TECHNICAL SUPPORT DOCUMENT 

Louisiana CAIR NOX Trading Programs Abbreviated 

SIP Revision: Louisiana Methodologies for the CAIR 

NOX Annual and Ozone Season Allocations 

Louisiana CAIR SO2 SIP Revision 

Louisiana Administrative Code 

Title 33 – Environmental Quality 

Part III – Air 

Chapter 5 – Permit Procedures 

Section 506 – Clean Air Interstate Rule Requirements 

§§ 506(A), (B), and (C) 

March 24, 2014 

FOR FURTHER INFORMATION CONTACT: Ms. Adina Wiley, United States 

Environmental Protection Agency Region 6, Air Permits Section (6PD-R), 1445 Ross 

Avenue, Dallas, Texas, 75202-2733, (214) 665-2115 
2 

Subject: Review of Revisions to the State Implementation Plan Louisiana 

Administrative Code, Title 33, Part III, Chapter 5, Sections 506(A), 

506(B), and 506(C) 

Contents: 

I. Executive Summary 

II. Background of State Submittal 

III. Summary of State Submittal 

IV. Technical Review 

A. Part 51, Appendix V Completeness Checklist 

B. Requirements for All CAIR Submissions 

C. Requirements for CAIR Trading Programs 

D. Part 51 Requirements 

E. Section 110(l) Demonstration 

F. Additional Revisions to CAIR 

V. Conclusion 
3 

I. Executive Summary 

This technical support document (TSD) reviews proposed revisions to the Louisiana State 

Implementation Plan (SIP) concerning the Clean Air Interstate Rule (CAIR) Nitrogen 

Oxides (NOX) Annual and Ozone Season Allocation Methodologies and the sulfur 

dioxide (SO2) Annual Trading Program. 

On July 1, 2009, the Secretary of the Louisiana Department of Environmental Quality 

(LDEQ), Harold Leggett, Ph.D. requested review and approval into the Louisiana SIP of 

revisions adopted on June 20, 2008, to the Louisiana CAIR NOX Annual and Ozone 

Season Allocation methodologies and the incorporation by reference dates of the CAIR 

SO2 Annual SIP. 

This review will determine if the revisions to LAC 33:III.506 (A), (B), and (C) comply 

with the Clean Air Act and EPA regulations and guidance. 
4 

II. Background for State Submittal 

Summary of the Clean Air Interstate Rule 

EPA published CAIR on May 12, 2005 (70 FR 25162). In CAIR, EPA determined that 

28 states and the District of Columbia contribute significantly to nonattainment and 

interfere with maintenance of the 1997 national ambient air quality standards (NAAQS) 

for fine particles (PM2.5) and/or the 1997 8-hour ozone NAAQS in downwind states in 

the eastern part of the country. As a result, EPA required those upwind states to revise 

their SIPs to include control measures that reduce emissions of sulfur dioxide (SO2), 

which is a precursor to PM2.5 formation, and/or nitrogen oxides (NOX), which is a 

precursor to both ozone and PM2.5 formation. For jurisdictions that contribute 

significantly to downwind PM2.5 nonattainment, CAIR sets annual state-wide emission 

reduction requirements (i.e., budgets) for SO2 and NOX. Similarly, for jurisdictions that 

contribute significantly to 8-hour ozone nonattainment, CAIR sets state-wide emission 

budgets for NOX for the ozone season (May 1st to September 30th). Under CAIR, states 

may implement these reduction requirements by participating in the EPA-administered 

cap-and-trade programs or by adopting any other control measures. 

 

Additionally, on April 28, 2006, EPA published two additional CAIR-related final rules 

that added the states of Delaware and New Jersey to the list of states subject to CAIR for 

1997 PM2.5 and announced EPA’s final decisions on reconsideration of five issues, 

without making any substantive changes to the CAIR requirements. On October 19, 

2007, EPA amended CAIR to clarify the definition of “cogeneration unit” and, thus, the 

applicability of the CAIR trading program to cogeneration units. 

EPA was sued by a number of parties on various aspects of CAIR, and on July 11, 2008, 

the DC Circuit Court found CAIR unlawful. North Carolina v. EPA, 531 F.3d 896 (DC 

Cir. 2008). The Court's original decision vacated CAIR. Id. at 929-30. However, the 

Court subsequently remanded CAIR to EPA without vacatur because it found that 

allowing CAIR to remain in effect until it is replaced would preserve the environmental 

values covered by CAIR. On August 8, 2011, EPA finalized its Cross State Air Pollution 

Rule (Transport Rule) intended to replace the remanded CAIR. However, on August 21, 

2012, the D.C. Circuit issued a decision vacating the Transport Rule. EME Homer City 

Generation, L.P. v. EPA, 696 F.3d 7 (D.C. Cir. 2012). The Court again ordered EPA to 

continue implementing CAIR in the interim pending promulgation of a replacement rule. 

Subsequently, the Supreme Court granted the United States' petition for certiorari and 

agreed to review the D.C. Circuit's decision in EME Homer City, and held oral arguments 

on December 10, 2013. A decision is currently pending. In the meantime, EPA intends to 

act in accordance with the D.C. Circuit’s instruction in EME Homer City to continue 

implementing CAIR. CAIR requirements are in place, its regional control programs are 

operating while EPA develops replacement rules in response to the pertinent court 

decisions, and CAIR requirements remain in effect for Louisiana. The instant actions 

have no impact on the legal status of CAIR or CSAPR. 
5 

General Overview of CAIR Implementation 

CAIR establishes State-wide emission budgets for SO2 and NOX and is to be 

implemented in two phases. The first phase of NOX reductions started in 2009 and 

continues through 2014, while the first phase of SO2 reductions started in 2010 and 

continues through 2014. The second phase of reductions for both NOX and SO2 starts in 

2015 and continues thereafter. CAIR requires States to implement the budgets by either: 

(1) requiring EGUs to participate in the EPA-administered cap-and-trade programs; or (2) 

adopting other control measures of the State's choosing and demonstrating that such 

control measures will result in compliance with the applicable State SO2 and NOX

budgets. 

The May 12, 2005 and April 28, 2006, CAIR rules provide model rules that States must 

adopt (with certain limited changes, if desired) if they want to participate in the EPAadministered trading programs. With two exceptions, only States that choose to meet the 

requirements of CAIR through methods that exclusively regulate EGUs are allowed to 

participate in the EPA-administered trading programs. One exception is for States that 

adopt the opt-in provisions of the model rules to allow non-EGUs individually to opt into 

the EPA-administered trading programs. The other exception applies to States that 

choose to include all non-EGUs from their NOX SIP Call trading programs in their CAIR 

NOX ozone season trading programs.1

 

States have the flexibility to choose the type of control measures they use to meet the 

requirements of CAIR. EPA anticipated that most States would choose to meet the CAIR 

requirements by selecting an option that requires EGUs to participate in the EPAadministered CAIR cap-and-trade programs. For such States, EPA provides two 

approaches for submitting and obtaining approval for CAIR SIP revisions. States may 

submit full SIP revisions that adopt the model CAIR cap-and-trade rules. If approved, 

these SIP revisions fully replace the CAIR FIPs. Alternatively, States may submit 

abbreviated SIP revisions. These SIP revisions do not replace the CAIR FIPs; however, 

the CAIR FIPs provide that, when approved, the provisions in these abbreviated SIP 

revisions be used instead of or in conjunction with, as appropriate, the corresponding 

provisions of the CAIR FIPs (e.g., the NOX allowance allocation methodology). 

CAIR is scheduled to be implemented in two phases. The first phase of NOX reductions 

starts in 2009 and continues through 2014, while the first phase of SO2 reductions starts 

in 2010 and continues through 2014. The second phase of reductions for both NOX and 

SO2 starts in 2015 and continues thereafter. The phased approach provides adequate lead 

time for States to incorporate the new rule into State regulations and allows sources 

sufficient time to comply with the new emission caps. Under CAIR, States will achieve 

the required emissions reductions using one of two options for compliance: 1) require 

fossil-fuel fired boilers to participate in an EPA-administered interstate cap and trade 

 

1

 Arkansas and Louisiana did not adopt opt-in provisions in the original CAIR SIP submittals. Arkansas 

and Louisiana are not subject to the NOX SIP Call. Therefore, the Arkansas and Louisiana CAIR 

regulations only pertain to EGUs. 
6 

system that caps emissions in two stages, or 2) meet an individual State air emission 

limits through measures of the State's choosing. 

