Regulatory Text:
Louisiana Administrative Code, Title 33 ENVIRONMENTAL QUALITY, Part III Air (LAC 33:III) Chapter 5.  Permit Procedures

Section 506. Clean Air Interstate Rule Requirements.
Updated with revisions adopted in Louisiana Register June 20, 2008 (LR 34:978 to 980)(AQ292)
Approved by EPA April 17, 2014 (79 FR 21631) effective June 16, 2014 (LAd45) LA028.
Regulations.gov docket EPA-R06-OAR-2009-0594

Unless otherwise indicated, paragraphs /definitions are as previously approved by EPA July 20, 2007 (72 FR 39741) effective September 18, 2007 (LAd24) and September 28, 2007 (72 FR 55064) effective September 28, 2007 (LAd25).


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

AQ292   §506.A;LAd45;LA028.06;AQ292;LR34:0978(6/20/2008)
   A. Clean Air Interstate Rule (CAIR) Nitrogen Ox1de
(NOx) Annual Program. This Subsection is adopted in lieu of
40 CFR 97.141 and 97.142 as promulgated under the CAIR
Federal Implementation Plan (FIP) NO, 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
apply, with the exception of §97.141 (Timing Requirements
for CAIR NOx Allowance Allocations) and §97.142 (CAIR
NOx Allowance Allocations). The provisions of this
Subsection state how the CAIR NO, annual allowances shall
be allocated in accordance with this Section and 40 CFR
97.144(a).

AQ292   §506.A.1;LAd45;LA028.06;AQ292;LR34:0978(6/20/2008)
      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.

AQ292   §506.A.1;LAd45;LA028.06;AQ292;LR34:0978(6/20/2008)
      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.

AQ292   §506.A.1;LAd45;LA028.06;AQ292;LR34:0978(6/20/2008)
      Certified Unit or Contract -- Repealed.

   Department –- the Louisiana Department of Environmental Quality.

AQ292   §506.A.1;LAd45;LA028.06;AQ292;LR34:0978(6/20/2008)
      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 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.

AQ292   §506.A.1;LAd45;LA028.06;AQ292;LR34:0978(6/20/2008)
      Fuel Types -- 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. ·
         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.

   LPSC -- the Louisiana Public Service Commission.

AQ292   §506.A.1;LAd45;LA028.06;AQ292;LR34:0978(6/20/2008)
      LPSC or Municipal Certification -- the process under
which the LPSC certifies, or the relevant municipal authority
approves, construction, conversion, or repowering ~f an
electricity-generating unit as being in the public convenience
and necessity. This process includes the certification or
approval of long-term contracts ~hat 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.

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

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

AQ292   §506.A.1;LAd45;LA028.06;AQ292;LR34:0978(6/20/2008)
      Utility Unit -- a certified unit that is in operation, a
previously-operational certified unit, a non-utility ujit
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.  Allocation of CAIR NOx Annual Allowances.  Total NOx allowances allocated per control period shall not be in excess of the CAIR NOx annual budget as found in 40 CFR 97.140 (35,512 tons per control period from 2009-2014 and 29,593 tons per control period thereafter).
         a.  Non-Utility Units.  For each CAIR non-utility unit, the NOx allowances shall be equal to the average of the actual NOx annual emissions of the three calendar years immediately preceding the year in which the control period allocations are submitted to the administrator.  The actual NOx annual emissions as reported in the emission inventory required by LAC 33:III.919 shall be used, except that the allowances submitted in 2007 shall use the actual NOx emissions for calendar years 2002, 2003, and 2004.  When data is not available in the emission inventory, data reported to the Federal Acid Rain Program shall be used.  When actual reported NOx annual emissions data are available for only two of the three calendar years immediately preceding the deadline for submission of the control period allocations, the average of the actual reported NOx annual emissions data for those two years shall be used.  When actual reported NOx annual emissions data are available for only one of the three calendar years, the actual reported NOx annual emissions data for that one year shall be used.  When no actual reported NOx annual emissions data for any of the three calendar years are available, no allocations shall be made under this Paragraph.

