Louisiana SIP: LAC 33:III Ch 607. Determination of Creditable Emission Reductions; SIP effective 2002-09-27 (LAd12) to 2015-12-06
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. Determination of Creditable Emission Reductions
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. Acceptable Methods of Creation. Methods of reducing emissions to receive credit under this Chapter include, but are not limited to, the following:
1. installation of add-on control equipment;
2. change in process(es);
3. 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. shutdown of emission units or stationary sources;
5. production curtailment(s); and
6. reductions in operating hours.
B. 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 approve emission reductions as ERCs that are determined to be surplus, permanent, quantifiable, and enforceable, as defined in LAC 33.III.605.
2. Emission reductions may be creditable for use as offsets for up to 10 years from the date of the actual emission reduction to the atmosphere. An ERC is considered to be used for this purpose upon issuance of a permit that relies upon the ERC as offsets.
C. Procedures for Calculating the Surplus Emission Reduction. The following procedures shall be used in calculating the quantity of surplus air emission reductions. When considering NOx reductions, only the NOx inventory and ERC and pending ERC applications for NOx will be considered. Conversely, when considering VOC reductions, only the VOC inventory and ERC and pending ERC applications for VOC will be considered.
1. If the design value for the nonattainment area is above the 1-hour national ambient air quality standard (NAAQS) for ozone, the department shall compare the current total point-source emissions inventory for the modeled parishes to the base case inventory except that beginning with the 2005 emissions inventory, this comparison shall be made to the base line inventory.
2. Calculate actual emissions during the baseline period.
3. Calculate adjusted allowable emissions during the baseline period. Allowable emissions shall be adjusted to account for all new or revised federal or state regulations adopted that will require, or would have required, all or a portion of the emission reductions that comprise the ERC application or ERC (in the case of a partial use of a previously approved ERC) at the time a permit application that relies upon the reductions as offsets is deemed administratively complete.
4. Quantify baseline emissions as follows:
a. for stationary sources located in ozone nonattainment areas:
i. if the design value for the nonattainment area is above the 1-hour NAAQS for ozone and the current total point-source inventory for the modeled parishes exceeds the base case inventory or base line inventory, as appropriate per Paragraph C.1 of this Section, baseline emissions shall be the lower of actual emissions, adjusted allowable emissions determined in accordance with Paragraph C.3 of this Section, or emissions attributed to the stationary point source(s) in question in the base case or base line inventory, as appropriate; or
ii. if the design value for the nonattainment area is not above the 1-hour NAAQS for ozone or the current total point-source inventory for the modeled parishes does not exceed the base case inventory or base line inventory, as appropriate per Paragraph C.1 of this Section, baseline emissions shall be the lower of actual emissions or adjusted allowable emissions determined in accordance with Paragraph C.3 of this Section; and
b. for stationary sources located in Calcasieu Parish or any parish redesignated as ozone nonattainment by the EPA after December 20, 2001, baseline emissions shall be the lower of actual emissions or adjusted allowable emissions determined in accordance with Paragraph C.3 of this Section.
5. Calculate allowable emissions after the reductions occurred.
6. Calculate the surplus emission reduction by subtracting the allowable emissions after the reduction occurred from the baseline emissions.
D. Adjustments for Netting. Emission reductions used in a netting analysis (i.e., to determine the net emissions increase as defined in LAC 33:III.504 or 509, as appropriate) that prevented the increase from being considered "significant" are not eligible for use as offsets. The quantity of emission reductions utilized to “net out” shall not be considered creditable.
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), amended by the Office of Environmental Assessment, Environmental Planning Division, LR 25:1622 (September 1999), LR 28:302 (February 2002).
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