ERCs, DERCs & VOCs

Emission Reduction Credits (ERCs) are allowances that are created by 1) the shutdown of existing emitting facilities, 2) curtailment of emissions from a facility, or 3) improvement of controls to reduce pollution. ERCs pertain to a variety of pollutants, including nitrogen oxides (NOx), particulate matter (PM-10), volatile organic compounds (VOCs), carbon dioxide (CO2) and reactive organic gases (ROGs). ERCs must be legally certified and are usually expressed in tons per year.

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 allowance that may only be used once).