### BOBBY JINDAL GOVERNOR 

### HAROLD LEGGETT, 

### PH.D. SECRETARY 

# gtate of 

# Xouiriiana

DEPARTMENT OFENVIRONMENTAL QUALITY 

## OFFICE OF THESECRETARY

July 1,2009

Mr. Larry Starfield Administrator, 

### 6RA US EPA Region 

### 6 1445Ross Avenue, Suite 1200 Dallas, TX 75202-2733


## RE: Clean Air Interstate Rule (CAIR)IVOx Trading Programs State Implementation Plan (SIP) Revision

Dear Mr. Starfield:
The State of Louisiana has approved and is submitting the Clean Air Interstate Rule (CAIR) lVOx 

### Trading Programs final SIP revision.
Please contact the Environmental Planning staff through Michelle Morgan, (225) 219-3529, if you have questions.

c: Mr. Guy Donaldson, Section Chief
Enclosures

# Louisiana State Implementation Plan Revision

Clean

# Ax Interstate Rule (CAIR) 

# NOx TrahngPrograms

Submitted to:
EPA Region 

### 6 1445Ross Avenue, Suite 1200 Dallas, 

## TX 75202-2733
Final June 2009

## OVERVIEW

The Environmental Protection Agency (EPA) promulgated the Clean Air Interstate Rule (CAIR)
on March 10, 2005 (70 FR 25162) to reduce emissions of sulfur dioxide (SO2) and nitrogen oxides (NO,) from electrical generating units (EGUs) through a cap and trade approach.
On April 28, 2006, EPA promulgated a Federal Implementation Plan (FIP) for CAIR (71 FR 25328). Within the FIP provisions for the Annual NO, program and the Ozone Season NOx, program states are provided the option to submit abbreviated State Implementation Plans (SIPS) to meet CAIR requirements (see 40 CFR $51.123 Cp) 

### and 51.123(ee) respectively). Louisiana will remain under the provisions of the FIP for the CAIR Annual NO, and Ozone SeasonNOx Trading Programs with the exception of those provisions related toNOxallowance allocations.
Louisiana submitted an abbreviated SIP for the Annual and Ozone season NO, allocations method on August 20, 2007; the SIP was approved by EPA on September 28, 2007 (72 FR 55064). This abbreviated SIP revision includesthe following:
1. rule AQ 292 which updates certain citations to all federal revisions to CAIR; 2. revises and adds definitions; 3. adds provisions for petroleum coke-fired EGUs; 4. reclassification of units from utility to non-utilityand vice versa; and 5. adds language to cease allocation ofNOxallowances to certified units that are not orhave not been built.
In accordance with La. R.S. 49:950 et seq., and to comply with 40 CFR 51.285 Public Notification, the LDEQ published in the 

## Louisiana Register on June 20, 2008, a notice seeking comment on this SIP revision. A public hearing concerning this SIP revision was held at 1:30 p.m. on July 29, 2008, in the GalvezBuilding, Oliver Pollock Room Cl11,at 602N. Fifth Street, Baton Rouge, Louisiana. Interested parties were invited to submit written or oral comments on the SIP at that time. The comment period closed at 4:30 p.m. on August 5, 2008. A copy ofthe notices, hearing transcript, comments, and comment summary responses and responses to comments are included in Appendix A. The state provisions in the rule will be in lieu of40 CFR 96, Subpart EE -

### CAIRNOxAllowance Allocations ($96.142) and Subpart EEEE - 

### CAIR NOx Ozone Season Allowance Allocations ($96.341 and $96.342). The LDEQ published in the 

## Louisiana Register on March 20, 2008 the Notice of Intent for the rule. A public hearing conceming this rule was held at 1:30 p.m. on April 24, 2008, in the Galvez Building, Oliver Pollock Room C111, at 602 N. 

### Fifth Street,Baton

Clean Air InterstateRule (CAIR)NO, 

### Trading Programs SIPRevision Final June 2009

### Rouge, Louisiana. Interested parties were invitedto submit written or oral commentson the rule at that time. The comment period closed at 4:30 p.m. on May 1, 2008. A copy of the notices, hearing transcripts, comments and comment summary responses and responses to comments are included in Appendix A. The final rule with technical amendments was published on June 20, 2008 in the Louisiana Register 

### and was effective upon publication. A copy of the final rule is included in Appendix 

## B.

Clean Air Interstate Rule (CAIR) NO, 

### Trading Programs SIPRevision Final June 2009

# APPENDIX A
- 

# PUBLICNOTIFICATIONGeneral Counse

NOTICE OFINTENT 

# / Department of Environmental Quality Office of the Secretary Legal Affairs Division
Clean Air lnterstate Rule (LAC 33:111.506XAQ292) Under the authority of the Environmental Quality Act, R.S. 30:2001 et seq., and in accordance with the provisions ofthe Administrative Procedure Act, R.S. 49:950 et seq., the secretary gives notice that rulemaking procedures have been initiated to amend the Air regulations, LAC 33:111.506 (Log #AQ292).

This revision for the Clean Air lnterstate Rule (CAN) nitrogen oxide (NO,) trading programs allocation metholodogy addresses the following issues: updates citations to all federal revisions to the CAIR; revises and adds definitions; provides that allowances for petroleum coke-fired electrical generating units (EGUs) are to be calculated using the same methodology 

### as allowances for coal-fired EGUs; adds a provision for repowered utility units; adds a provision for the reclassification of units from utility to non-utility and vice versa; and adds language to cease allocation ofNO, allowances to certified units that are not built (If the unit does not commence operations by a certain date, then the permit becomes void. Once the permit is void, no additional allocations will be made.). EPA promulgated a CAIR Federal Implementation Plan (FIP) on April 28, 2006, which allows a state to allocate CAlR NO, allowances in a manner that is different from the FIP. The initial state allocation rule was promulgated on August 20, 2007. Since that time the department has determined that some operating circumstances were inadvertently omitted, and these are included in this revision. In this rulemaking the department is also updating the regulations to include the latest changes to the federal program.This rule is also being proposed as a revision to the air quality 

### CAIR State Implementation Plan (SIP). The basis and rationale for this proposed rule are to improve air quality through the reduction of intrastate and interstate emissions of NO, from electrical generating units. This proposed rule meets an exception listed in R.S. 30:2019(D)(2) and R.S. 49:953(6)(3); therefore, no report regarding environmentalhealth benefits and social/economic costs is required. Title 33 ENVIRONMENTAL QUALITY Part 111. Air Chapter 5. Permit Procedures 4506. Clean Air InterstateRule Requirements

A. Clean Air lnterstate Rule (CAIR) Nitrogen Oxide (NO,) Annual Program. This Subsection isadopted in lieu of 40 CFR 97.141 and 97.142 as promulgated under the CAIR Federal Implementation Plan (FIP) NO, Annual Trading Program on April 28,2006, at 71 FR 25328 and as'amended on October 19, 2007, at 72 FR 59190. All provisions of 40 CFR Part 97, Subparts AA-HH, continue to apply, with the exception of 597.14 1 (Timing Requirements for CAIR NO, Allowance Allocations) and 597.142 (CAIR

### NO, Allowance Allocations). The provisions ofthis Subsection state how'the CAIR NO, annual allowances shall be allocated in accordance with this Section and 40 CFR 97.144(a). 1. Definitions. The terms used in SubsectionAof 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. Certified Unit-an electricity-generating unit 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. Certified Unit or Contract-Repealed.
111 Electric Public Utility-any person furnishing electric service within this state, including any electric cooperative transacting business in this state, provided, however, that the term shall not be construed to apply to co-generators who consume any or all of the electric power and energy generated by such facility or independent power producers who sell the entire production of electric power and energy generated by such facility to an electric public utility a s herein defined. Fuel Qpes-for the allocation of allowances under Louisiana's program, fuel types include solid, gaseous, or liquid fuel.

### Thefollowing definitions apply tofuel types. i. SolidFuel-includes, but is not limitedto, coal and petroleum coke. Any amount of solid fuel that is combusted, alone, in series, or 

### in combinationwith any other fuel, during any control period shall meet the definition of solid fuel. ii. Gaseous Fuel-includes, but is not limited to, natural gas, propane, coal 

### gas, and blast furnace gas. Any mixture containing at least 50 percent of gaseous fuel that is combusted with any liquid fuel during any control period shall meet the definition of gaseous fuel. iii. Liquid Fuel-includes, but is not limited to, petroleum-based oils and glycerol.
**I LPSC or Municipal Certipcation-the process under which the LPSC certifies, orthe relevant municipal authority approves, construction, conversion, or repowering of an electricity-generating unit as being in the public convenience and necessity. process includes the certification or approval of long-term contractsthat 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.
I** Utility Unit-a certified unit that is in operation, a previously-operational certified unit, a non-utility unit purchased by an electric public utility, 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
Louisiana Register Vol. 34, No. 03 March 20, 2008 490utility unit expects to receive power under the contract within oneyear of the contract execution. 2. 

