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Louisiana SIP: LAC 33:III Ch. 6 Section 601. Background and Purpose; SIP effective 1999-08-02 (LAd03) to 2002-09-26

Regulatory Text:
Louisiana Administrative Code, Title 33 ENVIRONMENTAL QUALITY, Part III Air (LAC 33:III) Chapter 6. Regulations on Control of Emissions through the Use of Emission Reduction Credits Banking

§601.  Background and Purpose
Approved by EPA 07/02/99 (64 FR 35939) effective 08/02/99 (LAd03)

   A.  Background
      1.  Federal Register, Vol. 51, No. 233, Thursday, December 4, 1986, contained EPA's Emissions Trading Policy Statement; General Principles for Creation, Banking and Use of Emission Reduction Credits.  This Policy Statement replaced the original bubble policy (44 FR 71779, December 11, 1979) and describes emissions trading and sets out general principles EPA will use to evaluate emissions trades under the Clean Air Act and applicable federal regulations.  Emissions trading includes bubbles, netting, and offsets as well as banking (storage) of emission reduction credits (ERC) for future use. These alternatives do not alter overall air quality requirements; they give states and industry more flexibility to meet those requirements.  EPA endorses emissions trading and encourages its sound use by states and industry to help meet the goals of the Clean Air Act more quickly and inexpensively.  This regulation does not alter new source review requirements nor exempt owners or operators of stationary sources from compliance with applicable preconstruction permit regulations in accord with 40 CFR 51.18, 51.24, 51.307, 52.21, 52.24, 52.27, and 52.28.  Interested parties should, however, be aware that bubble trades are not subject to preconstruction review or regulations where these trades do not involve construction, reconstruction, or modification of source within the meaning of those terms in the regulations listed above.
      2.  Federal Register, Vol. 58, No. 34, Tuesday, February 23, 1993, sets forth proposed Economic Incentive Program (EIP) Rules.  Pursuant to sections 182(g)(3), 182(g)(5), 187(d)(3), and 187(g) of the 1990 Clean Air Act Amendments (CAAA), the use of EIPs is mandated for ozone nonattainment areas classified as severe or extreme.  It is optional in ozone nonattainment areas classified as marginal, moderate, or serious.  EIPs, or ERCs also serve to demonstrate that the state can meet certain emission reduction milestones required in the 15 percent VOC Reduction Reasonable Further Progress (RFP) Plan for Ozone Nonattainment Areas.
      3.  An Emission Reductions Credits Program has been identified as a contingency measure for Louisiana's 15 percent VOC Reduction RFP Plan.  As such, sources are prohibited from withdrawing any ERCs below the amount claimed by the LDEQ in its three percent contingency measure.

   B.  Purpose
      1.  This rule establishes the means of enabling sources to identify and preserve or acquire emission reductions for NSR offsets as well as for use in netting purposes.  The pollutants to which this rule applies are nitrogen oxides (NOx) and volatile organic compounds (VOC).  Interpollutant trading, for example, using a NOx credit to offset a VOC emission, is not allowed.
      2.  Act 570 of the 1993 Regular Legislative Session mandates the enactment of rules, by September 1, 1994, that provide for a vehicle scrappage program within the serious nonattainment area in exchange for emission reduction credits, banking, and trading criteria established by rule.

   AUTHORITY NOTE:  Promulgated in accordance with R.S. 30:2054.
   HISTORICAL NOTE:  Promulgated by the Department of Environmental Quality, Office of Air Quality and Radiation Protection, Air Quality Division, LR 20:874 (August 1994).