Emission Reduction Credits (ERCs)
Emission Reduction Credits (ERCs) are a property of the quantifiable and permanent reduction of criteria pollutants as designated by the EPA under the Clean Air Act: CO, NOx, SOx, VOC, PM10.
ERCs are allowances that are created by one or more of the following:
- the shutdown of existing emitting facilities
- curtailment of emissions from a facility
- improvement of controls to reduce pollution
The markets for ERCs are created by local governments in areas where air quality is below EPA standards for non-attainment areas, or areas where state environmental authorities aggressively implement a State implementation Plan ("SIP") to achieve Federal compliance. ERCs markets, therefore, are generally in-state (such as CA) or regional (such as HGB). Regional markets are centered primarily around high emission industrial and urban areas.
Discrete Emission Reduction Credits (DERCs)
Discrete Emission Reduction Credits (DERCs) are offsets similar to ERCs, but are for a discrete time period. The reductions are not necessarily permanent. Unlike ERCs, DERCs may only be used once. ERCs create allowances in tons/year, whereas DERCs are allowances that may only be used once.
States where Amerex covers ERC and DERC markets include but are not limited to: MA, CT, NJ, NY, PA, MO, IN, UT, TX, CA, IL, CO, and MD.