The EPA-administered CAIR trading programs are based on the successful cap-and-trade 

dynamics of the Acid Rain Program. EPA has established state emission budgets for 

annual NOX emissions, ozone season NOX emissions, and SO2 emissions. The state 

budgets are in tons of pollutant and provide a cap for each state. Each state allocates the 

emissions budgets for each pollutant to participating sources in the state. Participating 

sources can choose to operate at their allocated emissions level, above, or below it. If a 

source chooses to operate above its allocation amount then the source must obtain 

additional allowances to demonstrate compliance with the program. If a source chooses 

to operate below its allocation amount then the source has a surplus of allowances that 

can be sold to another participating source or banked for future use. 

How does the Clean Air Interstate Rule NOX Annual and Ozone Season Trading 

Programs Work? 

Under both the annual and ozone season NOX trading programs, a CAIR allowance 

represents the authorization to emit one ton of NOX, regardless of the CAIR phase in 

which the allowance is allocated. Compliance is demonstrated separately each control 

period for both the annual NOX and ozone season NOX programs. 

How does the Clean Air Interstate Rule SO2 Trading Program Work? 

The SO2 model rule is designed to satisfy the ongoing statutory requirements of the Title 

IV Acid Rain SO2 cap and trade program. As a result, the model SO2 cap and trade rule 

builds on and coordinates with the Title IV SO2 program to ensure that the required 

reductions under CAIR are achieved while preserving the efficacy of the Title IV 

program. The model CAIR SO2 cap and trade program will utilize the Title IV 

allowances for compliance at a ratio of 2 allowances per ton of emissions for allowances 

allocated for 2010 through 2014, and 2.86 allowances per ton of emissions for allowances 

allocated for 2015 or thereafter. Title IV allowances will continue to be freely 

transferable among sources covered by the Acid Rain Program and sources covered by 

the model SO2 cap and trade program under CAIR. However, each Title IV allowance 

used to comply with Title IV will be removed from the source’s allowance tracking 

system and cannot be used again for compliance, either in the CAIR model SO2 cap and 

trade program or the Acid Rain Program. 

 
7 

III. Summary of State Submittal 

On May 12, 2005, EPA found that Louisiana contributed significantly to the transport of 

8-hour ozone and PM2.5 emissions to downwind counties in Alabama and Texas. Thus, 

Louisiana was required to address CAIR requirements for NOX annual, NOX ozone 

season, and SO2 emissions. To address the concerns of interstate transport, the LDEQ 

initiated a stakeholder process to work with affected industry and the Louisiana Public 

Service Commission (LPSC). 

LDEQ submitted a full CAIR SIP revision on September 22, 2006, that incorporated by 

reference the CAIR SO2 trading program at 40 CFR Part 96, Subparts AAA – HHH. EPA 

published a direct final approval of the LA CAIR SO2 Trading Program on July 20, 2007. 

See 72 FR 39741. 

LDEQ submitted an abbreviated SIP revision for parallel processing on July 12, 2007, to 

replace the allocation methodologies for the NOX Annual and NOX Ozone Season 

Trading Programs. EPA approved the abbreviated SIP revision for NOX Annual and NOX

Ozone Season requirements on September 28, 2007. See 72 FR 55064. 

Subsequent to our initial approvals of the SO2 CAIR SIP and the abbreviated CAIR SIPs 

for NOX Annual and NOX Ozone Season, the LDEQ has adopted revisions to the 

Louisiana CAIR provisions. These revisions were submitted as revisions to the Louisiana 

SIP on July 1, 2009. Specifically, the LDEQ submitted the following revisions: 

 CAIR NOX Annual Abbreviated SIP Revision 

o The LDEQ submitted revisions to the CAIR NOX Annual Abbreviated SIP 

at LAC 33:III.506(A) Clean Air Interstate Rule Requirements – Nitrogen 

Oxide Annual Program. The LDEQ has revised the introductory paragraph 

to state that the requirements of 40 CFR Part 97, Subparts AA – HH for 

the CAIR NOX Annual Trading Program, as revised on October 19, 2007, 

continue to apply, except as modified by the Louisiana CAIR NOX Annual 

abbreviated SIP. 

o The abbreviated SIP revision for NOX Annual Allocation methodology at 

LAC 33.III.506(A) will continue to replace the requirements at 40 CFR 

97.141 and 97.142 regarding Timing Requirements for CAIR NOX

Allowance Allocations and CAIR NOX Allowance Allocations. 

o The LDEQ also submitted revisions to the Louisiana CAIR NOX Annual 

Allocation Methodology. These revisions are implemented through new 

and amended definitions applicable to the Louisiana CAIR NOX Annual 

program at LAC 33:III.506(A)(1) and the provisions establishing the 

allocation calculations at LAC 33:III.506(A)(2). Combined, these 

revisions modify the Louisiana CAIR NOX annual allocation methodology 

to more equitably distribute allowances to certified and utility units and 

add provisions to address allocations to repowered units. The submitted 

revisions did not revise any of the SIP-approved requirements for 

submittal of the allocations to EPA or revise the NOX Annual budget for 

Louisiana. 
8 

 CAIR NOX Ozone Season Abbreviated SIP Revision 

o The LDEQ submitted revisions to the incorporation by reference date of 

the CAIR NOX Ozone Season Abbreviated SIP at LAC 33:III.506(B) 

Clean Air Interstate Rule Requirements – Nitrogen Oxide Ozone Season 

Program. The LDEQ has revised the introductory paragraph to state that 

the requirements of 40 CFR Part 97, Subparts AAAA – HHHH for the 

CAIR NOX Ozone Season Trading Program, as revised on October 19, 

2007, continue to apply, except as modified by the Louisiana CAIR NOX

Ozone Season abbreviated SIP. 

o The abbreviated SIP revision for NOX Ozone Season Allocation 

methodology at LAC 33.III.506(B) will continue to replace the 

requirements at 40 CFR 97.341 and 97.342 regarding Timing 

Requirements for CAIR NOX Ozone Season Allowance Allocations and 

CAIR NOX Ozone Season Allowance Allocations. 

o The LDEQ also submitted revisions to the Louisiana CAIR NOX Ozone 

Season Allocation Methodology. These revisions are implemented through 

new and amended definitions applicable to the Louisiana CAIR NOX

Ozone Season program at LAC 33:III.506(B)(1) and the provisions 

establishing the allocation calculations at LAC 33:III.506(B)(2). 

Combined, these revisions modify the Louisiana CAIR NOX ozone season 

allocation methodology to more equitably distribute allowances to 

certified and utility units and add provisions to address allocations to 

repowered units. The submitted revisions did not revise any of the SIPapproved requirements for submittal of the allocations to EPA or revise 

the NOX Ozone Season budget for Louisiana. 

 CAIR SO2 SIP Revision 

o The LDEQ submitted a revision to the Louisiana SIP for the CAIR SO2

program to update the CAIR SO2 program incorporation by reference 

dates at LAC 33:III.506.C. In this section, the LDEQ incorporates by 

reference the CAIR SO2 program as published at 40 CFR Part 96 on July 

1, 2007 and revised on October 19, 2007 at 72 FR 59190 – 59207. 
IV. Technical Review 

This technical review of the July 1, 2009, SIP revision for the Louisiana CAIR NOX

Annual and Ozone Season Trading Programs and the SO2 Trading Program consists of a 

comparison between the relevant CAA requirements and the corresponding sections in 

the SIP submittal. The submittal is first reviewed for completeness as a SIP submittal 

under Part 51, Appendix V. Second, the CAIR revisions are reviewed using the SIP 

requirements for CAIR specific requirements and for CAIR trading program specific 

requirements. Finally, a section-by-section review of the submittal in comparison to 40 

CFR Part 51 is presented to determine whether the submittal satisfies the requirements 

for preparation, adoption, and submittal of a SIP revision. These analyses produce a 

written evaluation that was used to make a determination of whether or not the July 1, 

2009, Louisiana CAIR SIP Revisions for CAIR NOX Annual and Ozone Season Trading 

Programs and SO2 Trading program was in agreement with the CAA and other EPA 

policies or guidance. 

