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Emission Reduction Credits

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The District's Emission Reduction Credit (ERC) program is in place due to and governed by an existing District regulation (Regulation XIV). The District maintains a registry of historical and available ERCs by rule.

ERCs are created in accordance with Rule 1402. The District does not have a formal ERC application; to obtain ERCs an owner/operator simply submits the information required by Rule 1402 and the ERC application fee required by Rule 313. In general, the District will act on an application within 30 days; this action will consist of an incomplete letter defining what is needed to render the application complete or a complete letter that addresses the issuance of ERCs and related public noticing.

Necessary for complete application (refer to Rule 1402(B)):

No formal application form exists. This information is usually submitted in a package with a cover letter.

  • Name, address and telephone number of the owner of the emissions unit
  • Name of contact person for ERC application
  • Information sufficient to identify the source and causation of the reductions
  • Information that shows that the reduction is Permanent
  • Commitment from the owner that the reduction is Enforceable (such as a proposed permit condition (preferred) or memorandum of understanding)
  • Information that shows that the reduction is Surplus (not otherwise required by law, rule, regulation or condition)
  • Information that allows and supports the quantification of the reduction (actual before and after emissions, source test results, calculation details)
  • Information that shows that the reduction is Real (including proof that the actual emissions before reduction were reported to the District as part of a criteria emissions inventory report)
  • Application fee

The District will have to demonstrate the following for the reductions to become emission reduction credits:

  • Permanent
  • Enforceable
  • Surplus
  • Quantifiable
  • Real

The District issues physical certificates of ownership in response to complete applications (and the completion of the required public comment period). This certificate duplicates the information stored in the ERC Registry; the Registry is the official record, and the certificate can be lost without ramification. The District prefers to have the original certificate returned when those ERCs are consumed or reduced, but this is not mandatory as the certificate number will be voided in the Registry (and a new certificate issued when necessary).

District ERCs are issued and tracked in units of pounds per year. The District does not have an ERC exchange or trading program (such as the SCAQMD RECLAIM program). The value of a given ERC is determined by the buyer and seller (but the price paid must be reported to the District by Rule).

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