BOBBY JINDAL 

GOVERNOR 

HAROLD LEGGETT, PH.D. 

SECRETARY 

gtate of Xouiriiana 

DEPARTMENT OF ENVIRONMENTAL QUALITY 

OFFICE OF THE SECRETARY 

July 1,2009 

Mr. Larry Starfield 

Administrator, 6RA 

US EPA Region 6 

1445 Ross 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 

Trahng Programs 

Submitted to: 

EPA Region 6 

1445 Ross 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 $5 1.123 Cp) and 5 1.123(ee) respectively). Louisiana 

will remain under the provisions of the FIP for the CAIR Annual NO, and Ozone Season NOx 

Trading Programs with the exception of those provisions related to NOx allowance 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 includes the 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-utility and vice versa; and 

5. adds language to cease allocation of NOx allowances to certified units that are not or have 

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 Galvez Building, Oliver Pollock Room Cl 1 1, at 602 N. 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 of the 

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 of 40 CFR 96, Subpart EE - CAIR NOx Allowance 

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 Interstate Rule (CAIR) NO, Trading Programs SIP Revision 

Final June 2009 
Rouge, Louisiana. Interested parties were invited to submit written or oral comments on 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 SIP Revision 

Final June 2009 
APPENDIX A - 

PUBLIC NOTIFICATION 
General Counse 

NOTICE OF INTENT 

/ 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 

of the 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 of NO, 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 Interstate Rule Requirements 

A. Clean Air lnterstate Rule (CAIR) Nitrogen Oxide 

(NO,) 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) 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 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 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. 

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 3 1,2004. 

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. The following definitions apply tofuel types. 

i. Solid Fuel-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. 

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, or the 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 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. 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 490 
utility unit expects to receive power under the contract 

within one year 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. If a 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 heat input of all 

the units for the 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 1,000,000 BTUIMMBTU. 

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. 

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 established as follows. 

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 

multiplied by 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 

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. 

ii. A unit's control period heat input, fuel type, 

and total tons of NO, emissions during a calendar year 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 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 of the transfer of ownership. 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 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 cone01 period 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 

49 1 Louisiana Register Vo1. 34, No. 03 March 20, 2008 
BTUKWh and divided by 1,000,000 BTUMMBTU, 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 1,000,000 BTU/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 1,000,000 BTUMMBTU, 

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 of this 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 to the 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. A unit'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 of the 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 SO2 Model 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 SOz Opt-in Units and all references to 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 

(August 2007), LR 33:2083 (October 2007), 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 proposed rule. 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 of AQ292. 

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 7 1292; State Ofice Building, 1525 

Fairfield Avenue, Shreveport, LA 7 1 I01 ; 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: Clean Air Interstate Rule 

I. ESlTMA7ED IMPLEMENTATION COSTS (SAVINGS) 'r0 

STATE OR LOCAL GOVEIUWDiT UNlTS (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 

governments as electrical ratepayers, as a result 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 generating units (EGUs). 

The department anticipates that very few units will change their 

modes of operation and that the effects of those few units that 

do may cancel out each other. There are so many variables and 

unknowns that no impact can be estimated, but the department 

expects the overall impact to be minimal. 

U. ESlTMATED EFFECT ON REVENUE COLLECTIONS OF STATE 

OR LOCAL GOWXNMENTAL UNlTS (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 increase of allowances 

will cause a decrease to other facilities, some owned by the 

same company with the petrbleum coke combustion. 

Affected repowered 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 

Louisiana Public 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 same company 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 facilities have the ability to put on 

control equipment and receive an 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. ESTIMATED Em ON COMPETITION AND EMPLOYMENT 

(Summary) There will be little or no effect on competition or 

employment 

Herman Robinson, CPM 

Executive Counsel 

0803#049 

H. Gordon Monk 

Legislative Fiscal Officer 

Legislative Fiscal Office 

\ NOTICE OF INTENT / 

\ Department of Environmental Quality 

Oflice of the Secretary 

Legal Affairs Division 

by Reference-2007 

V.3099; IX.2301,4901, 

XV. 15 17)(MM007ft) 

-1X and XI-XIII, 

302.4, 302.6(e), 355.40(a)( 

and Parts 417-471, July 1, 

n 10 CFR Part 

ust be adopted into the LAC. This mlem 

to maintain delegation, authorization, 

Louisiana Register Vol. 34, No. 03 March 20, 2008 
RECEIVED 

MAR 2 0 '%:;d 

Acadianars Daily Newspaper 

LDEQ/OSECILAD 

RECU~TIONDEVELOP~~ ~'NT S[Crl~jq THE ADVERTISER 

1100 Bertrand Drive 

LAFAYETTE, LA 70506 

PHONE: (337) 289-6300 

FAX : (337) 289-6466 

Rernender D. weatherspoon Account NO.: ~DEQRD 

LA Department of Environmental Quality Ad Number: 955239 

OSEC/Legal Affairs Division Ad Total: $91 -22 

No. of Lines: 206 Regulation Development Section Reference NO.: 