A. Part 51, Appendix V Completeness Determination for the July 1, 2009, Louisiana 

SIP Submittal 

B. Evaluation of the July 1, 2009, SIP Revision with Respect to the Louisiana SIP 

C. Evaluation of the July 1, 2009, SIP Revision with Respect to Section 110(l) of 

CAA 
10 

A. Part 51, Appendix V Completeness Determination for the July 1, 2009, 

Louisiana SIP Submittal 

The criteria for completeness determination are found in Appendix V to Part 51 - Criteria 

for determining the completeness of plan submissions and are outlined below: 

1.0 Purpose: This appendix V sets forth the minimum criteria for determining whether 

a State implementation plan submitted for consideration by EPA is an official 

submission for purposes of review under § 51.103. 

1.1 The EPA shall return to the submitting official any plan or revision thereof which 

fails to meet the criteria set forth in this appendix V, and request corrective action, 

identifying the component(s) absent or insufficient to perform a review of the 

submitted plan. 

1.2 The EPA shall inform the submitting official whether or not a plan submission 

meets the requirements of this appendix V within 60 days of EPA's receipt of the 

submittal, but no later than 6 months after the date which the State was required to 

submit the plan or revision. If a completeness determination is not made by 6 

months from receipt of a submittal, the submittal shall be deemed complete by 

operation of law on the date 6 months from receipt. A determination of 

completeness under this paragraph means that the submission is an official 

submission for purposes of §51.103. 

The attached checklist outlines the basic criteria included under 2.1, 2.2, and 2.3 of 

Appendix V. 
11

SIP Completeness Checklist for the July 1, 2009, Louisiana SIP Revision 

When preparing a SIP revision request, the SIP reviewer should go through this list to 

help identify that the package submitted to EPA is complete. States can use the check list 

to assure SIP submittals meet Appendix V criteria. 

Administrative Materials (2.1) 

1. The package is sent with a formal submittal letter from the Governor or his or her 

designee requesting EPA's approval of the revision. 

The July 1, 2009, SIP revision was submitted by Harold Leggett, Ph.D. Secretary 

of the Louisiana Department of Environmental Quality. 

On May 22, 2008, Governor Jindal designated Harold Leggett, Ph.D., as his 

designee for submitting SIP revisions. 

2. Evidence is included that the State has adopted the revision in the State code or 

body of regulations, or that the State has issued the permit, order, consent 

agreement (hereafter document) in final form. This evidence would include the 

date of adoption or final issuance and the effective date of revision, if different 

from adoption/issuance date. 

The revisions to LAC 33:III.506 were adopted by the LDEQ on June 20, 2008, 

and published in the Louisiana Register, Volume 34, No. 06. 

3. Evidence is included that the State has necessary legal authority under State law 

to adopt and implement the revision, e.g., a citation of the appropriate State 

authority. 

The authority for promulgating changes to the Louisiana State Implementation 

Plan, LAC 33:III.506 is found in the Environmental Quality act, R.S. 30:2001 et 

seq., and in accordance with the provisions of the Administrative Procedure Act, 

R.S. 49:950 et seq. 

4. A copy is included of the actual regulation or document submitted for approval 

and incorporation by reference into the SIP including an indication of the changes 

made to the existing approved plan where applicable. The submittal shall be a 

copy of the official State regulation document signed, stamped, and dated by the 

appropriate State official indicating that it is fully enforceable by the State. The 

effective date of the regulation document shall, whenever possible, be indicated in 

the document itself. 

 

 The SIP submittal included a copy of the actual revisions to LAC 33:III.506. 
12

5. Evidence is included that the State followed all the procedural requirements of its 

laws and/or its constitution in the conducting and completing the 

adoption/issuance of the plan. 

The Louisiana Register, Volume 34, Number 6, published June 20, 2008, included 

evidence that the SIP revisions were promulgated under the authority of the 

Environmental Quality Act, R.S. 30:2001 et seq., and in accordance with the 

provisions of the Administrative Procedures Act, R.S. 49:950 et seq.. 

6. Evidence is included that public notice was given of the proposed changes 

consistent with the procedures approved by EPA, including the date of publication 

of such notice, (e.g., notarized or certified copies of any public notices published 

in newspapers). (The notice should be at least 30 days prior to the public 

hearing(s). 

Notices of public hearing for the SIP revision and the revisions to LAC 33:III.506 

were published on: 

 March 12, 2008, in The Town Talk – Alexandria, LA; 

 March 12, 2008, in The Times – Parish of Caddo, LA; 

 March 13, 2008, in the Advocate – Baton Rouge, LA; 

 March 14, 2008, in The Advertiser – Lafayette, LA; 

 March 14, 2008, in the Lake Charles American Press – Lake Charles, LA; 

and 

 March 14, 2008, in The NEWS-STAR – Monroe, LA. 

Certification that the public hearing was held on April 24, 2008, was included. 

7. A certification is included indicating that public hearing(s) was/were held in 

accordance with the information provided in the public notice(s) and the State's 

laws and constitution, if applicable. 

The public hearing for this proposed SIP revision was held on April 24, 2008. 

Lori Overland was the Certified Court Reporter for the April 24, 2008, SIP public 

hearing. She certified that the public hearing was conducted pursuant to R.S. 

37:2551 et seq. 

 

8. A compilation of public comments and the State's response is included. 

LDEQ received one comment letter on this proposed SIP revision, from EPA 

Region 6 on April 28, 2008. The comment letter and the State’s response to 

comments were included in the July 1, 2009 submittal package. 
13

Technical Support (2.2) 

The State should include the following technical information in its SIP revision request 

package. 

1. Identification of all regulated pollutants affected by the revision is included. 

This submittal is an abbreviated SIP revision to replace the annual and ozone 

season NOX allocation methodologies under the CAIR NOX Annual and Ozone 

Season FIPs. This submittal also updates the incorporation by reference dates of 

the CAIR SO2 Annual Trading Program. 

2. Identification of the locations of affected sources including the EPA 

attainment/nonattainment designation of the locations and the status of the 

attainment plan for the affected area(s) is included. 

Owners and operators of NOX and SO2 sources located in Louisiana will meet the 

Louisiana methodology for allocation of annual and ozone season NOX

allowances and requirements of the CAIR SO2 trading program. 

3. Quantification of the changes in SIP allowable emissions from the affected 

sources is included. (Examples include estimates of changes in current actual 

emissions from affected sources and/or, where appropriate, quantification of 

changes in actual emissions from affected sources through calculations of the 

differences between certain baseline levels and allowable emissions anticipated if 

the revisions were approved.) 

The Louisiana Department of Environmental Quality adopted LAC 

33:III.506(A)(2) and (B)(2) that establish the statewide NOX annual and ozone 

season emission budgets will be equivalent to the tons of NOX emissions listed for 

Louisiana in the state annual and ozone season trading budgets under 40 CFR 

51.123 and parts 97.140 and 97.340. EPA’s technical support for CAIR provided 

the estimated change in actual NOx emissions from the affected sources. The 

adopted state budgets have not been changed in the July 1, 2009, SIP revision. 

 The LDEQ has incorporated by reference the CAIR SO2 Trading Program, which 

establishes a statewide cap on SO2 emissions per the state emissions budget at 40 

CFR 51.124(e)(2). This state budget has not been changed in the July 1, 2009, 

SIP revision. 

4. Demonstration is included that the NAAQS/PSD increments/RFP demonstration 

and visibility as applicable would be protected if the revision were approved and 

implemented. 

Not applicable to this SIP submittal EPA provided demonstration in the May 12, 

2005, final CAIR that the cap and trade mechanisms would provide for a decrease 
14

in emission levels on a national level (70 FR 25195 and its accompanying 

technical support). 

5. FOR REDESIGNATIONS: 

 a. Is there a fully approved maintenance plan for the primary ambient air 

quality standards for at least 10 years as required by §175A of the Clean 

Air Act? 

 Not applicable. 

 b. Are contingency measures included? 

 Not applicable. 

6. Modeling information, if applicable, is required to support the proposed revision. 

EPA provided modeling information in the development and proposal of the CAIR 

programs; this modeling supported the inclusion of the State of Louisiana in 

CAIR. 

