Summary

                                        
                            Title IV - Acid Rain


   *  SO2 REDUCTION: A 10 million ton reduction from 1980 levels,
      primarily from utility sources. Caps annual utility SO2
      emissions at approximately 8.9 million tons by 2000.


   *  ALLOWANCES: SO2 reductions are met through an innovative
      market-based system. Affected sources are allocated allowances
      based on required emission reductions and past energy use. An
      allowance is worth one ton of SO2 and it is fully marketable.
      Sources must hold allowances equal to their level of emissions
      or face a $2000/excess ton penalty and a requirement to offset
      excess tons in future years. EPA will also hold special sales
      and auctions of allowances.


   *  PHASE I: SO2 emission reductions are achieved in two phases.
      Phase I allowances are allocated to large units of 100 MW or
      greater that emit more than 2.5 lb/mmbtu in an amount equal to
      2.5 lb/mmBtu x their 1985-87 energy usage (baseline). Phase I
      must be met by 1995 but units that install certain control
      technologies may postpone compliance until 1997, and may be
      eligible for bonus allowances. Units in Illinois, Indiana or
      Ohio are allotted a pro rata share of an additional 200,000
      allowances annually during Phase I.


   *  PHASE II: Phase II begins in 2000. All utility units greater
      than 25 MW that emit at a rate above 1.2 lbs/mmBtu will be
      allocated allowances at that rate x their baseline fuel
      consumption. Cleaner plants generally will be provided with
      20% more allowances than would have been received based on
      their baseline consumption. 50,000 bonus allowances are
      allocated to plants in 10 midwestern states that make
      reductions in Phase I.


   *  NOx: Utility NOx reductions will help to achieve a 2 million
      ton reduction from 1980 levels. Reductions will be
      accomplished through required EPA performance standards for
      certain existing boilers in Phase I, and others in Phase II.
      EPA will develop a revised NOx NSPS for utility boilers.


   *  REPOWERING: Units repowering with qualifying Clean Coal
      Technologies receive a 4 year extension for Phase II
      compliance. Such units may be exempt from New Source Review
      requirements and New Source Performance Standards.


   *  ENERGY CONSERVATION & RENEWABLE ENERGY: These projects may be
      allocated a portion of up to 300,000 incentive allowances.


   *  CLEAN COAL TECHNOLOGIES (CCT): Certain CCT demonstration
      projects may be exempt from NSPS, NSR, and Title I
      nonattainment requirements.


   *  MONITORING: Requires continuous emission monitors or an
      equivalent for SO2 and NOx and also requires opacity and flow
      monitors.