P. 0. BOX 4302 "To Insure proper credit please refer to your account number 

Baton Rouge, LA 70821-4302 andlor ad number when 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, in the 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: 11 1.5061 (~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 
CAPITAL CITY PRESS --U.-". ..-- 

I&' 

' I Publisher of 

THE ADVOCATE 

PROOF OF PUBLICATION 

The hereto attached notice was 

published in THE ADVOCATE, 

a daily newspaper of general circulation 

pub1 ished 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 Conuniss ion Expires : Indef 

Baton Rouge, Louisiana 

RECEIVED 

MAR 3 8 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. 30.2001 et seq a% ir, kcordaice wlth thipro- 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: 

~hls evlslon tor the 

Clean dr Interst te Rule (CAIR) nitmaen.oxade (NO?) 

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

DEQ - OSECILAD REG 3838388 

REMENDER WEATHERSPOON 

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 revlsin to 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 70374.645 N. ~otus rlve Suite C: Mandeville, LA 

70471. 
AFFIDAVIT OF PUBLICATION 

RECEIVED 

MAR I ,4 ;!l)l~ti 

LDEQIOS tl:/lfiD 

REGULATION DEVELUPMI:NT SECTION 

( A Correct Copy of Publication ) I I, Harold Constance. Classified Sales Manager -. 

NOTICE OF INTENT 

Department of 

Environmental Quality Office of the Secretary Liegal Aflaln Dlvlslon 

Clean Air lniirstate 

Rule 

(LAC 33:111.506) 

(4Q291J'2i.; 

Undei iii aulGiii'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 have been 

nitlated to, amehd the 

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 revislonl to 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. in the 

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 rrroof THE TOWN TALK, published at Alexandria, 

Louisiana do solemnly swear that the 

Public Notice (AQ292) 

advertisement, as per clipping attached, was 

published in the regular and entire issue of said 

newspaper, and not in any supplement thereof 

for one insertion(s) commencing with the issue 

dated March 12,2008 and ending with the 

issue dated March 12.2008. 

Subscribed and 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 New en! 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 .... . , NOTICE OF.'INTENT 

Deportment of Environmenral'~ualltj/ .Of. 

flce of the Secretqp Lesol Affalrsbivlsian'~ ., 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: 11 1..506 

(~0g.#AQ292j~rw -%.at. 

This revlslon for the 

Clean .Air 'Interstate 

Rule (CAI R):;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 Initial state allocation rule was prorn- ulsated on August '20, 

2007. Since that tlme the 

deportmentlha$ determined that some awroirvlemokind the depart. 

ment is also updating the regulations to include the lotest changes 

to the federal progrom. This rule Is olso.'being proposed as a revision to 

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 of Publication 

STATE OF LOUISIANA 

Parish of Calcasieu 

RECEIVED 

MAR 1 y20iJ8 

LDEO/OSEC/LAD 

REGLILATION DEVELOPMCI.IT SECTION 

Beforq me the undersigned authqty, personally came and appeared I / n - 

He/She is a duly authorized agent of 

LAKE CHARLES AMERICAN PRESS 

a newspaper published daily at 4900 Highway 90 East, 

Lake Charles, Louisiana, 70615. (Mail address: P.O. Box 2893 

Lake Charles, LA 70602) 

The attached Notice was published in said newspaper in its issue(s) 

dated: 

00429881 - $46.00 

March 14,2008 

~ulyLkuthoiized Agent 

Subscribed and swoin to before me on this 14th day 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 

proposed reau~afl~ri byAQ292. . Such.mmmentrr 

must tik,"rebel.ved no late? tKah-Mav 1 2008 

at 4ijo SITS!; .anb &"id. 

Barntarla Strebf. Lockport, LA 70374; 645 N. 

CPM , 

~recutive Cwnsel 
I.DEP/OSEC/LAO 

REGULATION DEVELOPMENT St 

I - Publisher of 

THE NEWS-STAR 

MONROE, LOUISIANA 

PROOF OF PUBLICATION 

The hereto attached advertisement 

Was published in the NEWS-STAR. 

lily newspaper of general circulation. 

Published in Monroe, Louisiana. 