7. Evidence is included where necessary, that emission limitations are based on 

continuous emission reduction technology (e.g., add-on controls, 

industrial/process equipment designs, reformulated materials, etc.). 

Evidence of emission limitations based on CEM technology is not applicable. 

However, Louisiana remains subject to the CAIR NOX Annual and Ozone Season 

FIP requirements for monitoring and reporting at 40 CFR part 97, subparts HH 

and HHHH; which specify compliance with the requirements in 40 CFR part 75. 

The Louisiana SIP also incorporates by reference the federal requirements for the 

CAIR SO2 Trading Program, including the requirements for monitoring and 

reporting at 40 CFR part 96, subparts HHH, which require Part 75 CEM 

monitoring and recordkeeping.. 

8. Evidence is included indicating that a SIP revision contains emission limitations, 

work practice standards, and recordkeeping/reporting requirements to ensure 

stated emission levels. 

The State’s rules are clear about what entities are affected, the dates by which the 

LDEQ must submit the NOx annual and ozone season allocations to EPA, and the 

methods the LDEQ will use in calculating the allocations. The methodology for 

calculating an affected entity’s NOx annual and ozone season allowances is 
15

replicable because the methodology relies on the heat input and emissions 

determined from monitoring and recordkeeping requirements in 40 CFR part 75. 

The State’s rules also incorporate by reference the CAIR SO2 Trading Program 

requirements, which require monitoring and recordkeeping as specified in 40 

CFR Part 75. 

9. Compliance/enforcement strategies including how compliance will be determined 

in practice (including at what frequency). 

Not applicable for this abbreviated SIP revision. Determination of compliance is 

specified on a case-by-case basis in each individual permit. Each individual 

permit holder is required to hold sufficient allowances at the end of each control 

period to cover the total amount of NOX annual, NOX ozone season, and SO2 tons 

emitted. 

10. As appropriate, special economic and technological justifications are included per 

applicable EPA policies or an explanation why such justifications are not 

necessary should be included. For example, requests for alternative RACT may 

require such justification. 

These justifications are not applicable for this SIP revision. EPA provided 

economic and technical analyses in the development of the CAIR SIP and FIP 

programs. 

Exceptions (2.3) 

The EPA, for purposes of expediting the review of the plan, has adopted a procedure 

referred to as “parallel processing.” Parallel processing allows a State to submit the plan 

prior to actual adoption by the State and provides an opportunity for the State to consider 

EPA comments prior to submission of a final plan for final review and action. 

LDEQ did not request parallel processing of the July 1, 2009, SIP revision. 

The July 1, 2009, Louisiana SIP Submittal meets the completeness criteria at Part 

51, Appendix V, Sections 2.1 – 2.3. 
16

B. Evaluation of the July 1, 2009, Submittal with Respect to the Louisiana SIP 

Louisiana is subject to the requirements of 40 CFR 51.123(e) – (cc) for control of annual 

and ozone season NOX. Louisiana chose to adopt an abbreviated CAIR SIP revision 

satisfying the requirements of 40 CFR 51.123(p) and (ee). EPA fully approved the 

Louisiana abbreviated CAIR SIPs for annual and ozone season NOX on September 28, 

2007. See 72 FR 55064. The record for this decision includes EPA’s analysis of how the 

Louisiana CAIR NOX Annual and Ozone Season Abbreviated SIPs at LAC 33:III.506(A) 

and (B) satisfy all required elements of the CAA and CAIR. 

Louisiana is subject to the requirements of 40 CFR 51.124(e) – (o) for the control of 

annual sulfur dioxide emissions. Louisiana chose to adopt a full CAIR SIP revision 

incorporating by reference the federal requirements at 40 CFR Part 96, Subparts AAA 

through HHH. On July 20, 2007, EPA approved the Louisiana CAIR SO2 SIP as fully 

implementing the annual SO2 requirements of CAIR by requiring certain EGUs to 

participate in the EPA-administered CAIR cap-and-trade program for SO2 emissions. See 

72 FR 39741. The record for this decision includes EPA’s analysis of how the Louisiana 

CAIR SO2 Program at LAC 33:III.506(C) satisfies all required elements of the CAA and 

CAIR. 

The July 1, 2009, SIP submittal amends the existing SIP-approved CAIR NOX annual 

and ozone season allocation methodologies and the CAIR SO2 trading program, but did 

not replace any of the fundamental elements of the approved Louisiana CAIR programs. 

As such, EPA is not going to evaluate the basis for our original approvals of the CAIR 

NOX or SO2 programs in this TSD. Rather, this review focuses on the changes submitted 

on July 1, 2009, to the existing Louisiana SIP and whether these changes are consistent 

with the CAA and EPA’s regulations and guidance pertaining to CAIR. 

The following table provides a line item evaluation of each of the submitted revisions 

against the SIP-approved Louisiana CAIR programs. As evidenced in Table 1, the 

revisions adopted and submitted for the Louisiana CAIR NOX annual, NOX ozone season 

and SO2 programs are approvable. These revisions substantively revise the incorporation 

by reference dates to reflect the most recent federal changes. The NOX annual and NOX

ozone season allocation methodologies have also been substantively revised to update the 

allocation methodology based on comments and LDEQ’s own evaluation of the 

functionality of the original methodology. These allocation methodology revisions do not 

change the underlying timing or budget constraints imposed upon the LA programs by 

the FIPs at 40 CFR Part 97. Therefore, the revisions to the methodology are approvable. 
17 

Table 1: Analysis of July 1, 2009, Revisions to the Louisiana SIP 

SIP-approved by EPA on 7/20/2007 and 9/28/2007 As adopted by LDEQ on 9/20/2006 and amended 8/20/2007

Revisions adopted June 20, 2008 Submitted to EPA on July 1, 2009 

Section 506(A). Clean Air Interstate Rule Requirements—Nitrogen Oxide Annual Program. (A).Clean Air Interstate Rule (CAIR) Nitrogen Oxide (NOx) Annual 

Program. This Subsection is adopted in lieu of 40 CFR 97.141 and 97.142 as promulgated under the CAIR Federal Implementation Plan (FIP) NOx Annual Trading Program on April 28, 2006, at 71 FR 25328. All provisions of 40 CFR Part 97, Subparts AA - HH, continue to apply, with the exception of §97.141 (Timing Requirements for CAIR NOx Allowance Allocations) and §97.142 (CAIR NOx Allowance Allocations). The provisions of this Subsection state how the CAIR NOx annual allowances shall be allocated in accordance with this Section and 40 CFR 97.144(a). 

(A).Clean Air Interstate Rule (CAIR) Nitrogen Oxid

Program. This Subsection is adopted in lieu of 497.142 as promulgated under the CAIR Federal (FIP) NOx Annual Trading Program on April 28

255469 and as amended on October 19, 2007 at provisions of 40 CFR Part 97, Subparts AA - HHthe exception of §97.141 (Timing Requirements Allowance Allocations) and §97.142 (CAIR NOAllocations). The provisions of this Subsection annual allowances shall be allocated in accordan40 CFR 97.144(a). 

The revisions to LAC 33:III.506(A) are approvable. revisions updates the promulgation date of federal reconsistent with current federal CAIR regulations. 

1. Definitions. The terms used in Subsection A of this Section have the 

meaning given to them in the CAIR FIP (40 CFR Part 97 as promulgated on April 28, 2006), except for those terms defined herein. 

No change 

No comparable definition in SIP Certified Unit – an electricity generating unit that ha

LPSC or approved by a municipal authority but was approved by, December 31, 2004. This new definition is approvable. This non-substantSIP-approved definition of “certified unit” from the “certified unit or contract.” 

Certified Unit or Contract -- an electricity-generating unit or contract that has been certified by the LPSC or approved by a municipal authority but was not in operation on, or approved by, December 31, 2004. 

REPEALED Certified Unit or Contract -- an electricity-generating 

been certified by the LPSC or approved by a municipin operation on, or approved by, December 31, 2004The repeal of the SIP-approved definition of “Certifiapprovable. The LDEQ has revised the allocation me
18

SIP-approved by EPA on 7/20/2007 and 9/28/2007 As adopted by LDEQ on 9/20/2006 and amended 8/20/2007

Revisions adopted June 20, 2008 Submitted to EPA on July 1, 2009 

Annual NOX abbreviated SIP to not rely on the defin

– therefore the LDEQ is repealing an unused provisiregulations. Additionally, the SIP-approved portion opertaining to “certified unit” has been moved to its definition. 

