ERCs - Emission Reduction Credits

Emission Reduction Credits (ERCs) are necessary for the construction of new major emission sources, or sources undergoing expansion in regions that do not meet EPA standards for national ambient air quality (non-attainment regions).

Emission Reduction Credits are available for numerous environmental pollutants, such as nitrous oxide (NOx), volatile organic compounds (VOCs), particulate matter (PM), carbon monoxide (CO) and reactive organic gasses (ROGs), and are of particular concern to developers constructing heavy industrial facilities, new fossil-fuel power generation facilities, or refineries. ERCs must be acquired prior to the construction of a new facility, creating a competitive market.

ERCs are created in one of several ways.

1. The shutdown of a facility with a valid permit enabling them to emit a set quantity of emissions annually produces a number of Emission Reduction Credits equivalent to the number of tons emitted in one year.


2. Emission Reduction Credits may also be generated through the limitation of emissions in a non-attainment region through the limitation of the running capacity of the plant. After the plant operators have agreed to permanently curtail emissions and revised their operating permit to match the new emissions rate, ERCs equal to the emission reduction are generated.


3. They  can also be generated through the permanent reduction of emissions through voluntary installation of emission-reducing technology. Alternatively, the plant could make the switch to a new fuel source that has a lower annual emission rate than the original fuel. 

Spectron’s team of brokers brings years of experience in brokering Emission Reduction Credits (ERCs) our knowledge allows us to offer guidance to anyone seeking to do business in this marketplace.

Contacts
ERCs Enquiries: Mike Ferguson +1 360 892 3300