AQ292   §506.A.2.b to A.2.b.ii;LAd45;LA028.06;AQ292;LR34:0979(6/20/2008)
         b. Certified Units. A certified and permitted unit
subject to CAIR shall be allocated NOx allowances for the
control period in which the unit will begin operation, and for
each successive control period, for which no NOx
allowances have been previously allocated until operating
data are available for the three calendar years immediately
preceding the deadline for submission of the control period
allocations. Until a unit has three calendar years of operating
data immediately preceding the allocation submittal
deadline, the converted heat input as calculated in Clause
A.2.b.i 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
BTU/KWh and divided by 1,000,000 BTU/MMBTU. The
control period gross electrical output as stated in the
documentation presented for the LPSC or municipal
certification shall be used in this calculation. If a generator is
served by two or more units, then the gross electrical output
of the generator shall be attributed to each unit in proportion
to the unit's share of the total control period heat input of all
the units for the year.
            ii. For a gaseous or liquid fuel-fired unit, the
hourly heat input for a specified calendar year shall equal the
control period gross electrical output, including the capacity
factor, of the generator(s) served by the unit multiplied by
6,675 BTU/KWh and divided by 1,000,000 BTU/MMBTU.
The control period gross electrical output as stated in the
documentation presented for the LPSC or municipal
certification shall be used in this calculation. If a generator is
served by two or more units, then the gross electrical output
of the generator shall be attributed to each unit in proportion
to the unit's share of the total control period heat input of all
the units for the year.

AQ292   §506.A.2.c to A.2.c.ii;LAd45;LA028.06;AQ292;LR34:0979(6/20/2008)
         c. Utility Units.  The department shall allocate
CAIR NOx allowances to each CAIR utility unit by
multiplying the CAIR NOx budget for Louisiana (40 CFR
97.140), minus the allowances allocated under Subparagraph
A.2.a of this Section, by the ratio of the adjusted 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 CAJR NOx 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 NOx emissions during a calendar year shall
be determined in accordance with 40 CFR Part 97 and
reported in accordance with LAC 33:III.919.

      3.  Timing Requirements for CAIR NOx Annual Allowance Allocations

         a.  By April 30, 2007, the department shall submit to the administrator the CAIR NOx annual allowance allocations, in a format prescribed by the administrator and in accordance with Paragraph A.2 of this Section, for the control periods in 2009, 2010, and 2011.

         b.  By October 31, 2008, for the year 2012, and by October 31 of each year thereafter, the department shall submit to the administrator CAIR NOx annual allowance allocations, in a format prescribed by the administrator and in accordance with Paragraph A.2 of this Section, for the control period in the fourth year after the year of the applicable deadline for submission under this Section.

AQ292   §506.A.4;LAd45;LA028.06;AQ292;LR34:0979(6/20/2008)
      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.


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

AQ292   §506.B;LAd45;LA028.06;AQ292;LR34:0979(6/20/2008)
   B. Clean Air Interstate Rule (CAIR) Nitrogen Oxide
(NOx) Ozone Season Program.  This Subsection is adopted in
lieu of 40 CFR 97.341 and 97.342 as promulgated under the
CAIR Federal Implementation Plan (FIP) NOx Ozone
Season Trading Program on April 28, 2006, at 71 FR 25328-
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 NOx Ozone
Season Allowance Allocations) and §97.342 (CAIR NOx
Ozone Season Allowance Allocations). The provisions of
this Subsection state how the CAIR NOx ozone season
allowances shall be allocated in accordance with this Section
and 40 CFR 97.343(a).