 Department –- the Louisiana Department of Environmental Quality. No change No comparable definition in SIP Electric Public Utility – any person furnishing electri

state, including any electric cooperative transacting bprovided, however, that the term shall not be construgenerator who consumes any or all of the electric powgenerates or to any independent power producer who production of electric power and energy to an electridefined. The new definition “electric public utility” is approvnecessary to implement the Louisiana Annual NOX a

No comparable definition in SIP Fuel Types – for the allocation of allowances under L

types, include solid, gaseous, or liquid fuel. The folloto fuel types. 

i. Solid Fuel – includes, but is not limited to, c

Any amount of solid fuel that is combusted, combination with any other fuel during any the definition of solid fuel.

ii. Gaseous Fuel - includes, but is not limited 

coal gas, and blast furnace gas. Any mixture percent of gaseous fuel that is combusted wany control period shall meet the definition 

iii. Liquid Fuel – includes but is not limited to, 

and glycerols.

The new definition “fuel types” is approvable. This d

implement the Louisiana Annual NOX allocation met

LPSC -- the Louisiana Public Service Commission. No change LPSC or Municipal Certification -- the process under which the LPSC certifies, or the relevant municipal authority approves, an electricityLPSC or Municipal Certification -- the process under 

certifies, or the relevant municipal authority approve
19

SIP-approved by EPA on 7/20/2007 and 9/28/2007 As adopted by LDEQ on 9/20/2006 and amended 8/20/2007

Revisions adopted June 20, 2008 Submitted to EPA on July 1, 2009 

generating facility and/or all of its component units, additions, and up-rated or re-powered units as being in the public convenience and necessity. This process includes the certification or approval of long-term contracts that dedicate a portion of the electrical output of any generation facility to a utility unit. Long-term contracts are those contracts of at least one year in duration, provided that the municipality or utility unit expects to receive power under the contract within one year of the contract execution. 

conversion, or repowering of an electricity-generatin

public convenience and necessity. an electricity-geneof its component units, additions, and up-rated or re-in the public convenience and necessity. This procescertification or approval of long-term contracts that delectrical output of any generation facility to a utility contracts are those contracts of at least one year in dumunicipality or utility unit expects to receive power one year of the contract execution. The revisions to the definition “LPSC or Municipal Capprovable. This definition has been revised to accouallocation methodology. This revised definition is neLouisiana Annual NOX allocation methodology.

Municipal Authority -- a municipal corporation, public power authority, or other political subdivision including, but not limited to, the Louisiana Energy and Power Authority. 

No change. 

Non-Utility Unit -- an electricity-generating unit that has not been certified by the LPSC or approved by a municipal authority, and that does not have an effective and active long-term contract with a utility unit. This includes, but is not limited to, units owned by independent power producers (IPPs) that are the owners or operators of electricity-generating units that produce electricity for sale, and cogeneration units as defined in 40 CFR Part 97. 

No change 

Utility Unit -- a certified unit that is in operation, a previously-operational certified unit, or a non-utility unit that has an effective and active long-term contract with a utility unit. Long-term contracts are those contracts of at least one year in duration, provided that the municipality or utility unit expects to receive power under the contract within one year of the contract execution. 

Utility Unit -- a certified unit that is in operation, a pcertified unit, a non-utility unit purchased by an elect

non-utility unit that has an effective and active long-utility unit. Long-term contracts are those contracts duration, provided that the municipality or utility unipower under the contract within one year of the contrThe revisions to the definition “Utility Unit” are apphas been revised to account for the revised allocation revised definition is necessary to implement the Loui

allocation methodology.
20

SIP-approved by EPA on 7/20/2007 and 9/28/2007 As adopted by LDEQ on 9/20/2006 and amended 8/20/2007

Revisions adopted June 20, 2008 Submitted to EPA on July 1, 2009 

2. Allocation of CAIR NOx Annual Allowances. Total NOx 

allowances allocated per control period shall not be in excess of the CAIR NOx annual budget as found in 40 CFR 97.140 (35,512 tons per control period from 2009-2014 and 29,593 tons per control period thereafter). 

No change 

a. Non-Utility Units. For each CAIR non-utility unit, the NOx 

allowances shall be equal to the average of the actual NOx annual emissions of the three calendar years immediately preceding the year in which the control period allocations are submitted to the administrator. The actual NOx annual emissions as reported in the emission inventory required by LAC 33:III.919 shall be used, except that the allowances submitted in 2007 shall use the actual NOx emissions for calendar years 2002, 2003, and 2004. When data is not available in the emission inventory, data reported to the Federal Acid Rain Program shall be used. When actual reported NOx annual emissions data are available for only two of the three calendar years immediately preceding the deadline for submission of the control period allocations, the average of the actual reported NOx annual emissions data for those two years shall be used. When actual reported NOx annual emissions data are available for only one of the three calendar years, the actual reported NOx annual emissions data for that one year shall be used. When no actual reported NOx annual emissions data for any of the three calendar years are available, no allocations shall be made under this Paragraph. 

No change 

b. Certified Units. A certified unit subject to CAIR shall be 

allocated NOx allowances for the control period in which the unit will begin operation, and for each successive control period, for which no NOx allowances have been previously allocated until operating data are available for the three calendar years immediately preceding the deadline for submission of the control period allocations. Until a unit has three calendar years of operating data immediately preceding the allocation submittal deadline, the converted heat input as calculated in Clause A.2.b.i 

b. Certified Units. A certified and permitted 

shall be allocated NOx allowances for the cthe unit will begin operation, and for each period, for which no NOx allowances have allocated until operating data are available years immediately preceding the deadline fcontrol period allocations. Until a unit has operating data immediately preceding the adeadline, the converted heat input as calcul
21

SIP-approved by EPA on 7/20/2007 and 9/28/2007 As adopted by LDEQ on 9/20/2006 and amended 8/20/2007

Revisions adopted June 20, 2008 Submitted to EPA on July 1, 2009 

or ii of this Section shall be used to allocate allowances for the unit. The certified unit shall be treated as a utility unit for the purposes of this allocation, except that converted heat input shall be used instead of adjusted heat input. Converted heat input is calculated as follows. 

ii of this Section shall be used to allocate aunit. The certified unit shall be treated as a purposes of this allocation, except that conused instead of adjusted heat input. Repow

allocated in the same manner as certified uof certification. Converted heat input is cal

The revisions to LAC 33:III.506(A)(2)(b) are approvrevisions to the Louisiana Annual NOX allocation me

methodology consistent with LDEQ’s intent and stakCAIR abbreviated SIP requirements give states latituallocation methodology that best suits the needs of threvisions submitted by the LDEQ do not alter any of for assigning the allocations or submitting these allo

i. For a coal-fired unit, the hourly heat input for a specified 

calendar year shall equal the control period gross electrical output, including the capacity factor, of the generator(s) served by the unit multiplied by 7,900 BTU/KWh and divided by 1,000,000 BTU/MMBTU. The control period gross electrical output as stated in the documentation presented for the LPSC or municipal certification shall be used in this calculation. If a generator is served by two or more units, then the gross electrical output of the generator shall be attributed to each unit in proportion to the unit’s share of the total control period heat input of all the units for the year. 

i. For a solid fuel-fired coal-fired unit, the 

specified calendar year shall equal the coelectrical output, including the capacity fserved by the unit multiplied by 7,900 B1,000,000 BTU/MMBTU. The control poutput as stated in the documentation premunicipal certification shall be used in thgenerator is served by two or more unitsoutput of the generator shall be attributed proportion to the unit’s share of the total of all the units for the year. 