Parish of Ouachita in the issues of: 

LEGAL AD DEPT. 

Sworn and subscribed before me by 

The person whose signature appears above in Monroe, LA on this 

NOTARY PUBLIC 

Steven b. Turner # 431 54 

RECEIVED 

MAR 1 9 ?ili 

Igfate allocation rvld 

i was 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 

REGULATION DEVELOPlrlENl 

, . ' .. :PR.OOF,.OF ,. . .. PUB;LICATION ,.. 7 I) n G,~!' .I. ,,,I: . 

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

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

Before me, the~dersi$ld:autH'dn~, &sona[ly came and appeared .. . . , , . ;-' ; ,C,. u,, -'.' 

.L . - '.. . , , I: . ' ': 

. . .- *< . *I, i' 

~l,@eas ~ritt~n;~er$$all$ &k*yn:,:to he, ...>.' . ? , . y:+ . *., .,:, :' .,,, 7, .'.'!. . . . ., :. 2, 

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

%G ?,kg .-., a;.L., d~ly~iworn, .. depdiel'&&says .* ,.: s ,*, ,I+ that she<is the Assistant to the 

c ja@i,siji@.~~dyebi siq&:.~~a~~r, 9f Thd Tim$$; ahd;,tbat the 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 dates to wit: 

March 12,2008 

(Signed) 

Sworn to and subscribed before me this 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 8 ZOO8 

LDEQIOSECILAD 

REGULATION DEVELOPMENT SECTION 
I 

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 OF ENVIRONMENTAL QUALITY 

INDEX 

EXAMINATION: 

None 

EXHIBITS: 

None 

REPORTER ' S PAGE 

 REPORTER"^ CERTIFICATE 

PAGE (S) : 

ASSOCIATED REPORTERS, INC. (225) 216-2036 
DEPARTMENT OF ENVIRONMENTAL 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. 

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 

2 4 remember that the purpose of this public 

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

ASSOCIATED REPORTERS, INC. 
DEPARTMENT OF ENVIRONMENTAL QUALITY 

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; 

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 .the permit 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 

August 20, 2007. Since that time the 

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. In this 

rulemaking the. department is also 

updating the r,egulations to include the 

latest changes to the federal program. 

This rule is also being proposed a s a 

revision to the CAIR S.tate Implementation 

Plan (SIP). 

D o e s a n y o n e care to comment on this 

regulation? 

If' not, the 

Thank' you for your atte,ntion an'd 

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.28 of 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 

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

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 OF ENVIRONMENTAL QUALITY 

C E RT I F I CAT.ION 

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 the proceedings had 

6 herein, taken downby me and transcribed 

7 under my supervision, to.the best 0.f my 

I 8 

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

I 9 place hereinbefore noted, in the above 

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 

14 p r o v i s i o n s o f R.S. 37:2551 et seq. in and 

15 

for the state of Louisiana; that I am not of 

16 counsel nor related to any of the counsel of 

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 . . 

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) 216-2036 
Department of Enviromental Quality April 24, 2008 In Re: Clean Air 1nkfstate Rule Log #: AQ292 

Paoe 1 

EXHIBITS 3 : 5 

additional 5:25 

federal 5:9 6: 1,14 proceeding 7: 1 1,16 

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 1:14 2:7 

recertified 5:21 

before 1: 19 7:7 determined 6:8 reclassification 

CAlR5:6,10 6:1,4 remember 4124 

calculated 5: 14 interested 4:20 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 Interstate Rule ~og #: ~~292 

Page 2 . . 

. . 

S'2: 1 7: 1.. 

same 5: 14 7: 14 

Section 1:13 . 

Since6:7 . ' . 

some6:8 . . 

state 1 :3,20 6:3,6 

stenomask %:S. : 

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

. ~... 
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY 

REGION 6 

1445 ROSS AVENUE. SUITE 1200 

DALLAS. TX ,75202-2733 

APR 2 8 2008 

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

Office of the Secretary 

Legal Affairs Division 

Louisiana Department of Environmental Quality 

P.O. Box 4302 

Baton Rouge, LA 70821-4302 

RE: Comments on AQ292 - Louisiana's Proposed Revision to the State 

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

Oxide (NOx) Annual, NOx Ozone Season, and Sulfur Dioxide (SOz) Trading 

Programs 

Dear Dr. Schuerman: 

Thank you for the opportunity to review the proposed changes to the State 

hp1ementation Plan and the Louisiana Administrative Code (LAC) 33:ItI.506. The 

proposed action updates the Clean Air Interstate Rule provisions to address recent 

Federal rulemakings, revises and adds definitions specific to the Louisiana programs, and 

updates the Louisiana NOx annual and ozone season aIlocation methodologies. We 

greatly appreciate the time and attention your staff has devoted to processing this 

proposed rulemaking and your willingness to consult Region 6 during the rule 

development. I - I 

I Based on our review of the proposed SIP revision, we would like to submit the 

I- following comments for your consideration. 

