) that is determined by the Administrator. In 
no event shall such cost be more than twice the 
amount of the applicable cost guideline for best 
available control technology. 
‘‘(7) EMISSION
OFFSETS.—No source within 
the electric generating sector that locates in a non-
attainment area after December 31, 2008, shall be 
required to obtain offsets for emissions of air pollut-
ants. 
‘‘(8) NO EFFECT ON OTHER REQUIREMENTS.—
Nothing in this subsection affects the obligation of 
any State or local government to comply with the re-
quirements established under this section con-
cerning—
‘‘(A) national ambient air quality stand-
ards; 
‘‘(B) maximum allowable air pollutant in-
creases or maximum allowable air pollutant 
concentrations; or 
‘‘(C) protection of visibility and other air 
quality-related values in areas designated as 
class I areas under part C of title I. Addition-
ally, States are required to identify areas with 
adverse local air quality impacts and to impose 
such facility-specific and other measures as are 
necessary to remedy such impacts in light of 
the national pollutant tonnage limitations in 
section 702.’’. 
SEC. 5. REVISIONS TO SULFUR DIOXIDE ALLOWANCE PRO-
GRAM. 
(a) IN GENERAL.—Title IV of the Clean Air Act (re-
lating to acid deposition control) (42 U.S.C. 7651 et seq.) 
is amended by adding at the end the following:
‘‘SEC. 417. REVISIONS TO SULFUR DIOXIDE ALLOWANCE 
PROGRAM. 
‘‘(a) DEFINITIONS.—In this section, the terms ‘af-
fected unit’ and ‘new unit’ have the meanings given the 
terms in section 701. 
‘‘(b) REGULATIONS.—Not later than January 1, 
2004, the Administrator shall promulgate such revisions 
to the regulations to implement this title as the Adminis-
trator determines to be necessary to implement section 
702(a). 
‘‘(c) NEW UNIT RESERVE.—
‘‘(1) ESTABLISHMENT.—Subject to the annual 
tonnage limitation for emissions of sulfur dioxide 
from affected units specified in section 702(a), the 
Administrator shall establish by regulation a reserve 
of allowances to be set aside for use by new units. 
‘‘(2) DETERMINATION OF QUANTITY.—The Ad-
ministrator, in consultation with the Secretary of 
Energy, shall determine, based on projections of 
electricity output for new units—
‘‘(A) not later than June 30, 2005, the 
quantity of allowances required to be held in re-
serve for new units for each of calendar years 
2009 through 2013; and 
‘‘(B) not later than June 30 of each fifth 
calendar year thereafter, the quantity of allow-