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these participants include local governments and area businesses. Examples of credits which may be applied include lowering the ozone concentration baseline used as a starting point in ozone attainment modeling, reducing the total amount of emission reductions needed for attainment, or in providing emission reductions needed for a State Implementation Plan (SIP) attainment demonstration. It is also understood that emission reductions achieved through individual measures will be donated to the regional 03 Flex efforts and will not be available for use in an emissions banking/trading program, with one exception. The City of Austin's electric utility (dba Austin Energy) intends to make additional NOx emission reductions beyond all state and federal requirements. These additional reductions are expected to result in the utility's having excess allowances on a regular basis. While Austin Energy may eventually use these excess allowances in a banking/trading program, the utility will not sell the allowances within the five-county Central Texas region. The 2007 NOx reduction resulting from Austin Energy's emission reduction program is, therefore, included in the total emission reductions to be achieved under this Agreement. The signatories' intent in entering into the 03 Flex Agreement is to pro actively implement and sustain air quality improvement strategies that are tailored to local conditions and are effective, practical, and measurable in reducing ground-level ozone concentrations. The Agreement should in no way be construed as a strategy to avoid or to defer a nonattainment designation under the 8-hour ozone standard. However, signatories urge EP A to adopt a policy of quickly restoring attainment status to areas that come into expedited compliance with the 8-hour standard as a result of an 03 Flex Agreement. 1.2 How 03 Flex Applies to Central Texas Participation in an 03 Flex Agreement is available for areas that: . currently are designated attainment and are monitoring attainment of the I-hour ozone standard, and . currently monitor either violations or attainment of the 8-hour ozone standard. Implementation of the 03 Flex Agreement is intended to reduce emissions which produce ozone, 03. Ozone is a form of oxygen with three atoms, instead of the usual two atoms. It is a photochemical oxidant and, at ground-level, is the main component of smog. Ozone is not emitted directly into the air but is formed through chemical reactions between natural and man-made emissions of volatile organic compounds (VOCs) and nitrogen oxides (NOx) in the presence of sunlight. High concentrations of ground-level ozone are damaging to human health and the environment. Reducing ozone levels requires reductions in ozone precursors, predominantly VOCs and NOx. The Clean Air Act directs EP A to develop and enforce standards for ambient air quality adequate to protect public health. Ground-level ozone, the pollutant of concern in 2