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

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

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

AQ292   §506.B.2.b to B.2.b.ii;LAd45;LA028.06;AQ292;LR34:0979(6/20/2008)
         b. Certified Units. A certified and permitted unit
subject to CAIR shall be allocated NOx allowances for the
ozone season of the control period in which the unit will
begin operation, and for each successive ozone season in a
control period, for which no NOx allowances have been
previously allocated until ozone season operating data are
available for the three calendar years immediately preceding
the deadline for submission of the control period allocations.
Until a unit has three years of ozone season operating data
preceding the allocation submittal deadline, the converted
heat input as calculated in Clause B.2.b.i or ii of this Section
shall be used to allocate ozone season allowances for the
unit. The certified unit shall be treated as a utility unit for
purposes of this allocation, except that ozone season
converted heat input shall be used instead of ozone season
adjusted heat input. 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
generator(s) served by the unit multiplied by 7,900
BTU/KWh and divided by 1,000,000 BTU/MMBTU. 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
BTU/KWh and divided by 1,000,000 BTIJ/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.
            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 BTU/KWh and divided by 1,000,000 BTU/MMBTU.
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 BTU/KWh and divided by 1,000,000 BTU/MMBTU,
and multiplied by 5/12. The control period gross electrical
output as stated in the documentation presented for the
LPSC or municipal certification shall be used in this
calculation. If a generator is served by two or more units,
then the gross electrical output of the generator shall be
attributed to each unit in proportion to the unit's share of the
total control period heat input of all the units for the
specified ozone season.


AQ292   §506.B.2.c to B.2.c.ii;LAd45;LA028.06;AQ292;LR34:0980(6/20/2008)
         c. Utility Units. The department shall allocate
CAIR NOx ozone season allowances to each CAIR utility
unit by multiplying the CAIR NOx ozone season budget for
Louisiana (40 CFR 97.340), minus the allowances allocated
under Subparagraph B.2.a of this Section, by the ratio of the
ozone season adjusted 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 NOx 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-fired during a year,
the unit's control period ozone season heat input for that year
shall be multiplied by 60 percent.
                (c). If the unit is not subject to Subclause
B.2.c.i.(a) or (b) of this Section, the unit's control period
ozone season heat input for the year shall be multiplied by
40 percent.
         ii. A unit's control period ozone season heat input,
fuel type, and total tons of NOx ozone season emissions
during a calendar year shall be determined in accordance
with 40 CFR Part 97 and reported in accordance with LAC
33:III.9 I 9.

      3.  Timing Requirements for CAIR NOx Ozone Season Allowance Allocations

         a.  By April 30, 2007, the department shall submit to the administrator the CAIR NOx ozone season allowance allocations, in a format prescribed by the administrator and in accordance with Paragraph B.2 of this Section, for the control periods in 2009, 2010, and 2011.

         b.  By October 31, 2008, for the year 2012, and by October 31 of each year thereafter, the department shall submit to the administrator the CAIR NOx ozone season allowance allocations, in a format prescribed by the administrator and in accordance with Paragraph B.2 of this Section, for the control period in the fourth year after the year of the applicable deadline for submission under this Section.

AQ292   §506.B.4;LAd45;LA028.06;AQ292;LR34:0980(6/20/2008)
         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.


Section 506(C).  Clean Air Interstate Rule Requirements—Annual Sulfur Dioxide.

AQ292   §506.C;LAd45;LA028.06;AQ292;LR34:0980(6/20/2008)
   C. Annual Sulfur Dioxide. Except as specified in this
Section, the Federal S02 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 III –
CAIR S02 Opt-in Units and all references to opt-in units.


Section 506(D).  Documentation.

   D.  Copies of documents incorporated by reference in this Section may be obtained from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20242 or their website, www.gpoaccess.gov/cfr/index.html; from the Department of Environmental Quality, Office of Environmental Services, Air Permits Division; or from a public library.


Section 506(E).  Modifications or Exceptions.

   E. Modifications or Exceptions.  A copy of each report or notice or of any other documentation required by the referenced regulations (i.e., 40 CFR Part 96) to be provided to “the Administrator” shall be provided to the Office of Environmental Services, Air Permits Division, by the person required to make the submission to “the Administrator.”