## - 2.a.


## ...

b. Certified Units. A certified and permitted unit subject to CAIR shall be allocated NO, allowances for the control period in which the unit will begin operation, and for each successive control period, for which no NO, 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 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. Repowered utility units will be allocated 

### in the same manner as certified units in the control period of certification. Converted heat input is calculated

### as follows. i. For a solid fuel-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 BTUlKWh and divided by 1,000,000 BTUhlMBTU. The control period gross electrical output as stated in the documentation presented for the LPSC or municipal certification shall be used in this calculation. Ifa generato; 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 heatinput of all the units forthe year. ii. For a gaseous or liquid fuel-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 BTUKWh and divided by 1,000,000BTUIMMBTU. 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 ofthe total control period heat input of all the units forthe year. c. Utility Units. The department shall allocate CAIR NO, allowances to each CAIR utility unit by multiplying the CAIR NO, 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 heat input of the CAIR utility unit to the total amount of adjusted 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 heat input (in MMBTU) used with respect to the CAIR NO, annual allowance for each CAIR utility unit shall be establishedasfollows. 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. (a). If the unit is solid fuel-fired during a year, the unit's control period heat input for that year shall be multipliedby 100 percent. (b). If the unit is liquid fuel-fired during a year, the unit's control period heat input for that year shall be multipliedby 60percent. (c). If the unit is not subject to Subclause A.2.c.i.(a) or (b) ofthis Section, the unit's controlperiod heat input for the year shall be multiplied by 40 percent. ii. A unit's control period heat input, fuel type, and total tons ofNO, emissions during a calendaryear shall be determined 

### in accordance with 40 CFR Part 97 and reported in accordance with LAC 33:III.9 19. 3.

## - 3.b


## .... 4. Reclassification of Units. When the ownershipof a unit is transferred, the unit is reclassified accordingly as a utility or non-utility unit. The department will allocate future allowances, beginning with the next allocation period, using the new classification. The electric public utility must notify the department of the transfer ofownership. No changes will be made without written notification from the electric public utility.

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) NO, Ozone Season Trading Program on April 28,2006, at 71 FR 25328 and as amended on October 19, 2007, at 72 FR 59190.All provisions of 40 CFR Part 97, Subparts AAAA-HHHH, continue to apply, with the exception of $97.341 (Timing Requirements for CAIR NO, Ozone Season Allowance Allocations) and 997.342 (CAIR NO, Ozone Season Allowance Allocations). The provisions of this Subsection state how the CAIR NO, ozone season atlowances shall be allocated in accordance with this Section and 40 CFR 97.343(a). I. -2.a....

b. Certified Units. A certified and permitted unit subject to CAIR shall be allocated NO, 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 NO, 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 ofthis 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. Repowered utility units willbe allocated in the same manner 

### as certified units in the cone01period of certification. Ozone season converted heat input is calculated

### as foilows. i. For a solid fuel-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


### 491 LouisianaRegister Vo1. 34, No. 03 March 20, 2008BTUKWh and divided by 1,000,000BTUMMBTU, or the annual gross electrical output, including the capacity factor, of the generator(s) served by the unit multiplied by 7,900 BTUKWh and divided by 1,000,000 BTURVIMBTU, 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. ii. For a gaseous or liquid fuel-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 BTUIKWh and divided by 1,000,000BTU/MMBTU, or the annual gross electrical output, including the capacity factor, of the generator(s) served by the unit multiplied by 7,900 BTUKWh and divided by 1,000,000BTUMMBTU, 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. c. Utility Units. The department shall allocate CAIR NO, ozone season allowances to each CAIR utility unit by multiplying the CAIR NO, ozone season budget for Louisiana (40 CFR 97.340), minus the allowances allocated under Subparagraph B.2.a ofthis Section,by the ratio of the ozone season adjusted heat input of the CAIR utility unit to the total amount of ozone season adjusted heat input and converted heat input of all CAIR utility units and cemfied units in the state and rounding to the nearest whole allowance. The ozone season adjusted heat input (in MMBTU) used with respect to the CAIR NO, ozone season allowance for each CAlR utility unit shall be established as follows. 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 tothe administrator shall be used (except that the allocation submitt'ed 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. (a). If the unit is solid fuel-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 liquid fuel-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.Z.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.

Louisiana Register Vol. 34, No. 03 March 20, 2008 ii. Aunit's conDol period ozone season heat input, hel type, and total tons of NO. ozone season emissions during a calendar year shall be determined in accordance with 40 CFR Part 97 and reported in accordance with LAC 33:111.919. 3. 

### - 3.b


## .... 4. Reclassification of Units. When the ownership of a unit is transferred, the unit is reclassified accordingly as a utility or non-utility unit. The department will allocate future allowances, beginning with the next allocation period, using the new classification. The electric public utility must notify the department ofthe transfer of ownership. No changes will be made without written notification from the electric public utility.

C. Annual Sulfur Dioxide. Except as specified in this Section, the Federal SO2Model Rule, published in the Code 

### of Federal Regulations at 40 CFR Part 96, July 1,2006, and as revised at 72 FR 59190-59207, October 19, 2007, is hereby incorporated by reference, except for Subpart IIICAIR SOzOpt-in Units and all referencesto opt-in units.



### D.-E.



## ... AUTHORITYNOTE: Promulgated in accordance with R.S. 30:2054.

HISTORICALNOTE: Promulgated by the Department of Environmental Quality, Office of the Secretary, Legal Affairs Division, LR 32:1597 (September 2006), amended LR 33:1622 (August2007), 

### LR 33:2083 (October2007), 

### LR 34:

This proposed rule has no known impact on family formation, stability, and autonomy as described in 

### R.S. 49:972.

A public hearing will be held on April 24, 2008, at 1:30 p.m. in the Galvez Building, Oliver Pollock Conference Room, 602 N. Fifth Street, Baton Rouge, LA 70802. The hearing will also be for the revision to the CAlR SIP to incorporate this proposedrule. Interested persons are invited to attend and submit oral comments on the proposed amendments. Should individuals with a disability need 

### an accommodation in order to participate, contact Judith A. Schuerman, Ph.D., at the address given below or at (225) 219-3550. Parking in the Galvez Garage is free with a validated parking ticket.

All interested persons are invited to submit written comments on the proposed regulation. Persons commenting should reference this proposed regulation by AQ292. Such comments must be received no later than May 1, 2008, at 4:30 p.m., and should be sent to Judith A. Schuerman,Ph.D., Office of the Secretary, Legal Affairs Division, Box 4302, Baton Rouge, LA 70821-4302 or to 

### fax (225) 219-3582 or by e-mail to judith.schuerman@la.gov. Copies of this proposed regulation can be purchased by contacting the DEQ Public Records Center at (225) 219-3168. Check or money order is required in advance for each copy ofAQ292. This regulation is available on the Internet at 

### www.deq.louisiana.gov/portaVtabid/1669/defauIt,aspx.

This proposed regulation is available for inspection at the following DEQ ofice locations from 8 a.m.until 4:30 p.m.: 602

### N. Fifth Street, Baton Rouge, LA 70802; 1823 Highway 546, West Monroe, LA 71292; State Ofice Building, 1525 Fairfield Avenue, Shreveport, LA 71I01 ; 1301 Gadwall Street, Lake Charles, LA 70615; 1 11 New Center Drive,Lafayette, 

### LA 70508; 110 Barataria Street, Lockport, 

### LA 70374; 645

### N. Lotus Drive, Suite C, Mandeville, LA 7047

### I.
Herman Robinson, CPM Executive Counsel 

### FISCAL AND ECONOMIC IMPACT STATEMENT FOR ADMINISTRATIVE RULES RULE TITLE: CleanAir Interstate Rule

I. ESlTMA7ED IMPLEMENTATION COSTS (SAVINGS) 

### 'r0 STATEORLOCALGOVEIUWDiTUNlTS (Summary) Implementation costs or savings are expected to be very minimal from promulgation of this revision. There may be increased or decreased utility costs to state or local governmentsas electrical ratepayers,as aresult of lhis rule, but only when an affected facility starts to operate in one of the added operating circumstances, such as repowering, combusting petroleum coke, losing certification because a new project was not completed, or reclassification from regulated to nonregulated and vice versa, There are six municipalities in Louisiana that own affected electrical generatingunits (EGUs). The department anticipates that very few units will changetheir modes of operation and that the effects of those few units that do may cancel out each other. There are so many variablesand unknownsthat no impact can be estimated,but the department expectsthe overall impactto be minimal. 