The revisions to LAC 33:III.506(A)(2)(b)(ii) are appsubstantive revisions to the Louisiana Annual NOX a

revise the methodology consistent with LDEQ’s intencomments. The CAIR abbreviated SIP requirements gstructuring an allocation methodology that best suits respective state. The revisions submitted by the LDEtiming requirements for assigning the allocations or allocations to EPA.
22

SIP-approved by EPA on 7/20/2007 and 9/28/2007 As adopted by LDEQ on 9/20/2006 and amended 8/20/2007

Revisions adopted June 20, 2008 Submitted to EPA on July 1, 2009 

ii. For a non-coal-fired unit, the hourly heat input for a 

specified calendar year shall equal the control period gross electrical output, including the capacity factor, of the generator(s) served by the unit multiplied by 6,675 BTU/KWh and divided by 1,000,000 BTU/MMBTU. The control period gross electrical output as stated in the documentation presented for the LPSC or municipal certification shall be used in this calculation. If a generator is served by two or more units, then the gross electrical output of the generator shall be attributed to each unit in proportion to the unit’s share of the total control period heat input of all the units for the year. 

ii. For a gaseous or liquid fuel-fired unit no

hourly heat input for a specified calendar control period gross electrical output, incfactor, of the generator(s) served by the uBTU/KWh and divided by 1,000,000 BTcontrol period gross electrical output as sdocumentation presented for the LPSC oshall be used in this calculation. If a genor more units, then the gross electrical oushall be attributed to each unit in proportthe total control period heat input of all t

The revisions to LAC 33:III.506(A)(2)(b)(iii) are appsubstantive revisions to the Louisiana Annual NOX a

revise the methodology consistent with LDEQ’s intencomments. The CAIR abbreviated SIP requirements gstructuring an allocation methodology that best suits respective state. The revisions submitted by the LDEtiming requirements for assigning the allocations or allocations to EPA.

c. Utility Units. The department shall allocate CAIR NOx 

allowances to each CAIR utility unit by multiplying the CAIR NOx budget for Louisiana (40 CFR 97.140), minus the allowances allocated under Subparagraph A.2.a of this Section, by the ratio of the adjusted baseline heat input of the CAIR utility unit and/or converted heat input of a certified unit to the total amount of adjusted baseline heat input and converted heat input of all CAIR utility units and certified units in the state and rounding to the nearest whole allowance. The adjusted baseline heat input (in MMBTU) used with respect to the CAIR NOx annual allowance for each CAIR utility unit shall be established as follows. 

c. Utility Units. The department shall allocate C

each CAIR utility unit by multiplying the CALouisiana (40 CFR 97.140), minus the allowaSubparagraph A.2.a of this Section, by the rabaseline heat input of the CAIR utility unit an

input of a certified unit to the total amount of input and converted heat input of all CAIR utunits in the state and rounding to the nearest wadjusted baseline heat input (in MMBTU) usCAIR NOx annual allowance for each CAIR established as follows. 

The revisions to LAC 33:III.506(A)(2)(c) are approvrevisions to the Louisiana Annual NOX allocation me

methodology consistent with LDEQ’s intent and stak
23

SIP-approved by EPA on 7/20/2007 and 9/28/2007 As adopted by LDEQ on 9/20/2006 and amended 8/20/2007

Revisions adopted June 20, 2008 Submitted to EPA on July 1, 2009 

CAIR abbreviated SIP requirements give states latituallocation methodology that best suits the needs of threvisions submitted by the LDEQ do not alter any of for assigning the allocations or submitting these allo

i. The average of the unit’s control period adjusted heat input 

for the three calendar years immediately preceding the deadline for submission of allocations to the administrator shall be used (except that the allocation submitted in 2007 shall use the average of the control period adjusted heat input for calendar years 2002, 2003, and 2004), with the control period adjusted heat input for each year calculated as follows. 

No change 

a) If the unit is coal-fired during a year, the unit’s control 

period heat input for that year shall be multiplied by 100 percent. 

b) If the unit is oil-fired during a year, the unit’s control 

period heat input for that year shall be multiplied by 60 percent. 

c) If the unit is not subject to Subclause A.2.c.i.(a) or (b) 

of this Section, the unit’s control period heat input for the year shall be multiplied by 40 percent. 

a) If the unit is solid fuel-fired coal-fi

unit’s control period heat input for multiplied by 100 percent. 

b) If the unit is liquid fuel-fired oil-f

unit’s control period heat input fomultiplied by 60 percent. 

c) NO CHANGE 

The revisions to LAC 33:III.506(A)(2)(c)(i) are apprsubstantive revisions to the Louisiana Annual NOX a

revise the methodology consistent with LDEQ’s intencomments. The CAIR abbreviated SIP requirements gstructuring an allocation methodology that best suits respective state. The revisions submitted by the LDEtiming requirements for assigning the allocations or allocations to EPA.

ii. A unit’s control period heat input, status as coal-fired or oilfired, and total tons of NOx emissions during a calendar 

year shall be determined in accordance with 40 CFR Part 97 and reported in accordance with LAC 33:III.919. 

ii. A unit’s control period heat input, fuel 

or oil-fired, and total tons of NOx emiyear shall be determined in accordance and reported in accordance with LAC 

The revisions to LAC 33:III.506(A)(2)(c)(ii) are apprsubstantive revisions to the Louisiana Annual NOX a
24

SIP-approved by EPA on 7/20/2007 and 9/28/2007 As adopted by LDEQ on 9/20/2006 and amended 8/20/2007

Revisions adopted June 20, 2008 Submitted to EPA on July 1, 2009 

revise the methodology consistent with LDEQ’s intencomments. The CAIR abbreviated SIP requirements gstructuring an allocation methodology that best suits respective state. The revisions submitted by the LDEtiming requirements for assigning the allocations or allocations to EPA.

3. Timing Requirements for CAIR NOx Annual Allowance Allocations NO CHANGE 

a. By April 30, 2007, the department shall submit to the 

administrator the CAIR NOx annual allowance allocations, in a format prescribed by the administrator and in accordance with Paragraph A.2 of this Section, for the control periods in 2009, 2010, and 2011. 

NO CHANGE 

b. By October 31, 2008, for the year 2012, and by October 31 of 

each year thereafter, the department shall submit to the administrator CAIR NOx annual allowance allocations, in a format prescribed by the administrator and in accordance with Paragraph A.2 of this Section, for the control period in the fourth year after the year of the applicable deadline for submission under this Section. 

NO CHANGE 

NO COMPARABLE PROVISION IN SIP 4. Reclassification of Units. When the ownership 

the unit is reclassified accordingly as a utility odepartment will allocate future allowances usinbeginning with the allocation submission deadldate of the unit reclassification. The electric pubthe department of the transfer of ownership. No without written notification from the electric pu

The new provisions at LAC 33:III.506(A)(4) are appsubstantive revisions to the Louisiana Annual NOX a

revise the methodology consistent with LDEQ’s intencomments. The CAIR abbreviated SIP requirements gstructuring an allocation methodology that best suits respective state. The revisions submitted by the LDEtiming requirements for assigning the allocations or allocations to EPA.
25

SIP-approved by EPA on 7/20/2007 and 9/28/2007 As adopted by LDEQ on 9/20/2006 and amended 8/20/2007

Revisions adopted June 20, 2008 Submitted to EPA on July 1, 2009 

Section 506(B). Clean Air Interstate Rule Requirements—Nitrogen Oxide Ozone Season Program. (B). Clean Air Interstate Rule (CAIR) Nitrogen Oxide (NOx) Ozone Season 

Program. This Subsection is adopted in lieu of 40 CFR 97.341 and 97.342 as promulgated under the CAIR Federal Implementation Plan (FIP) NOx Ozone Season Trading Program on April 28, 2006, at 71 FR 25328. All provisions of 40 CFR Part 97, Subparts AAAA – HHHH, continue to apply, with the exception of §97.341 (Timing Requirements for CAIR NOx Ozone Season Allowance Allocations) and §97.342 (CAIR NOx Ozone Season Allowance Allocations). The provisions of this Subsection state how the CAIR NOx ozone season allowances shall be allocated in accordance with this Section and 40 CFR 97.343(a). 

(B). Clean Air Interstate Rule (CAIR) Nitrogen Oxid

Program. This Subsection is adopted in lieu of 497.342 as promulgated under the CAIR Federal (FIP) NOx Ozone Season Trading Program on A25328-25469 and as amended on October 19, 20

59207. All provisions of 40 CFR Part 97, Subpacontinue to apply, with the exception of §97.341 for CAIR NOx Ozone Season Allowance Alloca(CAIR NOx Ozone Season Allowance Allocatiothis Subsection state how the CAIR NOx ozone be allocated in accordance with this Section and 

The revisions to LAC 33:III.506(B) are approvable. revisions update the promulgation date of federal reqconsistent with current federal CAIR regulations.