1; Please clarify the definition of "Electric Public Utility" at LAC 33:m,506(A)(l). 

j This definition uses the phrase "by such facility" twice, and it is not clear which 

, type of facility is being referenced. II ! i 

2. We recommend that the reclassification of unit provisions at LAC 

33:III.506(A)(4) and (B)(4) be revised to clarify the date from which the "next 

allocation period" would be determined. We recommend .the following,language 

for your consideration: 

- RecycledlRWdWe *Pmted rrlUl Veptsble.011 Based lnkP on 1Wb Recyded Paper (40% Poslmnsurner) 

.. .. :.. : , , ...... , '. . .:.:..,.. , . .. . . :. ... _ . .. 

.. . 

- 
Reclassification of Unita. 'when the o&hip of a unit is transferred, the 

unit is reclassified accordingly as a utility or non-utility unit. The 

department will allocate fuhm allowances using the new classification 

beginning with the allocation subdssion deadline after the effective date 

of the unit reklassification. The electric public utility must notify the ,.' 

department of the transfer of ownerihip. No changes will .be made 

, without written notification from the electric public utility. 

1 

It is our understanding that the allocation provisions for NOx ozone season CAJR 

allowances at LAC 33:II1.506(B)(2)(b)(i) and (ii) are intended to create a 

hierarchy of preferences; the LDEQ prefers to use control period gmss electrical 

output for the calculation but if this infomation is not available the calculations 

will be performed with annual gross electrical output. We recommend the 

following clarification to LAC 33:DI.S06@)(2)(b)(i) to capture the Louisiana 

Department of Environmental Quality (LDEQ) inkint in the solid fuel-fired 

allocation provisions: 

For a solid .fuel-fued unit, the hourly heat input for a specified calendar 

year shall equal the control period gross electrical output, including the 

capacity factor, of the generators(s) served by the unit multiplied by 7,900 

BTLT/KWh 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, of the generators(s) served by the unit multiplied by 7,900 

BTUJKWh and divided by 1,000,000 BTU/MMBTU, and multipIied by 

5/12. 

In addition to the hierarchy clarification discussed above, we note there is a 

typographicaI error in the proposed allocation provisions for gaseous and liquid 

fuel-fired units at LAC 33:IU.506(B)(2)(b)(ii) such'that the annual gross electricaI 

output is calculated with the solid fuel-fired adjustment. We recommend the 

following language: 

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 generators(s) served by the unit 

multiplied by 6,675 BTUIKWh and divided by 1,000,000 BTU/MMBTLT. 

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 generators(s) served by the 

unit multiplied by 6,675 BTLTIKWh and divided by 1,000,000 

BTU/MMBTU, and multiplied by 5/12. 

The proposed revision to LAC 33.ILI.506(C) should include the most recent Code 

of Federal Regulations (CFR) publication date for the Federal SO2 Model Rule at 
40 CFR Part 96 and all EPA rulemakings subsequent to the CFR publication; 

Please update the CFR publication date to July 1,2007, instead of July 1,2006. 

Thank you for the opportunity to provide comments. Please note that these 

comments do not constitute fin@ determinations concerning approvability of the 

Louisiana CAIR NOX Annual, N& Ozone Season, or S& Trading Programs SIP 

revision. We look forward,to working with LDEQ as yiiu move forward in 

responding to these comments and finalizing the Louisiana CAJR SIP. If you 

have any questions, please call Ms. Adina Wjley of my staff at (214) 665-2115. 

Jeff Robinson 

Chief 

Air Pennits Section 
Page 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 Statement arguments: 

FOR: [The reason supporting WHY the suggestion in the comment should be adopted by DEQ. 

Usually this is the commentets perspective.] 

AGAINST: rhe reason WHY the department feels the suggestion should NOT be adopted.] 

Use these standardized statements where you feel they may be appropriate: 

COMMENT 1 : 506.A. 1 - Clarify the definition of Electric Public Utility. This 

definition uses the phrase "by such facility" twice, and it is not 

clear which type of facility is being referenced. 

FORIAGAINST: The department agrees with the comment; no arguments are 

necessary. 

RESPONSE 1 : The department will insert language to clarrfy the definition. 

