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Louisiana SIP: LAC 33:III Ch. 6 Section 607. Stationary Point Source Emission Reductions; 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

§607.  Stationary Point Source Emission Reductions
Approved by EPA 07/02/99 (64 FR 35939) effective 08/02/99. (LAd03)
   A.  Pollutants
      1.  Reductions in the following types of air emissions are eligible for banking pursuant to this rule:
         a.  volatile organic compounds (VOCs) in marginal or above ozone nonattainment areas; and
         b.  nitrogen oxides (NOx) in moderate or above ozone nonattainment areas.
      2.  The applicant may choose to speciate the pollutants according to individual compounds upon application to bank the ERCs.

   B.  Eligible Sources.  Sources that may create and bank emission reductions include, but are not limited to, the following permitted and unpermitted source types, regardless of the size of the source or the level of emissions:
      1.  stationary sources, including point sources, fugitive emission sources, and off-shore sources;
      2.  mobile sources, including on-road and off-road sources and marine vessels; and
      3.  area and indirect sources, including non-point sources and agricultural sources.

   C.  Acceptable Methods of Creation.  Methods of reducing emissions to receive credit under this rule include, but are not limited to the following:
      1.  enforceable installation of add-on control equipment (an actual emission reduction resulting from the installation of a level of control greater than that which is required by regulation, permit, or SIP provision if the applicant accepts a permit provision specifying a lower level of emissions);
      2.  enforceable change in process(es);
      3.  enforceable change in process inputs, formulations, products or product mix, or raw materials (an actual emission reduction resulting from more effective operation and maintenance of abatement and process equipment if the applicant accepts a permit provision specifying a lower level of emission);
      4.  enforceable reduction in actual emission rate(s);
      5.  enforceable shutdown of emitting units or facilities (an actual emission reduction resulting from a permanent shutdown of equipment after January 1, 1990, and which causes a loss of capability to produce emissions that were reported in the 1990 or later emissions inventory);
      6.  enforceable production curtailment(s);
      7.  enforceable reductions in operating hours;
      8.  other enforceable methods that might be applicable to eligible source types; and
      9.  enforceable reduction in emissions from area and mobile source types.

   D.  Timing of the Emission Reduction.  In order to be eligible for banking, emission reductions must occur after December 31, 1989.  Creditable emission reductions made prior to December 31, 1989, are not eligible for banking and can only be used for netting.

   E.  Geographic Areas.  Each bank is limited to a designated nonattainment area and separate accounts shall be maintained for NOx and VOCs.

   F.  Criteria for ERC Approval
      1.  Emission reductions shall be recognized as ERCs only after the approval of the department has been obtained.  The department shall certify emission reductions as ERCs that are determined to be:
         a.  surplus;
         b.  permanent;
         c.  quantifiable; and
         d.  enforceable.
      2.  Removal of Emission Reduction Credits either for use by a facility or to meet the 15 percent VOC RFP Plan (Section 182 (b)(1)(A) of the CAAA) will be done in accordance with Section 621.

   G.  Procedures for Calculating the Emission Reduction.  The following procedures shall be used in calculating the quantity of creditable air emission reductions:
      1.  define the baseline period.  The applicant shall first determine the two-year baseline period, as defined in LAC 33:III.605, over which the emission reductions are to be calculated;
      2.  quantify baseline emissions.  The baseline emissions shall be calculated by determining the actual emissions during each year of the baseline period.  The actual emissions for each year of the baseline period shall be averaged to determine the average baseline emission level;
      3.  calculate allowable future emissions.  The applicant shall calculate the allowable future emissions for the source.  The allowable emissions shall be based on the maximum emissions capacity of the source except that physical and operational limitations, including air pollution control equipment, restrictions on hours of operation or the type of material combusted, stored, or processed or other emission restrictions that will be included in a federally enforceable air permit or applicable rules and regulations may be considered in calculating the allowable future emissions; and
      4.  calculate the emission reduction credit.  The ERC shall be calculated by subtracting the allowable future emissions from the baseline emission level.

   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 20:877 (August 1994).

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