1. Definitions. The terms used in Subsection B of this Section have the 

meaning given to them in the CAIR FIP (40 CFR Part 97 as promulgated on April 28, 2006), and in Paragraph A.1 of this Section. 

NO CHANGE 

2. Allocation of CAIR NOx Ozone Season Allowances. Total NOx 

ozone season allowances allocated per control period shall not be in excess of the CAIR NOx ozone season budget as found in 40 CFR 97.340 (17,085 tons per control period from 2009-2014 and 14,238 tons per control period thereafter). 

NO CHANGE 

a. Non-Utility Units. For each CAIR non-utility unit, the NOx 

allowances shall be equal to the average of the actual NOx ozone season emissions of the three calendar years immediately preceding the year in which the control period allocations are submitted to the administrator. The actual NOx ozone season emissions as reported in the emission inventory required by LAC 33:III.919 shall be used, except that the allowances submitted in 2007 shall use the actual NOx emissions for calendar years 2002, 2003, and 2004 that were reported to the Federal Acid Rain Program. When data is not available in the 

NO CHANGE 
26

SIP-approved by EPA on 7/20/2007 and 9/28/2007 As adopted by LDEQ on 9/20/2006 and amended 8/20/2007

Revisions adopted June 20, 2008 Submitted to EPA on July 1, 2009 

emission inventory, data reported to the Federal Acid Rain Program shall be used. When actual reported NOx ozone season emissions data are available for only two of the three calendar years immediately preceding the deadline for submission of the control period allocations, the average of the actual reported NOx ozone season emissions data for those two years shall be used. When actual reported NOx ozone season emissions data are available for only one of the three calendar years, the actual reported NOx ozone season emissions data for that one year shall be used. When no actual reported NOx ozone season emissions data for any of the three calendar years are available, no allocations shall be made under this Paragraph. 

b. Certified Units. A certified unit subject to CAIR shall be 

allocated NOx allowances for the ozone season of the control period in which the unit will begin operation, and for each successive ozone season in a control period, for which no NOx allowances have been previously allocated until ozone season operating data are available for the three calendar years immediately preceding the deadline for submission of the control period allocations. Until a unit has three years of ozone season operating data preceding the allocation submittal deadline, the converted heat input as calculated in Clause B.2.b.i or ii of this Section shall be used to allocate ozone season allowances for the unit. The certified unit shall be treated as a utility unit for purposes of this allocation, except that ozone season converted heat input shall be used instead of ozone season adjusted heat input. Ozone season converted heat input 

is calculated as follows. 

b. Certified Units. A certified and permitted 

shall be allocated NOx allowances for the ocontrol period in which the unit will begin successive ozone season in a control periodallowances have been previously allocated operating data are available for the three caimmediately preceding the deadline for subperiod allocations. Until a unit has three yoperating data preceding the allocation subconverted heat input as calculated in ClausSection shall be used to allocate ozone seasunit. The certified unit shall be treated as a of this allocation, except that ozone season shall be used instead of ozone season adjusinput. Repowered utility units will be alloc

as certified units in the control period of ceconverted heat input is calculated as follow

The new provisions at LAC 33:III.506(B)(2)(b) are asubstantive revisions to the Louisiana Ozone Season 

methodology revise the methodology consistent with stakeholder comments. The CAIR abbreviated SIP relatitude in structuring an allocation methodology tha
27

SIP-approved by EPA on 7/20/2007 and 9/28/2007 As adopted by LDEQ on 9/20/2006 and amended 8/20/2007

Revisions adopted June 20, 2008 Submitted to EPA on July 1, 2009 

the respective state. The revisions submitted by the Lthe timing requirements for assigning the allocations allocations to EPA.

i. For a coal-fired unit, the hourly heat input for a specified 

calendar year shall equal the control period gross electrical output, including the capacity factor, of the generator(s) served by the unit multiplied by 7,900 BTU/KWh and divided by 1,000,000 BTU/MMBTU and multiplied by 5/12. The control period gross electrical output as stated in the documentation presented for the LPSC or municipal certification shall be used in this calculation. If a generator is served by two or more units, then the gross electrical output of the generator shall be attributed to each unit in proportion to the unit’s share of the total control period heat input of all the units for the specified ozone season. 

i. For a solid fuel-fired unit coal-fired un

for a specified calendar year shall equagross electrical output, including the cgenerator(s) served by the unit multipland divided by 1,000,000 BTU/MMBT5/12. If the control period gross electrunavailable, the hourly heat input for a shall equal the annual gross electrical capacity factor, of the generator(s) servmultiplied by 7,900 BTU/KWh and diBTU/MMBTU, and multiplied by 5/12gross electrical output as stated in the for the LPSC or municipal certification calculation. If a generator is served by the gross electrical output of the genereach unit in proportion to the unit’s shperiod heat input of all the units for the 

The new provisions at LAC 33:III.506(B)(2)(b)(i) are substantive revisions to the Louisiana Ozone Season 

methodology revise the methodology consistent with stakeholder comments. The CAIR abbreviated SIP relatitude in structuring an allocation methodology thathe respective state. The revisions submitted by the Lthe timing requirements for assigning the allocations allocations to EPA.

ii. For a non-coal-fired unit, the hourly heat input for a 

specified calendar year shall equal the control period gross electrical output, including the capacity factor, of the generator(s) served by the unit multiplied by 6,675 BTU/KWh and divided by 1,000,000 BTU/MMBTU and multiplied by 5/12. The control period gross electrical 

ii. For a gaseous or liquid fuel-fired unit 

hourly heat input for a specified calendcontrol period gross electrical output, ifactor, of the generator(s) served by th6,675 BTU/KWh and divided by 1,000multiplied by 5/12. If the control perio
28

SIP-approved by EPA on 7/20/2007 and 9/28/2007 As adopted by LDEQ on 9/20/2006 and amended 8/20/2007

Revisions adopted June 20, 2008 Submitted to EPA on July 1, 2009 

output as stated in the documentation presented for the LPSC or municipal certification shall be used in this calculation. If a generator is served by two or more units, then the gross electrical output of the generator shall be attributed to each unit in proportion to the unit’s share of the total control period heat input of all the units for the specified ozone season. 

is unavailable, the hourly heat input fo

year shall equal the annual gross electrthe capacity factor, of the generator(s) multiplied by 6,675 BTU/KWh and diBTU/MMBTU, and multiplied by 5/12gross electrical output as stated in the for the LPSC or municipal certification calculation. If a generator is served by the gross electrical output of the genereach unit in proportion to the unit’s shperiod heat input of all the units for the 

The new provisions at LAC 33:III.506(B)(2)(b)(ii) arsubstantive revisions to the Louisiana Ozone Season 

methodology revise the methodology consistent with stakeholder comments. The CAIR abbreviated SIP relatitude in structuring an allocation methodology thathe respective state. The revisions submitted by the Lthe timing requirements for assigning the allocations allocations to EPA.

c. Utility Units. The department shall allocate CAIR NOx ozone 

season allowances to each CAIR utility unit by multiplying the CAIR NOx ozone season budget for Louisiana (40 CFR 97.340), minus the allowances allocated under Subparagraph B.2.a of this Section, by the ratio of the ozone season adjusted baseline heat input of the CAIR utility unit and/or converted heat input of a certified unit to the total amount of ozone season adjusted baseline heat input and converted heat input of all CAIR utility units and certified units in the state and rounding to the nearest whole allowance. The ozone season adjusted baseline heat input (in MMBTU) used with respect to the CAIR 

NOx ozone season allowance for each CAIR utility unit shall be established as follows. 

c. Utility Units. The department shall allocate C

allowances to each CAIR utility unit by multozone season budget for Louisiana (40 CFR 9allowances allocated under Subparagraph B.2ratio of the ozone season adjusted baseline he

utility unit and/or converted heat input of a ceamount of ozone season adjusted baseline heheat input of all CAIR utility units and certifirounding to the nearest whole allowance. Thbaseline heat input (in MMBTU) used with reozone season allowance for each CAIR utility established as follows. 