### U. ESlTMATED

### EFFECTON

### REVENUECOLLECTIONSOFSTATE OR

### LOCALGOWXNMENTALUNlTS (Sumrrwy) Impact on revenue collections will be minimal to state or local governmental units that own affected units. These governmental units may pass on the costs or savings to their electrical ratepayers. tII. ESTTMATED COSTS AND/OR E(X,NOMIC BENEFl73 TO DIREnY AFFEClED PERSONS OR NONGOWXNMENTAL CROUPS(Summary) Affected regulated facilities that have the ability and are permitted to combust petroleum coke will get some additional NO, allowances due to the increase in the fuel adjustment factor in the methodology, tending to increase their income by increasing the number of NO, allowances allocated by the department.This amount may be significant. Seldom are these affected facilities singly owned, and this increaseof allowances will cause a decrease to other facilities, some owned by the same company with the petrbleum coke combustion. Affectedrepowered facilities will tend to receive additional allowances, th"s increasing their income. This amount may be significant. The estimate of the amount cannot be made because it will depend upon the repowered unit's certified heat output, which is not known but will be certified by the LouisianaPublic Service Commission. Once again, seldom are these affected facilities singly owned, and this increase of allowanccs will cause a decrease to other facilities, -some owned by the samecompany with the repowered unit. Affected facilities that are reclassified from regulated to nonregulated, and vice versa, may receive more, or less, NO, allowances than before. The amount may be significant. Typically, nonregulated units receive only sufficient NO, allowances to operate, where regulated units receive less than needed. However, regulated facilitieshave the ability to put on control equipmentand receivean excess of allowances. Affected certified units that are not built would no longer receive allocations.Allocations will cease when the department is informed that a previously-certified unit will not be constructed. 

### N.ESTIMATEDEm ON COMPETITIONAND EMPLOYMENT (Summary) There will be little or no effect on competition or employment Herman Robinson, CPM Executive Counsel 0803#049 H. GordonMonk Legislative Fiscal Officer Legislative Fiscal Office

I 

## \ NOTICE OFINTENT 

# /



# \ Department of Environmental Quality 

### Oflice ofthe Secretary 

### . I 

### Legal Affairs Division by Reference-2007 V.3099; IX.2301,4901, XV. 1517)(MM007ft)

-1X and XI-XIII, 302.4, 302.6(e), 355.40(a)( and Parts 417-471, July 

### 1,

n 10 

### CFR Part

C

ust be adopted into the LAC. This mlem 

# - to maintain delegation, authorization,

C

Louisiana Register Vol.34, No. 03 March20,2008

w

## RECEIVED 

## MAR 

## 2 0 

# '%:;d Acadianars Daily Newspaper LDEQ/OSECILAD RECU~TIONDEVELOP~~ ~'NT S[Crl~jq 

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### D. weatherspoon Account NO.: ~DEQRD 

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### P. 

### 0. 

### BOX 4302 "To Insure proper credit please referto your accountnumber 

### Baton Rouge, LA 70821-4302 andlorad numberwhen rnak~ng payment Rem~ttance address P.O. Box 3268, Lafayette, LA 70502-3268 I, ROSE PENFOLD, do solemnly swear that 

### I am the LEGAL CLERK of THE ADVERTISER, a newspaper printed and published at Lafayette, inthe Par,ish of Lafayette, State of Louisiana, and that from my personal knowledge and reference to the files of said publication, the advertisement of 

### NOTICE 

### OF INTENT Department of Envirbnme'ntal Quality Office of the Secretary Legal Affairs Division Clean Air Interstate 

### Rule (

### LAC 33: 

### 111.5061 (~6292) ' 

# ~ 

# - was published,in 

## THE ADVERTISER on the following dates: I 

# 1 *Friday, March 14, 

### 2008

Sworn to 

### and subscribed before me this 18th 

### day of March, 2008.955239 NOTICE OF INTENT

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--U.-". 

## ..-- I&' ' I 

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# PROOF OFPUBLICATION

The hereto attached notice 

### was published in 

### THE ADVOCATE,
a daily newspaper of general circulation

pub1ished in Baton Rouge, Louisiana, and the official Journal of the State of Louisiana,

the City of Baton Rouge, and the Parish of East Baton Rouge, in the following issues:



### ?"$an A.Bush, Public Notices Clerk

Sworn 

### and subscribed before me by the person whose signature appears above: 

### March 13,2008

wyc-C Pegeen *ley, Notary 

# u, MY Conunission Expires : Indef Baton Rouge, Louisiana



## RECEIVED



## MAR 

# 38 

## 2006

LDEQIOSECIUD REGULATION DEVELOPMENT SECTION ~~~i%nPk~~23'~&11t~ Otfic of S re ary ~egJ ~Ars %don Clean Air Interstate Rule (LAC 33:111.506) (AQ292) Under the authority of the Environmental Qual Act R.S. 30.2001et seq a% ir, kcordaicewlththipro- vtbo of the Admt?Istrative Procedure AC~ R.L 49:950 et seq.. the 

## sek.fnilves notice that have been ~n?i~~t!~~% amend the Alr regustbn LAC 33:111.506 (Log #A9293:

~hlsevlslon tor the Clean dr Interst te Rule (CAIR) nitmaen.oxade (NO?)

mlsproposed rul hps no known lmpa t on famll formation st glllty a autonom 'as aescrtbed In R.s.49:931.

DEQ

## - OSECILAD REG 3838388 REMENDERWEATHERSPOON PO BOX 4302 BATON ROUGE A publlc h arlng wlll be held pIfdip.n. on Apri In 24

th'e 20DB Ga vez at Oliver Poi/oc ~onfereAce Room 602 

## X. Lfih Street I3 tori Rouge

70802. he aearjn w~ll Is0 be for the revlsinto t4e CAIR SIP to Incorporate th~s proposed rule. lnt~repd prsons are nv te to a end and s b mlt oral comments on

## tXe'

tlckeL

Bulldlng. 525 Fairfield Avenue Skrevep rt LA 71101. 50 ~adwai street Lake darks LA 706l&l\f New ceker Lafa ette. LA 70508. lld ~arararia Street. Lockprt. LA 70374.645N. ~otus rlve Suite C: Mandeville, LA 70471.

# AFFIDAVIT OFPUBLICATION RECEIVED 

## MAR 

## I ,4 ;!l)l~ti

LDEQIOStl:/lfiD I REGULATIONDEVELUPMI:NTSECTION 

# ,

L (

### A Correct Copy 

### ofPublication ) 

# I I, Harold Constance. ClassifiedSales Manager

-.NOTICE OF INTENT Department of EnvironmentalQuality Officeof the Secretary Liegal Aflaln Dlvlslon Clean Air lniirstate Rule (LAC33:111.506) (4Q291J'2i.; Undei iiiaulGiii'f5' of 

# F:iIf+ :En&Q!W$s! 30:2001:et seq:;:~ind: Inaccordance with the Provlslons of the Ad. mlnlStratlve.Pr.ocedure Act,'R.S.'W195O e!,seq., the secretary gives nbtlce that:. .riilemaklng procedurris havebeen nitlated to,amehdthe Alr regulations, LAC 33:111.506 XAQ292). (Log
~hlS revlslon for the Clean Air Interstate Rule (CAIR) nitro n oxide (~0x1 tra6g programs allocation metholodog addresses the follow& Issues updates cltatjbns to all federal revislonlto the CAIR; revlses and adds deflnltlow pr6 vldes that allowances for petroleum cokeflred electrlcat gener- atlng units (EGUs) are to be calculated uslng the kame methodolog as allowances for coa? flred EGUs: adds a provlslon for re wered utltlty unlts; ad% a provision for the reclasslflcation of unlts from utlllt), fo non-utlllty

# . and +Ice versa; ancI?>adds J p"* yge to ce&e ai~da; Ion of NOx allowances to certlfled unlts that are not bullt (If the unlt does 'not cbm- rnence operatlons b a certain date, then Yhe permlt becofies 'viild. Once the permit Is vold no additional allocat~dns will ti6 dade ) EPA promul ated a CAlR ~edera?Im le mentation Plan (&P; on Aprll 28,2006 wh~ch allows a state fo. allo- cate CAlR NOx allow- ances in a manner that Is dlfterent from the FIP. The ~nitlal state allocatlon rule was promulgated on August 20, 2007.. sidc@>!'tIiat time the depaitiieiit i has de1err;ilrieTd'-Kit' some operating clr- cumstances were Inadvertently omitted, end these

