PUBLIC LAW 101-549—NOV. 15, 1990 104 STAT. 2613 operator and (ii) the number of allowances allocated for the unit pursuant to the emissions limitation requirements of subsection (b)(1): Provided, That the number of allowances allocated pursuant to this paragraph shall not exceed an annual total of 5,000. If necessary to meeting the 5,000-allowance restriction imposed in the last clause of the preceding sentence the Administrator shall reduce, pro rata, the additional allowances allocated to each unit pursuant to this paragraph. "( j) CERTAIN MUNICIPALLY OWNED POWER PLANTS.— Beginning January 1, 2000, in addition to allowances allocated pursuant to this section and section 403(a)(1) as basic Phase II allowance allocations, the Administrator shall allocate annually for each existing municipally owned oil and gas-fired utility unit 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 in an amount equal to the product of the unit's annual fuel consumption on a Btu basis at a 60 percent capacity factor multiplied by the lesser of its allowable 1985 emission rate or its actual 1985 emission rate, divided by 2,000. "SEC. 406. ALLOWANCES FOR STATES WITH EMISSIONS RATES AT OR 42 USC 7651e. BELOW 0.80 LBS/MMBTU. "(a) ELECTION OF GOVERNOR.— In addition to basic Phase II allowance allocations, upon the election of the Oovernor of any State, with a 1985 state-wide annual sulfur dioxide emissions rate equal to or less than, 0.80 Ibs/mmBtu, averaged over all fossil fuel-fired utility steam generating units, beginning January 1, 2000, and for each calendar year thereafter until and including 2009, the Administrator shall allocate, in lieu of other Phase II bonus allowance allocations, allowances from the reserve created pursuant to section 405(a)(2) to all such units in the State in an amount equal to 125,000 multiplied by the unit's pro rata share of electricity generated in calendar year 1985 at fossil fuel-fired utility steam units in all States eligible for the election. "(b) NOTIFICATION OF ADMINISTRATOR.— Pursuant to section 403(a)(1), each Governor of a State eligible to make an election under paragraph (a) shall notify the Administrator of such election. In the event that the Governor of any such State fails to notify the Administrator of the Governor's elections, the Administrator shall allocate allowances pursuant to section 405. "(c) ALLOWANCES AFTER JANUARY 1, 2010.— After January 1, 2010, the Administrator shall allocate allowances to units subject to the provisions of this section pursuant to section 405. "SEC. 407. NITROGEN OXIDES EMISSION REDUCTION PROGRAM. 42 USC 7651f. "(a) APPLICABILITY.—On the date that a coal-fired utility unit becomes an affected unit pursuant to sections 404, 405, 409, or on the date a unit subject to the provisions of section 404(d) or 409(b), must meet the SO2 reduction requirements, each such unit shall become an affected unit for purposes of this section and shall be subject to the emission limitations for nitrogen oxides set forth herein. "(b) EMISSION LIMITATIONS. — (1) Not later than eighteen months Regulations. after enactment of the Clean Air Act Amendments of 1990, the Administrator shall by regulation establish annual allowable emission limitations for nitrogen oxides for the types of utility boilers listed below, which limitations shall not exceed the rates listed below: Provided, That the Administrator may set a rate higher than
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