PUBLIC LAW 101-549—NOV. 15, 1990 104 STAT. 2627 date of the enactment of the Clean Air Act Amendments of 1990); "(C) does not generate electric energy sold to any affiliate (as defined in section 2(a)(ll) of the Public Utility Holding Company Act of 1935) of the facility's owner or operator unless the owner or operator of the facility demonstrates that it cannot obtain allowances from the affiliate; and "(D) is a new unit required to hold allowances under this title. "(3) The term 'required allowances' means the allowances required to operate such unit for so much of the unit's useful life as occurs after January 1, 2000. "(b) SPECIAL RESERVE OF ALLOWANCES.— Within 36 months after Regulations, the date of the enactment of the Clean Air Act Amendments of 1990, the Administrator shall promulgate regulations establishing a Special Allowance Reserve containing allowances to be sold under this section. For purposes of establishing the Special Allowance Reserve, the Administrator shall withhold— "(1) 2.8 percent of the allocation of allowances for each year from 1995 through 1999 inclusive; and "(2) 2.8 percent of the basic Phase II allowance allocation of allowances for each year beginning in the year 2000 which would (but for this subsection) be issued for each affected unit at an affected source. The Administrator shall record such withhold- Records, ing for purposes of transferring the proceeds of the allowance sales under this subsection. The allowances so withheld shall be deposited in the Reserve under this section. " (c) DIRECT SALE AT $1,500 PER TON.— "(1) SUBACCOUNT FOR DIRECT SALES. — In accordance with regulations under this section, the Administrator shall establish a Direct Sale Subaccount in the Special Allowance Reserve established under this section. The Direct Sale Subaccount shall contain allowances in the amount of 50,000 tons per year for each year beginning in the year 2000. "(2) SALES.— Al lowances in the 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 allowance, adjusted by the Consumer Price Index in the same manner as provided in paragraph (3). Requests to purchase allowances from the Direct Sale Subaccount established under paragraph (1) shall be approved in the order of receipt until no allowances remain in such subaccount, except that an opportunity to purchase such allowances shall be provided to the independent power producers referred to in this subsection before such allowances are offered to any other person. Each applicant shall be required to pay 50 percent 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.
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