.. are Included In thls revlslon. In this' rulemakln the depart- ment Is 

### aka. updating the reaulatlons to in. clude the lateft changes to the federal program. Thls rule is also being proposed as a revlslon to the nlr quality CAlR state lm. plementatlon Plan (SIP). The basis and rationale for thls pro. posed rule are to Im. prove air quality through the reduction of Intrastate and Inter. state emlsslons of NOx from electrical gener- atlng unlts. Thls pro- posed rule meets an exception listed In R.S. 30:2019lD)I2) and R.S. 49:953(G) 13); therefore, no report regard. Ing envlronmentel/ health beneflts and soclal/economlc COSIS. Is requlred. Thls prpposed rule has no known Im act on famlly formatkn, st*. blllty and autonomy as described In R.S. 49:972. A public hearlna wlll be held on Aprll 24, 20011. at l:30 m. inthe Galvez ~ull~tig;'~llver POIIOC~, ' conference Room 602 N.. Fifth street: Baton Rouge, LA 70802. The hearlng. wlll also be for .the re- vlslon to !he CAlR SIP to incorporate this pro- posed rule. Interested persons are lnvlted.to attend and submit oral comments on the rrro

### of 

### THE TOWN TALK, published at Alexandria,
Louisianado solemnly swearthat the
Public Notice (AQ292) advertisement,as

### per clipping attached, was published in theregular and entire issue of said newspaper, andnot in any supplementthereof
for

# oneinsertion(s)commencing with the issue
dated March 12,2008 and ending withthe
issue dated 

### March 12.2008.

Subscribedand sworn to before me

' 

### this- 12th 

### day of March. 

### 2008.

~hls proposed regula- tion Is avallable for lo spectlon at the followIng DEQ Office lOC9. tlons from 8 a.m. untll 430 p.m.: 602 N. Fifth street Baton Rouge LA 76802. 1823 ~lgh' way 546, Wast Monroe, LA. 71292. State. offlce ~uildlng,'1525 Falrfleld venue Shreve ort, LA. 7110'1. 1301~a8wa11 street iake Charles LA 7d15. 111 Newen! ter ~ri;e, Lafayette, LA 70508; 110 ~aratarla Street, Lockrt,LA m374; 645 N.

otus Drive, Sulte C, Mandevllle, LA 70471. HERMAN ROBINSON, CPM Executlve counsel (3) .12
-. ....

# D 

# COPY
---..-.-

..I X.... . 

### , NOTICEOF.'INTENT Deportment of Environmenral'~ualltj/ .Of. flce of the Secretqp LesolAffalrsbivlsian'~.,

Clean Alr Interstate Rule (LAC 33: 11'1.5Ub) (AQ2921

. -- -.

Under the avthorltv of, the Environmental Quollty; Act, R.S.:30:2001 et sect., and in accbrdance with the ~rovl. tlve P~-~u~~,Ac~,'R.s~ 49:950 et,seq., the secre ruiemiklng,procedures' have be.bn*in.itiated..to. amen'd the A'iraregulations, LAL.33: 111..506 (~0g.#AQ292j~rw -%.at. This revlslon for the Clean .Air 'Interstate Rule (CAIR):;nltrogen oxlde ('NOXI. trad!ng programs ollocatton metholodosy addresses the following Issues:<:upL dates citatlons to oll'federa1 revtslons to.the I CAIR; revises and odds deflnltlons; provides that allowances for petroleum coke-flred electrical generating unlts (EGUs) ore to be calcu~ lated usine.the same n methodology os allow- ances fo.r

. coal-fired EGUs; adds o provislan for. repowered..utitItv unlts; adds a provlslon for the reclosslflcatiori of units from utllltv to non-utilitv and vice verso; and adds language to cease dllocation.of NOxallowances to.certlfied unlts that are not built (If the unlt does not commence op- eratlons bv.0 certaln date, Men the perrillt be. comes vaid. Once the permit is void, no addltionol allocations wlll be mode.). EPA prornul- sated a CAiR Federal Im~lementation~ Plan c~ipi ori~prii28, 2006, which allows o state to allocate CAIR NOx 01- lowonces in a manner that Is different frorn.the FIP. The Initialstate allocation rule was prorn- ulsated on August '20, 2007. Sincethat tlme the deportmentlha$ determined that some awroirvlemokindthe depart. ment is also updating the regulations to include the lotest changes to the federal progrom. This rule Is olso.'being proposed as a revisionto the air quolltv CAIR State lm~lementotlon Plan LS!Pl. The basis ond rat~onale for this proposed rule are to.improve air quality through the reduction of intrastate and interstate emissiohs of NOx f rorn electrical gen&?ating unlts. This proposed rule meets on exception listed In R.S. 

# Affidavit ofPublication

STATE 

## OF LOUISIANA Parish of Calcasieu 

## RECEIVED 

## MAR 1

## y20iJ8

LDEO/OSEC/LAD REGLILATIONDEVELOPMCI.IT SECTION



### Beforqme the undersigned authqty,personally came and appeared I / n 

### -

He/She is aduly authorizedagent of 

### LAKE CHARLES AMERICAN PRESS anewspaper published daily at 4900Highway 90East, Lake Charles,Louisiana, 70615. (Mail address: P.O.Box 2893 Lake Charles,LA 70602)


### The attached Notice was published

### in saidnewspaperin itsissue(s) dated: 00429881 

## - $46.00 March 14,2008

~ulyLkuthoiized Agent Subscribedand swoin 

### to before me 

### on this 14thday of March, 2008 

### at Lake Charles.LA

LDEQ-OSEC-LAD 

# J Notaly Public-. - 

### . All Injerested persbns are InvlYed to $ubmri wrltteh' cadmenti an thez~robos&d'regul6tlon; Persons. @mq.snfltigs should t6fer'lAc#thle proposedreau~afl~ri by AQ292.
.Such.mmmentrr must tik,"rebel.ved no late? tKah-Mav 1 2008 at 4ijoSITS!; .anb

### &"id.

Barntarla Strebf. Lockport, LA70374; 645 N.

CPM

, ~recutive CwnselI.DEP/OSEC/LAO REGULATION DEVELOPMENT St 

# I - Publisher of

THE NEWS-STAR 

# MONROE, LOUISIANA 

# PROOF OFPUBLICATION
The hereto attachedadvertisement Was published in the 

## NEWS-STAR. lily newspaper ofgeneral circulation. Published in Monroe, Louisiana. Parish of Ouachita 

## in the issues of:



# LEGALAD DEPT.
Sworn and subscribed before me

## by

The personwhose signature appears above 

## in Monroe, LA on this



# NOTARY

# PUBLIC 

# Stevenb. 

# Turner # 

# 431

# 54

## RECEIVED 

## MAR 

## 19 ?ili

Igfate allocation rvld iwas proniulgated oh: fiugust 20 2007.

.Sincq. Ithat.. time' the depart /,?ije"t has determi"ed !that some operating j,circumstances were In-;, p-dver?en!!Y-.2!E!ftxd~ LDEQ/OSEC/LAG REGULATIONDEVELOPlrlENl

,

## . ' .. 

# :PR.OOF,.OF ,. . .. 

# PUB;LICATION

,.. 7 I) n G,~!'.I. ,,,I:.

. . ! . 3' ;,. 

## ..

. . _A!'+ I $2,' hb ,.? . *;

U. .., .,,,. ;. . , " 

### Beforeme, the~dersi$ld:autH'dn~, &sona[ly came 

### and appeared

.. . 

### . , , . ;-' ; ,C,. u,, -'.' .L 

# .- '..

. , , I:
. ' ':

.

# . .- *<

. *I, i' 

### ~l,@eas ~ritt~n;~er$$all$ &k*yn:,:tohe, ...>.'

. 

### ?

, . y:+

. *., .,:, :' .,,, 7, .'.'!.

. .

. ., 

### :. 2, ',a:,. 4'.I.i ... , C.. L, 

### . 

# %G ?,kg .-., a;.L., 

### d~ly~iworn,

.. 

### depdiel'&&says .* ,.: s ,*, ,I+ 

### that she<is theAssistantto the 

# c

ja@i,siji@.~~dyebi siq&:.~~a~~r, 9fThd Tim$$; ahd;,tbatthe attached 

## Ad$'&fiisi~e?&i &%-tiir.d,: ,;;, ,,>

. ,.,

,,. .<.,;>. , 

# ..

.., , <%.
. , ' r.. 

