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

§605.  Definitions
As amended in the Louisiana Register at LR 28:301 (February 2002).
Approved by EPA September 27, 2002 (67 FR 60877) effective September 27, 2002 (LAd12).

    A.  The terms used in this Chapter are defined in LAC 33:III.111 with the exception of those terms specifically defined as follows:

    Actual Emissions  --- the actual rate of emissions of an air pollutant from a source operation, equipment, or control apparatus.  Actual emissions shall be calculated using the actual operating hours, production rates, and types of materials used, processed, stored, or combusted during the baseline period.  Acceptable methods for estimating the actual emissions may include, but are not limited to, any one or a combination of the following:
        a.  emission factors based on EPA's Compilation of Air Pollutant Emission Factors (AP-42) or other emission factors approved by the department, if better source specific data is not available;
        b.  fuel usage records, production records, purchase records, material balances, engineering calculations (approved by the department), source tests, waste disposal records, emission reports such as emission inventory reports, SARA Title III, or MACT compliance certifications.

    Allowable Emissions  --- the emissions rate of a stationary point source calculated using the maximum rated capacity of the source (unless the source is subject to enforceable limits that restrict the operating rate, hours of operations, or both) and the most stringent of the following:
        a.  an applicable standard set forth in 40 CFR part 60, 61, or 63;
        b.  any applicable state implementation plan (SIP) emissions limitation, including those with a future compliance date;
        c.  applicable emission limitations specified as an enforceable permit condition, including best available control technology (BACT) and lowest achievable emission rate (LAER) requirements, including those with a future compliance date; or
        d.  applicable acid rain SO₂ and NOx control requirements as defined under Title IV of the 1990 Clean Air Act Amendments and subsequent regulations.

    Bank --- the repository for ERCs, including the ERC banking database.

    Bankable Emission Reductions  ---  reductions of NOx or VOC that meet the provisions of this Chapter at the time of review and approval.

    Banking  --- a system for quantifying, recording, storing, and preserving ERCs so that they may be used or transferred for use at a future date.

    Banking Database  --- the department database that records all ERC deposits, withdrawals, transfers, and transactions.

    Base Case Inventory  --- the aggregate point-source emissions inventory for either NOx or VOC from the nine modeled parishes, as modeled for the 2005 Attainment Plan and Transport Demonstration SIP dated December 2001, which includes 1997 actual emissions from point sources, banked ERC and pending ERC applications where the emission reduction occurred between January 1, 1990 and December 31, 1997, and adjustments for growth.  Separate inventories have been established for NOx and VOC.

    Base Line Inventory  --- the aggregate point-source emissions inventory for either NOx or VOC from the nine modeled parishes associated with the 2005 Attainment Plan and Transport Demonstration SIP dated December 2001, which accounts for emission reductions modeled to demonstrate attainment of the 1-hour national ambient air quality standard (NAAQS) for ozone.  Separate inventories have been established for NOx and VOC.

    Baseline Emissions  --- the level of emissions during the baseline period, as calculated in accordance with LAC 33:III.607.C.4, that occur prior to an emission reduction, considering all limitations required by applicable federal and state regulations, below which any additional reductions may be credited for use as offsets.

    Baseline Period  --- the period of time over which the historical emissions of a source are averaged.  In general, this period shall be a two-year period that precedes the date the emission change and that is representative of normal major stationary source operation.  A different time period shall be allowed upon a determination by the department that it is more representative of normal major stationary source operation.

    Current Total Point-Source Emissions Inventory  --- the aggregate point-source emissions inventory for either NOx or VOC from the nine modeled parishes compiled from Emission Inventory System (EIS) records and updated annually in accordance with LAC 33:III.919 plus any banked ERC and pending ERC applications originally included in the base case inventory that have not expired.

    Emission Reductions  --- the decreases in emissions associated with a physical change or change in the method of operation at a facility.

    Emission Reduction Credit (ERC)  --- an emission reduction approved by the department in accordance with the requirements of this Chapter that is surplus, enforceable, permanent, and quantifiable.

    Emission Reduction Credit Certificate (ERC Certificate)  --- a document indicating possession of a defined quantity and type of ERCs and issued by the department to the owner(s) identified on the certificate.

    Enforceable  --- as applied to emission reductions, means of making emission limits enforceable include source-specific SIP revisions, limitations contained in permits issued in accordance with LAC 33:III.Chapter 5, and EPA- issued or department-issued administrative orders or enforcement instruments such as compliance orders or settlement agreements.

    Modeled Parishes  --- the parishes of Ascension, East Baton Rouge, East Feliciana, Iberville, Livingston, Pointe Coupee, St. Helena, West Baton Rouge, and West Feliciana.

    Offset  --- a legally enforceable reduction, approved by the department, in the rate of actual emissions from an existing stationary point source, which is used to compensate for a significant net increase in emissions of NOx or VOC from a new or modified stationary source in accordance with the requirements of LAC 33:III.504 or 510.  To be valid, an offset must meet the definition of ERC.

    Permanent  --- as applied to emission reductions, the method of achieving the reduced level of emissions is fixed or ongoing.  For example, installation of permanent control equipment or elimination of emission units.

    Quantifiable  --- in reference to emission reductions, the amount, rate, and characteristics of the emission reduction can be estimated through a reliable method.  Quantification may be based on emission factors, stack tests, monitored values, operating rates and averaging times, process parameters, production inputs, modeling, or other reasonable measurement practices.  The same method of calculating emissions should generally be used to quantify emission levels both before and after the reduction.

    Stationary Point Source  --- any building, structure, facility, or installation that emits or may emit any air pollutant subject to regulation under the Clean Air Act.  For purposes of this Chapter, stationary point sources shall include fugitive emissions.

    Surplus  --- emission reductions that are voluntarily created for an emissions unit and have not been required by any state or federal law or regulation and are in excess of reductions used to demonstrate attainment of national ambient air quality standards at the time a permit application that relies upon the reductions as offsets is deemed administratively complete.

    Transfer  --- the conveyance of an ERC from one entity to another.  All banking transactions shall be recorded in the ERC banking database and shown as debits and credits for the appropriate entity(ies).

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), amended by the Office of Environmental Assessment, Environmental Planning Division, LR 25:1622 (September 1999), LR 26:2448 (November 2000), LR 28:301 (February 2002).

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