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A.  In developing a plan for the implementation of any guidelines for greenhouse gas emissions that the United States Environmental Protection Agency may issue under Section 111(d) of the Clean Air Act, the Department of Environmental Quality, in collaboration with and input from the Public Service Commission, may establish standards of performance for carbon dioxide emissions from existing fossil fuel-fired electric generating units.  Each standard of performance shall be:

(1)  Set for each category of existing fossil fuel-fired electric generating units based on the type of fuel burned by those generating units as provided in Subsection B of this Section.

(2)  Adjusted on a case-by-case basis as provided in Subsection C of this Section.

(3)  Implemented as provided in Subsection D of this Section.

B.  Except as provided for in Subsection C of this Section, the standards of performance established for existing fossil fuel-fired electric generating units shall be based on the following:

(1)  The best system of emission reduction that, taking into account the cost of achieving such reduction and any non-air quality health and environmental impact and energy requirements, has been adequately demonstrated for fossil fuel-fired electric generating units that are subject to the standards of performance.

(2)  Reductions in emissions of carbon dioxide that can reasonably be achieved through measures undertaken at each fossil fuel-fired electric generating unit.

(3)  Efficiency improvements and other measures that can be undertaken at each fossil fuel-fired electric generating unit to reduce carbon dioxide emissions from the unit without switching to other fuels, co-firing with other fuels, or limiting the utilization of the unit.

C.  In establishing standards of performance for each category of existing fossil fuel-fired electric generating units, the department shall consider in all cases whether to adopt less stringent standards or longer compliance schedules for such individual units than those provided for in the applicable federal rules or guidelines based on the following:

(1)  Consumer impacts, including any disproportionate impacts of energy price increases on lower income populations.

(2)  Unreasonable cost of reducing emissions resulting from plant age, location, or basic process design.

(3)  Physical difficulties with or impossibility of implementing emission reduction measures.

(4)  The absolute cost of applying the performance standard to the unit.

(5)  The expected remaining useful life of the unit.

(6)  The economic impacts of closing the unit, including expected job losses, if the unit is unable to comply with the performance standard.

(7)  The need to maintain the reliability of the electric grid.

(8)  Any other factors specific to the unit that should be considered by the department in establishing reasonable performance standards or reasonable compliance schedules.

D.(1)  The department may implement, to the maximum extent permissible, the standards of performance authorized by Subsection A of this Section through the regulatory mechanisms that provide flexibility in complying with such standards, including the averaging of emissions, emissions trading, or other alternative implementation measures that are determined to further the interests of Louisiana and its citizens.

(2)  The department’s plan for establishing and implementing standards of performance for existing fossil fuel-fired electric generating units shall be consistent with the provisions of this Section and may include alternative compliance options for meeting such standards to the extent that those compliance options:

(a)  Comply with a guidance document promulgated by the United States Environmental Protection Agency pursuant to Section 111(d) of the Clean Air Act and 40 C.F.R. part 60, Subpart B.

(b)  Are based on measures that can be implemented by the owners or operators of existing fossil fuel-fired electric generating units.

(c)  Are authorized by and consistent with all applicable provisions of state law.

E.  This Section shall be known and may be cited as the “Louisiana Carbon Dioxide Emission Fossil Fuel-Fired Electrical Generating Units Control Act”.

Acts 2014, No. 726, §1.