### . .,.-< ?* , . "' 

### ..'.

, !.r 

### NOTICE dk'$~~NI,~e~arbn~nt nlf ~nvironmental Quality Office of the Secretary Legal Affairs ~ivisi'i= Clean Air Interstate Rule 

### (LAC 33:III.506) (AQ292)

C___ 

### As per.copy of advertisement hereto annexed, was published in

The Times on the following datestowit:

March 12,2008 (Signed)

Sworn to and subscribed before methis 12'~ day of March, 2008

wuw W. BARBER, NOTARY PUBLIC 60491 

### (Notary) CADW PARISH, LOUISLANA MY ~o~UlsSl0N IS FOf3 LIFE

# I STATE OF LOUISIANA
DEPARTMENT O F E N V I R O N M E N T A L QUALITY

IN RE: 

# I
CLEAN A1.R INTERSTATE RULE WHICH 

## AMENDS LAC 33:III.506
LOG #: 

## AQ292
PUBLIC HEARING

The Public Hearing held by the Department Environmental Quality, Regulation 

# I Development Section, at the Galvez Building, Oliver Pollock Conference Room, 602 

## N. Fifth1 Street, Baton Rouge, Louisiana, beginning 1:30 p.m., on April 24, 2008.

BEFORE : 

## Lori B. Over1a.nd Certified Court Reporter In and For the State of 

## Louisiana



# ASSOCIATED REPORTERS,INC. RECEIVED
(225) 216-2036 

## APK 

## 2 

# 8ZOO8
LDEQIOSECILAD REGULATIONDEVELOPMENTSECTIONI 

### DEPARTMENT OF

### ENVIRONMENTAL QUALITY


### APPEARANCES

FOR T H E L O U I S I A N A D E P A R T M E N T 

## OF E N V I R O N M E N T A L Q U A L I T Y : Stan Hazard Hearing Officer Department of Environmental Quality Legal Affairs Division, 8th Floor Regulation Development 602 N. 

### Fifth Street Baton Rouge, Louisiana 70802

ASSOCIATED REPORTERS, 

### INC.

### DEPARTMENT OFENVIRONMENTAL QUALITY


## INDEX



## EXAMINATION:
None

EXHIBITS:
None

REPORTER 

# ' S PAGE 

## REPORTER"^ CERTIFICATE PAGE (S) 

### :



### ASSOCIATED REPORTERS, INC. (225) 

### 216-2036

### DEPARTMENTOFENVIRONMENTAL QUALITY

.. , ,. . '


### MR.. HAZARD: 

## Good afternoon! My name is Stan Hazard. I'm employed by t h e L o u i s i a n a Department of Environmental Quality. 1'11 be serving as hearing officer this

. . 

## afternoon to.receivecommknts'regarding
7 

## proposed amendments to the environmental
8 

## quality regulations. 

# I

# - The comment period for these amendments began on March 20, 2008, when the notice of intent was published in the Louisiana Register. The comment period will close at 4:30 p.m., today, April 24, 2 0 0 8 , f o r the Log Number MM007ft, and at 4:30 p.m., May 1, 

## 2008, for the Log Number AQ292. It would be helpful to us if all oral comments received today were followed up in writing. This public hearing provides a forum for all interested parties to present
comments on the proposed changes. This hearing is not being conducted in a question and answer format. Please 24 

## remember that the purpose of this public I 

### 25 

## hearing i s t o allow you, the public, an

ASSOCIATED REPORTERS, INC.

### DEPARTMENT OF ENVIRONMENTALQUALITY 

## opportunity to e x p r e s s y o u r thoughts concerning today's proposed amendments. The first amendment is designated 

## by the Log Number AQ292. T h i s r e v i s i o n f o r t h e Clean Air I n t e r s t a t e R u l e , (CAIR) Nitrogen Oxide (NOx) trading programs allocation methodology addresses t h e f o l l o w i n g issues: updates citations to all federal revisions to t h e C A I R ; revises a n d a d d s d e f i n i t i o n s ; p r o v i d e s t h a t allowances for petroleum coke-fired,electrical g e n e r a t i n g u n i t s (EGUs) are to be c a l c u l a t e d u s i n g t h e s a m e m e t h o d o l o g y as a l l o w a n c e s f o r c o a l - f i r e d EGUs; adds a provision for repowered utility units; 1


## adds a p r o v i s i o n for t h e r e c l a s s i f i c a t i o n of units from utility to non-utility and vice versa; and a d d s l a n g u a g e to cease allocation of NOx allowances to recertified units that are not built (If the unit does not commence operations by

a certain date, t h e n t h e permit becomes void. Once .thepermit i s v o i d , no a d d i t i o n a l a l l o c a t i o n s will be made.).

ASSOCIATED REPORTERS,

### INC.

### DEPARTMENT 

### OF ENVIRONMENTAL QUALITY


## EPA 

## promulgated a CAIR Federal Implementation Plan (FIP) on .April 28, 

## 2006, which allows a state to allocate
CAIR NOx 

## allowances in a manner that is different from the FIP. The initial
state allocation rule was promulgated on I 

## August 20, 2007. Since that time the I

D 

## department has determined that some operating circumstances were i n a d v e r t e n t l y o m i t t e d , and these are included'in this revision. Inthis rulemaking the.department is also updating the r,egulationsto include the latest changes to the federal program. This rule is also being proposed a s a a- 

### I 

## revision to the CAIR S.tate Implementation ! 

## 1 Plan (SIP). D o e s a n y o n e care to comment on this

I I 

## regulation? 

## If' not, the

Thank' 

## you for your atte,ntionan'd
R 

## participation. T h i s h e a r i n g i s closed.
THE HEARING CONCLUDED 

### AT 1:33 

### P.M.

ASSOCIATED REPORTERS, INC. . .

### DEPARTMENT OF

### ENVIRONMENTAL QUALITY
1 

### REPORTER'S PAGE
2 

## I, Lori B. Overland, Certified Court Reporter, in and f o r t h e State of Louisiana, the officer, as defined in Rule.28of the F e d e r a l R u l e s of Civil Procedure and/or Article 1434 

## (b) of the Louisia'na code of Civil Procedure, before whom this sworn t e s t i m o n y w a s t a k e n , d o hereby s t a t e o n the Record T h a t d u e to the interaction in the spontaneous discourse of this proceeding, dashes (- 

## have been used to indicate
pauses, changes in thought, and/or talk 

## I I 

## overs; that s a m e i s the proper method for a I 

## C o u r t R e p o r t e r s ' s transcription of proceeding, and that the dashes -- 

## do not indicated that words o r p h r a s e s have been left out of t h i s t r a n s c r i p t ; That any words and/or names which could
not be verified through reference material h a v e b e e n denoted with the phrase

, I 

## " (inaudible)



## . "



### ASSOCIATED REPORTERS, NC. 

### (225)21

### 6-2036

### DEPARTMENT

### OFENVIRONMENTAL QUALITY


### C

### E RTI F 

### ICAT.ION

I 

### I, 

## the undersigned reporter, do hereby certify that the above and foregoing is.a
true and c o r r e c t t r a n s c r i p t i o n of the 5 

## s t e n o m a s k t a p e of theproceedings had 6 

## herein, taken downby me and transcribed
7 under my supervision, to.thebest 0.fmy 

# I 8 I 

## ability and understanding, at t h e t i m e and 

# I 9 

## place hereinbefore noted, in the above .r 

## 10 e n t i t l e d c a u s e . 11 

## I further certify that the witness was 12 duly sworn by me in my capacity as a 13 Certified Court Reporter purs'uant to the I LI 

### 14 

## p r o v i s i o n s o f R.S. 37:2551 

## et seq. in and I 

### 15 .II 

## for the state of Louisiana; that 

## I am not of

I 

## 16 counsel nor related to any of the counsel of

i l 

## 17 any of the parties, nor i n t h e e m p l o y o f a n y 18 of the parties, and that 

## I have no interest



# . . I 

## 19 in the outcome of this action..
' 

## 20 ' 

## I further certify that my license is in 

# -
2 

## 1 g o o d ' s t a n d i n g as a court r e p o r t e r i n a n d for
22 the 

## state of Louisi
23 

## Lori

ASSOCIATED REPORTERS,WC. (225) 216-2036Department of Enviromental Quality April 24, 2008 InRe: Clean Air 1nkfstate Rule Log #: AQ292
Paoe 1

EXHIBITS 3: 5

additional 5:25 federal5:9 6: 1,14 proceeding 7: 11,16

coke-fired 5: 12

allocations 5:25 provision 5:1.6,17

. , provisions 8:14' public 1:9,12 4:19

R2:l 7:1,1,1 8:l

.

Baton 1:142:7 recertified 5:21 before 1: 19 7:7 determined 6:8 reclassification

CAlR5:6,10 6:1,4 remember4124 calculated 

### 5:14 interested4:20 reporter 1.20 7:3 electrical 5:12

revision 5:5 6:11,16~epartrnent'of 

### Envlrornental Quality April 24, 2008 

### In Re: Clean Alr InterstateRule ~og #: ~~292 

### Page 2

. .

. .

S'2:17:1.. 

### same5:14

### 7:14 Section 1:13

.


### Since6:7

. '
. 

### some6:8

. .



### state 1 :3,206:3,6
stenomask%:S. :

. . sworn 

### 7:7 8:12 2008 1:14 4:19;14

. ~...

. .