The revisions at LAC 33:III.506(B)(2)(c)(ii) are apprsubstantive revisions to the Louisiana Ozone Season 

methodology revise the methodology consistent with 
29

SIP-approved by EPA on 7/20/2007 and 9/28/2007 As adopted by LDEQ on 9/20/2006 and amended 8/20/2007

Revisions adopted June 20, 2008 Submitted to EPA on July 1, 2009 

stakeholder comments. The CAIR abbreviated SIP relatitude in structuring an allocation methodology thathe respective state. The revisions submitted by the Lthe timing requirements for assigning the allocations allocations to EPA.

i. The average of the unit’s control period ozone season 

adjusted heat input for the three calendar years immediately preceding the deadline for submission of allocations to the administrator shall be used (except that the allocation submitted in 2007 shall use the average of the control period ozone season adjusted heat input for calendar years 2002, 2003, and 2004), with the control period ozone season adjusted heat input for each year calculated as follows. 

NO CHANGE 

a) If the unit is coal-fired during a year, the unit’s control 

period ozone season heat input for that year shall be multiplied by 100 percent. 

b) If the unit is oil-fired during a year, the unit’s control 

period ozone season heat input for that year shall be multiplied by 60 percent. 

c) If the unit is not subject to Subclause B.2.c.i.(a) or (b) 

of this Section, the unit’s control period ozone season heat input for the year shall be multiplied by 40 percent. 

a) If the unit is solid fuel-fired coal-fi

unit’s control period ozone season shall be multiplied by 100 percent. 

b) If the unit is liquid fuel-fired oil-f

unit’s control period ozone season shall be multiplied by 60 percent. 

c) NO CHANGE 

The revisions at LAC 33:III.506(B)(2)(c)(i) are apprsubstantive revisions to the Louisiana Ozone Season 

methodology revise the methodology consistent with stakeholder comments. The CAIR abbreviated SIP relatitude in structuring an allocation methodology thathe respective state. The revisions submitted by the Lthe timing requirements for assigning the allocations allocations to EPA.

ii. A unit’s control period ozone season heat input, status as 

coal-fired or oil-fired, and total tons of NOx ozone season emissions during a calendar year shall be determined in accordance with 40 CFR Part 97 and reported in accordance with LAC 33:III.919. 

ii. A unit’s control period ozone season h

status as coal-fired or oil-fired, and totseason emissions during a calendar yeaccordance with 40 CFR Part 97 and rwith LAC 33:III.919. 
30

SIP-approved by EPA on 7/20/2007 and 9/28/2007 As adopted by LDEQ on 9/20/2006 and amended 8/20/2007

Revisions adopted June 20, 2008 Submitted to EPA on July 1, 2009 

The revisions at LAC 33:III.506(B)(2)(c)(ii) are apprsubstantive revisions to the Louisiana Ozone Season 

methodology revise the methodology consistent with stakeholder comments. The CAIR abbreviated SIP relatitude in structuring an allocation methodology thathe respective state. The revisions submitted by the Lthe timing requirements for assigning the allocations allocations to EPA.

3. Timing Requirements for CAIR NOx Ozone Season Allowance 

Allocations 

NO CHANGE 

a. By April 30, 2007, the department shall submit to the 

administrator the CAIR NOx ozone season allowance allocations, in a format prescribed by the administrator and in accordance with Paragraph B.2 of this Section, for the control periods in 2009, 2010, and 2011. 

NO CHANGE 

b. By October 31, 2008, for the year 2012, and by October 31 of 

each year thereafter, the department shall submit to the administrator the CAIR NOx ozone season allowance allocations, in a format prescribed by the administrator and in accordance with Paragraph B.2 of this Section, for the control period in the fourth year after the year of the applicable deadline for submission under this Section. 

NO CHANGE 

Section 506(C). Clean Air Interstate Rule Requirements—Annual Sulfur Dioxide. (C). Annual Sulfur Dioxide. Except as specified in this Section, the Federal 

SO2 Model Rule, published in the Code of Federal Regulations at 40 

CFR Part 96, July 1, 2005, and as revised at 70 FR 25162-25405, May 12, 2005, and 71 FR 25328-25469, April 28, 2006, is hereby incorporated by reference, except for Subpart III –- CAIR SO2 Opt-in Units and all references to opt-in units. 

(C). Annual Sulfur Dioxide. Except as specified in t

SO2 Model Rule, published in the Code of Feder

CFR Part 96, July 1, 2007 2005, and as revised a

October 19, 2007 70 FR 25162-25405, May 12, 25469, April 28, 2006, is hereby incorporated by Subpart III –- CAIR SO2 Opt-in Units and all re

The substantive revisions to LAC 33:III.506(C) are arevisions update the incorporation by reference of th

program to be consistent with current federal require

Section 506(D). Documentation. 
31

SIP-approved by EPA on 7/20/2007 and 9/28/2007 As adopted by LDEQ on 9/20/2006 and amended 8/20/2007

Revisions adopted June 20, 2008 Submitted to EPA on July 1, 2009 

(D).Copies of documents incorporated by reference in this Section may be 

obtained from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20242 or their website, www.gpoaccess.gov/cfr/index.html; from the Department of Environmental Quality, Office of Environmental Services, Air Permits Division; or from a public library. 

NO CHANGE 

Section 506(E). Modifications or Exceptions. (E). Modifications or Exceptions. A copy of each report or notice or of any 

other documentation required by the referenced regulations (i.e., 40 CFR Part 96) to be provided to “the Administrator” shall be provided to the Office of Environmental Services, Air Permits Division, by the person required to make the submission to “the Administrator.” 

NO CHANGE 
32 

C. Evaluation of the July 1, 2009, Louisiana SIP revision with respect to section 

110(l) of the Clean Air Act? 

Section 110(l) of the Clean Air Act states: 

Each revision to an implementation plan submitted by a State under this Act shall 

be adopted by such State after reasonable notice and public hearing. The 

Administrator shall not approve a revision of a plan if the revision would 

interfere with any applicable requirement concerning attainment and reasonable 

further progress (as defined in section 171), or any other applicable requirement 

of this Act. 

EPA approved the Louisiana CAIR SO2 and NOX trading programs in separate actions on 

July 20, 2007, and September 28, 2007. The July 1, 2009, revisions to the Louisiana SIP 

amend the existing SIP-approved CAIR programs. EPA developed the CAIR in an effort 

to reduce the transport of SO2 and NOX emissions that contribute significantly to 

nonattainment of the 8-hour ozone and PM2.5 NAAQS. During the development process, 

EPA demonstrated through modeling the projected ozone and PM2.5 nonattainment areas 

in 2010, 2015, and 2020, that CAIR will not interfere with attainment of the standards; 

rather this modeling demonstrated that CAIR in concert with other federally approved 

control measures will actually bring existing areas of ozone and PM2.5 nonattainment into 

attainment with the ozone and PM2.5 NAAQS.2 Additionally, sources subject to CAIR 

are still bound by their permit conditions under New Source Review and Title V. These 

sources can participate in the cap-and-trade aspects of the CAIR but cannot exceed their 

permit limits for NOX. The Louisiana New Source Review and Title V permitting 

programs are designed such that the issuance of a permit will not interfere with existing 

SIP requirements or with the attainment of a NAAQS. As long as the adopted rules are 

consistent with the SIP development requirements at 40 CFR Part 51 and the specific 

CAIR program requirements, then EPA finds that the program will not interfere with 

attainment or reasonable further progress or any other applicable requirement of the Act. 

 

 

2

 Please see EPA’s analysis titled “Contributions of CAIR/CAMR/CAVR to NAAQS Attainment: Focus on 

Control Technologies and Emission Reductions in the Power Sector” prepared by the Office of Air and 

Radiation on April 18, 2006. 
33

V. Conclusion 

The technical analysis provided in the preceding sections has evaluated the revisions to 

the Louisiana CAIR NOX Annual, NOX Ozone Season, and SO2 programs adopted on 

June 20, 2008, and submitted as a revision to the Louisiana SIP on July 1, 2009. EPA’s 

evaluation demonstrates that the LDEQ has appropriately revised the allocation 

methodologies for the NOX Annual and Ozone Season programs and appropriately 

updated the incorporation by reference date of the SO2 program. It is recommended that 

EPA propose approval of the July 1, 2009 SIP revision. Because these are 

noncontroversial revisions, EPA should consider a direct final approval.