Common use of Emissions Allowances Clause in Contracts

Emissions Allowances. The Federal Clean Air Act, as amended, 42 U.S.C. 7401 et seq. (hereinafter referred to as "Clean Air Act"), establishes certain annual maximum sulfur dioxide levels for flue gases emitted by electric generating units, including units operated by IPL, IMPA and other electric utilities who may supply electric energy for transactions under this Agreement. The Clean Air Act also created an emissions allowance system to permit emissions of regulated pollutants. The obligation of obtaining and the cost of supplying and/or replacing consumed sulfur dioxide and other atmospheric emission allowances, if any, when allowance programs become effective shall be the responsibility of the Party purchasing the power and energy unless as otherwise mutually agreed by the Parties. The Parties shall establish, by mutual agreement, appropriate procedures to carry out the provisions of this Paragraph 3.06. Such procedures shall be amended as necessary to remain in compliance with all Federal Energy Regulatory Commission ("FERC") and Indiana Utility Regulatory Commission ("IURC") rules and regulations.