### UNITEDSTATESENVIRONMENTALPROTECTIONAGENCY REGION6 1445 ROSS AVENUE. SUITE 1200 DALLAS.TX ,75202-2733 

# APR 2 8 2008

Ms.Judth A. Schuemn,Ph.D. ' 

### Officeofthe Secretary 

### Legal AffairsDivision Louisiana Department ofEnvironmental Quality P.O. Box 4302 BatonRouge,

### LA 70821-4302


## RE: Commentson AQ292

# -Louisiana's ProposedRevision to the State Implementation Plan (SIP)forthe Clean AirInterstateRule 

### (CAIR) Nitrogen Oxide(NOx)Annual, NOx Ozone Season,and SulfurDioxide (SOz)

### Trading Programs
Dear

### Dr. Schuerman:


### Thankyou for

### the opportunity to review the proposed 

### changesto the 

### State hp1ementation Plan andthe LouisianaAdministrative

### Code (LAC)

### 33:ItI.506. 

### The proposed action updates the Clean AirInterstate

### Ruleprovisions to address recent Federalrulemakings, revises and adds definitions specificto the Louisianaprograms, 

### and updates the LouisianaNOx annual 

### and ozone season aIlocationmethodologies. We greatly appreciatethe time and attention your staffhas devoted toprocessing this proposed rulemaking and your willingnessto consultRegion 

### 6 during the rule development.

I 

# - I I 

### Based on our review of the proposed SIP revision, we

### would liketo submitthe 

# I- following commentsfor your consideration.


### 1; Please clarify the definitionof "Electric Public Utility" at LAC33:m,506(A)(l). j 

### Thisdefinitionuses the phrase "by such facility" twice, and it isnot clearwhich

, 

### type of facilityisbeing referenced.

II ! i 

### 2. 

### Werecommendthat the reclassification of unitprovisions

### atLAC 33:III.506(A)(4) and 

### (B)(4) be revised to clarify

### the date 

### from which the "next allocationperiod" wouldbe determined. We recommend .thefollowing,language for your consideration:



# - RecycledlRWdWe *PmtedrrlUlVeptsble.011 Based lnkPon 1WbRecyded Paper (40% Poslmnsurner)

.. .. :.. :

, ,...... , '. 

## . .:.:..,..
,
. .. . . :.

... 

### _ . ..

.. . 

# -

### ReclassificationofUnita. 'when

### theo&hip of 

### aunit istransferred, the unit is reclassified accordingly

## as a utility ornon-utility unit. The department will allocatefuhm 

### allowancesusingthe new classification beginning with the allocation subdssion deadline after

### the effective date of the unitreklassification. Theelectricpublic utility must notify the ,.' 

### departmentof the transferof ownerihip. No changes will .bemade

, 

### without written notification from the electricpublic utility.

1 

### It is our understanding that the allocation provisions forNOx 

### ozone season CAJR 

### allowancesat LAC 

### 33:II1.506(B)(2)(b)(i) and 

### (ii) are intendedto create a hierarchy of preferences; the 

### LDEQ preferstouse control

### period 

### gmsselectrical output forthe calculationbutif

### this infomation

### isnot availablethe calculations will be 

### performed with annual gross electrical output. 

### Werecommend the followingclarification to 

## LAC 33:DI.S06@)(2)(b)(i) tocapturethe Louisiana Department ofEnvironmental Quality (LDEQ)inkint

### in the solid fuel-fired allocationprovisions:
For a solid.fuel-fuedunit, the hourly heatinput fora specifiedcalendar year shall equal the control period 

### grosselectricaloutput, including the capacity factor,ofthe generators(s) 

### servedby the unit multipliedby 7,900 

### BTLT/KWh and dividedby 1,000,000

### BTUiMMBTU. Ifthe controlperiod grosselectricaloutput

### is unavailable, 

### the hourlyheat input for a specified calendaryear shall equal

### the annual gross electrical output,including the capacityfactor, of

### the generators(s)servedby the unit multipliedby 

### 7,900 

### BTUJKWhanddividedby 1,000,000

### BTU/MMBTU, andmultipIiedby 

### 5/12.


### In addition to the hierarchyclarification discussedabove, we notethere

### is 

## a typographicaIerrorin the proposedallocationprovisions forgaseous and liquid fuel-firedunits at 

## LAC33:IU.506(B)(2)(b)(ii) such'thatthe annual 

### gross electricaI output iscalculatedwith the solid fuel-firedadjustment. 

### Werecommendthe followinglanguage:
For a gaseous or liquid fuel-fired unit,the hourly heat input for a specified calendaryear shall equal the control

### period gross electrical output, includingthe capacityfactor, of the generators(s)servedby the unit multipliedby 6,675 

### BTUIKWh and dividedby 1,000,000

### BTU/MMBTLT. Ifthecontrol

### period grosselectricaloutputis unavailable, the hourly heat input fora 

### specified calendar year shallequalthe annual gross electrical output,includingthecapacity factor,ofthe generators(s)servedbythe unit multipliedby 6,675

### BTLTIKWh and divided

### by 1,000,000 BTU/MMBTU, and multipliedby 5/12.


### Theproposedrevision to LAC 33.ILI.506(C) should includethe most recent Code ofFederal 

### Regulations 

## (CFR) publication date forthe Federal SO2

### Model Rule at

### 40 

### CFR

### Part 96 

### and all

### EPA rulemakingssubsequentto the 

## CFR publication; 

### Pleaseupdate the

## CFRpublication date to July 1,2007, 

### insteadof July 1,2006. 

### Thankyou forthe 

### opportunityto provide comments. Please notethat these commentsdo not constitutefin@determinationsconcerningapprovabilityofthe Louisiana CAIR

### NOX Annual,

## N& Ozone 

### Season,or S& 

### Trading

### Programs 

## SIP revision. We lookforward,toworking with 

### LDEQ as yiiu move forwardin responding to these commentsandfinalizing the Louisiana CAJR

### SIP. If you have any questions, please call

### Ms. AdinaWjley ofmy staff at 

### (214) 665-2115.



### JeffRobinson Chief AirPennits 

### SectionPage 1 of 4 AQ292 Summary May 2,2008 

### Comment Summary Response 

### & Concise Statement

# -AQ292 Amendments to the Air Regulations Clean 

### Air Interstate Rule LAC 33:111.506

Concise Statementarguments: FOR: [The reason supporting WHY the suggestion in the comment should be adopted by DEQ. Usuallythis is the commentetsperspective.] AGAINST: rhereasonWHY the departmentfeelsthe suggestionshould NOT be adopted.] 

### Use these standardized statementswhere youfeel they may beappropriate:

COMMENT 

### 1: 506.A. 1

# -Clarify the definition of Electric Public Utility.

### This definition usesthe phrase "by suchfacility" twice, and it is not clear which type of facility is being referenced.
FORIAGAINST: The department agreeswith the comment; no arguments are necessary. RESPONSE 

### 1

## : The departmentwill insert language to clarrfy the definition.


# I COMMENT 

### 2: 506.A.4, 

### 6.4 

# -Revise these Paragraphsto clarify the date from whichthe next allocation periodwould be determined, as follows:
"ReclassificationofUnits. When the ownership of a unit is transferred, the

### unit isreclassified accordingly as 

### a utility or non-utility unit. The departmentwill allocate future allowances using the new classification beginning with the allocation submission deadline after the effective date of the unit reclassification. The electric public utility must noti@ the department of the transfer ofownership. No changeswill be made 

### without official notification from the electric public utility."
FORIAGAINST: The department agreeswith the comment; no arguments are necessary. RESPONSE 

## 2: The departmentwill clarify the timeframewhen allocationswill be re-calculatedbased upon changes in classification.Page2 of 4 AQ292 Summary May 2,2008 

### COMMENT 

## 3: 506.B.2.b.i 

## -Inorder to clarifythe department's intent that there be a hierarchy of preferences for calculatingozone season heat input, change 506.B.2.b.i to the following:
"For a solid fuel-firedunit, the hourly heat input for a specified calendar year shall equal the control period gross electrical output, including the capacity factor, ofthe generator(s) served by the unit multiplied by 7,900 BTUKWh and divided by 1,000,000 BTUIMMBTU. If the control period gross electrical output is unavailable, the hourly heat input for a specified calendar year shall equal the annual gross electrical output, including the capacity factor, ofthe generator(s) served by the unit multiplied by 7,900 BTUKWh and divided by 1,000,000 BTUIMMBTU,and multiplied by 5/12."
FORfAGAINST: The department.agrees with the comment; no argumentsare necessary. RESPONSE 

## 3: The department will clarify that when allocating ozone season NOxallowances,the preference isto use control period gross electrical output when it is available over calendaryear gross electrical output.

COMMENT 

### 4: 506.B.2.b.ii 

## -There is 

### a typographicalerror inthis Clause such that the annual gross electrical output for gaseous or liquidfuelfired units is calculated using the solid fuel-fired adjustment. Also, in orderto clarifythe department's intent that there be a hierarchy of preferencesfor calculating ozone season heat input, change 506.6.2.b.ii to the following:
"For a gaseous or liquid fuel-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 BTUiKWh and divided by 1,000,000 BTUIMMBTLJ. 

