The fees are subject to change at the beginning of each fiscal year on July 1.

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What rules govern the generation of ERCs?

In order to obtain an ERC, an application must be filed for each existing source that is to be modified or permanently taken out of service. Rule 1309(PDF)(b) in part states:

“In order to obtain an ERC, an application (Form 401(PDF)) made in the form and along with supporting data and documents required by the Executive Officer or designee shall be submitted for each existing source that is to be modified or permanently taken out of service. The application shall be submitted no more than 180 days after the emission reduction occurs.”

To further your understanding of the requirements for ERC Banking applications, please familiarize yourself with the following rules:

•  Rule 1309 (PDF)

•  Rule 1306 (PDF)

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What are some of the primary requirements that govern the generation of ERCs?

The following are some of the primary requirements that govern the generation of ERCs:

• ERCs are evaluated on an actual emissions basis, not on a potential to emit basis.

• Per Rule 1309(PDF)(b)(4) & (5), emission reductions must be:

• real;

• quantifiable;

• permanent;

• federally enforceable;

• surplus; and

• not greater than the equipment would have achieved if operating with current Best Available Control Technology (BACT).

• Note the “payback” provision of Rule 1306(PDF)(e)(3). The ERC is equal to the prescribed emission credit at the facility minus the NSR balance, all Community Bank allocations, all Priority Reserve allocations, and all offsets obtained pursuant to the exemption provisions of Rule 1304(PDF). Due to the number of systems and complexity of transactions, an application must be filed to determine the payback.

Does the South Coast AQMD website provide general information on ERCs?

Yes. Please visit our Emission Reduction Credits page.

Can an ERC application be processed on an expedited basis?

Yes. ERCs may be processed on an expedited basis if such request is made using Form 400-XPP(PDF), available at our Permit Application Forms.