Emission Reduction Credit (ERC) Services
AQMS has extensive experience in developing and implementing
market-based programs. We provide our clients with an understanding
of how regulatory pressures shape market-based opportunities.
Drawing on our broad experience in economics, regulatory analysis,
and emission credits, AQMS assists firms identify and carry out
environmentally sound and cost-effective air pollution control options.
The ERC market in SCAQMD is going through an overall modernization.
Recommendations to modernize the ERC system include the following
Use of Short-Term Credits
Expand the use of short-term credits such as MSERCs, ASCs,
and ERC shares, by allowing sources to combine short-term
credits together to create a stream of credits. Also, expand
the applicability of existing mobile and area source pilot
credit generation rules and develop new mobile and area source
credit generation rules that can be approved by CARB and EPA.
Allow a facility that is holding onto a stream of unused ERCs
to split the stream and sell the first few years of the ERC
stream to another facility. The shared portion of the ERC
stream can be used as a short-term credit. The remaining portion
of the ERC remains as a stream of ERCs at its original value.
SIP Offset Budget
Create a set-aside emission account in the State Implementation
Plan (SIP) that can be used for compliance with Regulation
XIII. SIP Offset Budget will provide a safety net ensuring
the availability of emission reductions for Regulation XIII
compliance purposes. Sources that elect to use ERCs from the
SIP Offset Budget must pay a fee, that will be used to replenish
emission reductions in the SIP Offset Budget. To ensure emission
reductions are replenished, another feature of the SIP Offset
Budget is backstop reductions.
In addition to the three major elements recommended to modernize
the ERC system, the following enhancements are also recommended:
- Issue all new ERCs in units of pounds
per year instead of pounds per day- Extend the ERC application
filing period from 90 to 180 days
Lower EIP environmental discount for mobile
or area source projects that reduce diesel particulate
- Standardize interpollutant trading protocols-
Discourage use of ERCs for non-Regulation XIII compliance
AQMS is working with the SCAQMD to help expand the
applicability of existing mobile and area source pilot credit generation
rules and develop new mobile and area source credit generation rules
that can be approved by CARB and EPA.To learn more about AQMS emission
credit programs, please contact us
at 310.478.6699 or email@example.com