### If the controlperiod gross electrical output is unavailable, the hourly heat input for a specified calendar year shall equal the annual gross electrical output, including the capacity factor, of the generator(s) served by the unit multiplied by 6,675 BTUIKWh and 

### divided by 1,000,000BTUIMMBTU, and multiplied by 5112." FORIAGAINST: The department agrees with the comment; no argumentsare necessary. RESPONSE 4: 

### See Response 3 

### and the typographicalerror will be corrected.Page4 of 4 AQ292 Key 

### Comment Summary Response & 

### Concise Statement

# -AQ292 Amendments to 

### the Air Regulations Clean Air Interstate Rule LAC 33:111.506



### COMMENT #


### 1-5 SUGGESTED BY
Jeff Robinson/ 

### Environmental ProtectionAgencygated LR 30:233(February 2004), amended by the

Amount of Required Financial Security

Office of Environme

ofthe Secretary, Legal A

AUTHORITY NOTE: P 30:2001et seq., and in parti 2075.2 and 3. the Depaitment of

Subpart 3. Louisian

A.

### - C.3.d.iii.


## ... commercial prepares appliers of biosolids

1

# -

Office of Environmental Assessment, Division, LR 28:796 (April 2002), (February 2004), amended by the Ofice Affairs Division, LR 31:2516 (October

1 bchapter 

### B. Appendices Assurances Documents-Appendices A,B,C,D,E,F,G,H,I,andJ

A. 

## - H.5



### .... I. Produced waters fiom oil and natural gas

E: Promulgated by the

Office of Air Quality and

Herman Robinson, CPM Executive Counsel

POTPOURRI Department of EnvironmentalQuality Omce of the Secretary LegalAffairsDivision
Clean Air Interstate Rule (CAIR) Nitrogen Oxides 

### (NO,) Trading Programs SIPRevision (0806Potl)
Under the authority of the Louisiana Environmental Quality Act, R.S. 30:2001 et seq., the secretary gives notice that the OWce of Environmental Assessment, Air Quality Assessment Division, 

### is proposing a revision to the Louisiana air quality State lmplementation Plan (SIP). The proposed revision to the SIP contains the revisions to the Clean 

### Air Interstate Rule (CAIR) nitrogen oxide (NO,) trading programs allocation methodology rule. Following the promulgation of CAIR, 

### EPA promulgated a Federal Implementation Plan (FIP) for the rule on April 28, 2006. LouisianaRegister Vo/.34, No. 06 June 20,2008The FIP became effective on June 27, 2006. The FIP gives limited flexibility in implementation of certain federal rule provisions related to CAIR and provides states with an option to submit an abbreviated SIP. Louisiana submitted an abbreviated SIP for the Annual and Ozone Season allowance allocations method on August 20, 2007, and it was approved by EPA on September 28, 2007, in the Federal Register at 72 FR 55064. Louisiana will remain under the other provisions of the FIP for the Annual and Ozone Season NO, Trading Programs.

On March 20, 2008, the department proposed revisions to the CAIR NO, Trading Programs allocation methodology rule (AQ292) in the Louisiana Register. This rule updates certain citations to all federal revisions to the CAIR; revises and adds definitions, adds provisions for petroleum cokefired electricity generation units (EGUs) and reclassification of units from utility to non-utility and vice versa; and adds language to cease allocation of NO, allowances to certified units that aren't built. The state provisions in the rule will be in lieu of 40 CFR 96, Subpart EE 

### - CAIR NO, Allowance Allocations ($96.141 and $96.142) and Subpart EEEE 

### - CAIR NO, Ozone Season Allowance Allocations ($96.341 and $96.342). Upon final promulgation, AQ292 will be submitted to EPA as a revision to the Louisiana SIP. The submittal of an approvable abbreviated SIP revision of the CAIR Annual and Ozone Season NO, Trading Programs satisfies Louisiana's obligation under Section 1IO(a)(Z)(D)(i)of the CleanAir Act (CAA).

The public hearing for the revision to the SIP will be held on July 29, 2008, at 1:30p.m. in the Galvez Building, Oliver Pollock Conference Room, 602 N. Fifth Street, Baton Rouge, LA 70802. Interested persons are invited to attend and submit oral comments on the proposed SIP revisions. Should individuals with a disability need an accommodation in order to participate, contact Vivian H. Aucoin, at (225) 219-3575 at the address given below. Two hours of 6ee parking are allowed in the Galvez Garage with a validated parking ticket.

Interested persons are invited to submit written comments concerningthe proposed CAlR abbreviated SIP revision no later than 4:30 p.m., August 

### 5, 2008. Comments should be sent to Vivian 

### H. Aucoin, Ofice of Environmental Assessment, Box 4314, Baton Rouge, LA 70821-4314 or FAX to (225) 219-3582 or by e-mail to vivian.aucoin@la.gov. The proposed SIP revisions are available on the Internet at 

### www.deq,louisiana.gov/porta~tabid/2381/Default.aspx under Louisiana SIPRevisions.

Acopy of the proposed SIPrevision may be viewed at the following DEQ office locations from 8 a.m. to 4:30 p.m.: 602N. Fifth Street, Baton Rouge, LA 70802; 1823 Highway 546, West Monroe, LA 71292; State Ofice Building, 1525 Fairfield Avenue, Shreveport, LA 71101; 1301 Gadwall Street, Lake Charles, LA 70615; 111 New Center Drive, Lafayette, LA 70508; 110 Barataria Street, Lockport, LA 70374; 645N. Lotus Drive, Suite C,Mandeville, LA 70471. Herman Robinson, CPM Executive Counsel

Louisiana Register Vol. 34, No. 06 June 20, 2008 

# \ POTPOURRI Department ofHealth and Hospitals Office ofPublic Health 

# /' \ Public Hearing-Preventive Health and Health Services Block Grant
Health and Hosp hearing to receive

percent. 

# \

Alan Levin/

Annual ~1~~~hsessment Rate
Pursuant to Louisian the annual HIPAA asse the 'Department of Insu 

# /

Commissi James J.

# T

er
0806#043
POTPOURRI Depa mentofNatural Res of Conservatb~ 

# / Orphaned Oilfield Sites 

# \

# - 

# APPENDIX B -



# - 

# FINAL RULE AQ292 WITH TECHNICAL AMENDMENTS

# Rules

RULE Department of Environmental Quality Office of the Secretary Legal Affairs Division
Clean Air lnterstate Rule (LAC 33:111.506)(AQ292)
Under the authority of the Environmental Quality Act, R.S. 30:2001 et seq., and in accordance with the provisions ofthe Administrative Procedure Act, R.S. 49:950 et seq., the secretary has amended the Air regulations, LAC 33:III.506 (Log#AQ292).

This revision for the Clean Air lnterstate Rule (CAIR) nitrogen oxide (NO,) trading programs allocation metholodogy addresses the following issues: updates citations to all federal revisions to the CAIR; revises and adds definitions; provides that allowances for petroleum coke-fired electrical generating units (EGUs) are to be calculated using the same methodology as allowances for coal-fired EGUs; adds a provision for repowered utility units; adds a provision for the reclassification of units from utility to non-utility and vice versa; and adds language to cease allocation ofNO, allowances to certified units that are not built (If the unit does not commence operations by a certain date, then the permit becomes void. Once the permit is void, no additional allocations will be made.). EPA promulgated a CAIR Federal Implementation Plan (FIP) on April 28, 2006, which allows a state to allocate CAIR NO, allowances in a manner that is different from the FIP. The initial state allocation rule was promulgated on August 20, 2007. Since that time the department has determined that some operating circumstances were inadvertently omitted, and these are included in this revision. In this rulemaking the department is also updating the regulatjons to include the latest changes to the federal program. This rule is also a revision to the air quality CAIR State Implementation Plan (SIP).The basis and rationale for this rule are to improve air quality through the reduction of intrastate and interstate emissionsof NO, from electrical generating units. This rule meets an exception listed in R.S. 30:2019(D)(2) and R.S. 49:953(G)(3); therefore, no report regarding environmentallhealth benefits and social/economic costs is required. Title 33 ENVIRONMENTAL QUALITY Part 111. Air Chapter 

### 5. Permit Procedures 6506. Clean Air lnterstate Rule Requirements

A. Clean Air lnterstate Rule (CAIR) Nitrogen Oxide (NO3Annual Program. This Subsection is adopted in lieu of 40 CFR 97.141 and 97.142 

### rn promulgated under the CAIR Federal Implementation Plan (FIP) NOx Annual Trading Program on April 28, 2006, at 71 FR 25328-25469 and as amended on October 19, 2007, at 72 FR 59190-59207. All provisions of 40 CFR Part 97, Subparts AA-HH, continue to 

### 1

mi Louisiana Register Vol.34, No. 06 June 20, 2008 apply, with the exception of 597.141 (Timing Requirements for CAIR NO, Allowance Allocations) and 597.142 (CAIR NO, Allowance Allocations). The provisions of this Subsection state how the CAIR NO, annual allowances shall be allocated in accordance with this Section and 40 CFR 97.144(a). 1. Definitions. The terms used in SubsectionA 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. Certified Unit-an electricity-generating unit 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. Certified Unit orContract-Repealed. 