I COMMENT 2: 506.A.4, 6.4 - Revise these Paragraphs to clarify the date from 

which the next allocation period would be determined, as follows: 

"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 effective 

date of the unit reclassification. The electric public utility must noti@ 

the department of the transfer of ownership. No changes will be made 

without official notification from the electric public utility." 

FORIAGAINST: The department agrees with the comment; no arguments are 

necessary. 

RESPONSE 2: The department will clarify the timeframe when allocations will be 

re-calculated based upon changes in classification. 
Page 2 of 4 

AQ292 Summary 

May 2,2008 

COMMENT 3: 506.B.2.b.i - In order to clarify the department's intent that there 

be a hierarchy of preferences for calculating ozone season heat 

input, change 506.B.2.b.i to the following: 

"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 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, of the 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 arguments are 

necessary. 

RESPONSE 3: The department will clarify that when allocating ozone season 

NOx allowances, the preference is to use control period gross 

electrical output when it is available over calendar year gross 

electrical output. 

COMMENT 4: 506.B.2.b.ii - There is a typographical error in this Clause such 

that the annual gross electrical output for gaseous or liquid fuelfired units is calculated using the solid fuel-fired adjustment. Also, 

in order to clarify the department's intent that there be a hierarchy 

of preferences for 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 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 generator(s) served by the unit multiplied by 6,675 BTUIKWh and 

divided by 1,000,000 BTUIMMBTU, and multiplied by 511 2." 

FORIAGAINST: The department agrees with the comment; no arguments are 

necessary. 

RESPONSE 4: See Response 3 and the typographical error will be corrected. 

Page 4 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 Protection Agency 
gated LR 30:233 (February 2004), amended by the 

Amount of Required Financial Security 

Office of Environme 

of the Secretary, Legal A 

AUTHORITY NOTE: P 

30:2001 et 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 3 1 :25 16 (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 Environmental Quality 

Omce of the Secretary 

Legal Affairs Division 

Clean Air Interstate Rule (CAIR) Nitrogen Oxides (NO,) 

Trading Programs SIP Revision (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. 

Louisiana Register Vo/. 34, No. 06 June 20, 2008 
The 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 

1 IO(a)(Z)(D)(i) of the Clean Air Act (CAA). 

The public hearing for the revision to the SIP will be held 

on July 29, 2008, at 1:30 p.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 

concerning the 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 7082 1-43 14 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 SIP Revisions. 

A copy of the proposed SIP revision may be viewed at the 

following DEQ office locations from 8 a.m. to 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 7 11 01; 1301 Gadwall 

Street, Lake Charles, LA 70615; 111 New Center Drive, 

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

70374; 645 N. Lotus Drive, Suite C, Mandeville, LA 70471. 

Herman Robinson, CPM 

Executive Counsel 

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

\ POTPOURRI 

Department of Health and Hospitals 

Office of Public 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 ment of Natural 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 

of the 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 of NO, 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 

emissions of 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 

(NO3 Annual 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 597.14 1 (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 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. 

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 3 1,2004. 

Certified Unit or Contract-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 conked to apply to any co-generator who 

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 to fuel types. 

i. Solid Fuel-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 gaseous fuel. 

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 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. *** 

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 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. 

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 

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 generator is 

served by two or more units, then the gross elec2cal 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, 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 1,000,000 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. 

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 

multiplied by 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 

multiplied by 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 of NO, 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 after the effective date of the 

unit reclassification. The electric public utility must notify 

the department of the transfer 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 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 7 1 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 accordance with 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 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. 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, 2008 
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, 

of the generator(s) served by the unit multiplied by 7,900 

BTUKWh and divided by 1,000,000 BTUIMMBTU, 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 BTUKWh and divided by 1,000,000 BTUh4MBTU. 

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 

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 

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 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 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 

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. 

(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-fued 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.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. A unit'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 effective date of the 

unit reclassification. The electric public utility must notify 

the department of the 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 SO2 Model 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 SO2 Opt-in Units and all references to opt-in units. 

D. - E. ... AUTHORITY NOTE: 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 

(August 2007), LR 33:2083 (October 2007), LR 34:978 (June 

2008) 

Herman Robinson, CPM 

Executive Counsel 

Department of Environmental Quali 

Once of the Secretary \ 

1n\ 

Legal Affairs 

by R/ 

Division / 

007 

(LAC 3 . 393 1; V.3099; .2301,4901, 

and 490 nd XV. 15 MM007ft) 

Editor's Note: This Rulc x;:;:; I correct a citation 

error. The Rule may be vi in its entirety on pages 865- 

867 in the 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