### +** Electric Public Utility-any person furnishing electric service within this state, including-any electric cooperative transacting business in this state, provided, however, that the term shall not be conkedto apply to any co-generatorwho consumes any or all of the electric power and energy that it generates or to any independent power producer who sells its entire production of electric power and energy to an electric public utility as herein defined. Fuel 7)pes-for the allocation' of allowances under Louisiana's program, fuel types include solid, gaseous, or liquid fuel.The following definitions apply tofuel types. i. SolidFuel-includes, but is not limited to, coal and petroleum coke. Any amount of solid fuel that is combusted, alone, in series, or in combination with any other fuel, during any control period shall meet the definition of solid fuel. i. Gaseous Fuel-includes, but is not limited to, natural gas, propane, coal gas, and blast furnace gas. Any mixture containing at least 50 percent of gaseous fuel that is combusted with liquid fuel during any control period shall meet the definition of gaseousfuel. iii. Liquid Fuel-includes, but is not limited to, petroleum-based oils and glycerol. 

### +*+ LPSC or Municipal Certification-the process under which the LPSC certifies, or the relevant municipal authority approves, construction, conversion, or repowering of an electricity-generating unit as being in the public convenience and necessity. This process includes the certification or approval of long-term contracts that dedicate a portion ofthe 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. 

### *** Urility Unit-a certified unit that is in operation, a previously-operational certified unit, a non-utility unit purchased by an electric public utility, 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 atleast one year in duration, provided that the municipality or utility unit expects to receive power under the contract within oneyear ofthe contract execution. 2.

# - 2.a



## ....

b. Certified Units. A certified and permitted unit subject to CAIR shall be allocated NO, allowances for the controlperiod in which the unit will begin operation, and for each successive control period, for which no NO, 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 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. Repowered utility units will be allocated in the same manner as certified units in the control period of certification. Converted heat input is calculated as follows. i. For a solid fuel-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 BTUKWh and divided by 1,000,000 BTUMMBTU. 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 generatoris served by two or more units, then the gross elec2cal output ofthe 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 forthe year. ii. For a gaseous or liquid fuel-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 BTUKWh and divided by 1,000,000BTU/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. Ifa generatoris 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. c. Utility Units. The department shall allocate CAIR NO, allowances to each CAIR utility unit by multiplying the CAIR NO, 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 heat input of the CAlR utility unit to the total amount of adjusted 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 heat input (in MMBTU) used with respect to the CAIR NO, annual allowance for each CAIR utility unit shall be established as follows. i. The average of the unit's control period adjusted heat input for the three calendar years immediately 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. (a). If the unit is solid fuel-fired during a year, the unit's control period heat input for that year shall be multipliedby 100 percent. (b). If the unit is liquid fuel-fired during 

### a year, the unit's control period heat input for that year shall be multipliedby 60 percent. (c). If the unit is not subject to Subclause A.Z.c.i.(a) or (b) of this Section, the unit's control period heat input for the year shall be multiplied by 40 percent. ii. A unit's control period heat input, fuel type, and total tons ofNO, emissions during a calendar year shall be determined in accordance with 40 CFR Part 97 and reported in accordance with LAC 33:111.919. 3.

# - 3.b



## .... 4. Reclassification of Units. When the ownership of a unit is transferred, the unit is reclassified accordingly as a utility, or non-utility unit. The department will allocate future allowances using the new classification, beginning with the allocation submission deadline afterthe effective date of the unit reclassification. The electric public utility must notify the department ofthetransfer of ownership.No changes will be made without written notification from the electric public utility.



### B. Clean Air Interstate Rule (CAIR) Nitrogen Oxide 

### (NO,) Ozone Season Program. This Subsection is adopted 

### in lieu of40 CFR 97.341 and 97.342 as promulgated under the CAIR Federal Implementation Plan (FIP) NO, Ozone Season Trading Program on April 28,2006, at 71 FR 25328- 25469 and as amended on October 19, 2007, at 72 

### FR 59190-59207. All provisions of 40 CFR Part 97, Subparts AAAA-HHHH, continue to apply, with the exception of $97.341 (Timing Requirements for CAIR NO, Ozone Season Allowance Allocations) and $97.342 (CAIR NO, Ozone Season Allowance Allocations). The provisions of this Subsection state how the CAIR NO, ozone season allowances shall be allocated in accordancewith this Section and 40 CFR 97.343(a). 1.

# - 2.a


# ....

b. Certified Units. A certified and permitted unit subject to CAlR shall be allocated NO, 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 NO, allowances have been previously allocated until ozone season operating data are available for the three calendar years immediately preceding the deadline for submission ofthe 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. Repowered utility units will be allocated in the same manner as certified units in the control period of certification. Ozone season converted heat input is calculated

### as follows. i. For a solid fuel-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 979 Loursiena Register Vol. 34, No 06 June 20,2008generator(s) served by the unit multiplied by 7,900 BTUKWh and divided by 1,000,000 BTUIMMBTU. If the control period gross electrical output is unavailable, the hourly heat input for a specified calendaryear shall equal the annual gross electrical output, including the capacity factor, of the generator(s) served by the unit multiplied by 7,900 BTUKWh and divided by 1,000,000 BTUIMMBTU, and multipliedby 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. 

### ii. For a gaseous or liquid fuel-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 BTUKWh and divided by 1,000,000BTUh4MBTU. If the control period gross electrical output is unavailable, the hourly heat input for a specified calendar year shall equal the annual gross electrical output, including the capacity factor, of the generatods) served by the unit multiplied by 6,675 BTUKWh 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 attributedto each unit in proportion to the unit's share ofthe total control period heat input of all the units for the specified ozone season. c. Utility Units. The department shall allocate CATR NO, ozone season allowances to each CATR utility unit by multiplying the CAIR NO, ozone season budget for Louisiana (40 CFR 97.340), minus the allowances allocated under Subparagraph B.2.a of this Section, by the ratio ofthe ozone season adjusted heat input of the CAIR utility unit to the total amount of ozone season adjusted 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 heat input (in MMBTU) used with respect to the CAIR NO, ozone season allowance for each CAIR utility unit shall be established as follows. 

### 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 allocationsto 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. (a). If the unit is solid fuel-fired during a year, the unit's control period ozone season heat input for that year shall be multiplied by 100percent. (b) If the unit is liquid fuel-fued during a year, the unit's control period ozone season heat input for that year shall be multiplied by 60percent. (c). If the unit is not subject to Subclause B.2.cVi.(a) or (b) of this Section, the unit's control period ozone season heat input for the year shall be multiplied by 40 Dercent. ii. Aunit's control period ozone season heat input, fuel type, and total tons of NO, 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. 3.

# - 3.b



## .... 4. Reclassification of Units. When the ownership of a unit is transferred, the unit is reclassified accordingly as a utility or non-utility unit. The department will allocate future allowances using the new classification, beginning with the allocation submission deadline after the effectivedate of the unit reclassification. The electric public utility must notify the department of thetransfer ofownership.No changes will be made without written notification from the electric public utility.

C. Annual Sulfur Dioxide. Except as specified in this Section, the Federal SO2Model Rule, published in the 

### Code of 

### Federal Regulations at 40 CFR Part 96, July I, 2007, and
as revised at 72 FR 59190-59207, October 19, 2007, is hereby incorporated by reference, except for Subpart IIICAIR SO2Opt-in Units and all references to opt-in units.

D. 

### - E.



## ... AUTHORITYNOTE: Promulgated in accordance with R.S. I 30:2054.

HISTORICALNOTE: Promulgated by the Department of Environmental Quality, Office of the Secretary, Legal Affairs Division, LR 32: 1597 (September 2006), amended LR 33:1622 (August 2007), LR 33:2083 (October 2007), LR 34:978 (June 2008) Herman Robinson, CPM Executive Counsel

Department 

### of Environmental Quali Onceofthe Secretary Legal Affairs Division 

# \ 

# /

1n\ by 

### R/ 007 (LAC 3



### . 3931; V.3099; .2301,4901,

and 490 nd XV. 15 MM007ft)
Editor's Note: This Rulc

# x;:;:;

I correctacitation error. The Rule may be vi in its entirety on pages 865- 867 inthe May 20,2008

R.S. 30:2001 et of the Administr

7 (Log#MM007ft).

7-47 1, July 1, 2007; and 72 'FR 40245-40250,

Louisiana Register Vol. 34, No. 06 June 20. 2008