Banking and Offsets

Emission Reduction Credits (ERCs) are banked in accordance with Regulation 2, Rule 4 (25 k PDF, 6 pgs). ERCs may be banked for the following pollutants: NOx, SO2, CO, POC, NPOC, particulate and PM10. ERCs are generated by reducing emissions beyond what is required by regulation, or by curtailing or shutting down a source. ERCs may be used to provide offsets for emission increases from a new or modified source, as required by Sections 302 and 303 of Regulation 2, Rule 2 (69 k PDF, 20 pgs). ERC banking certificates may be traded or sold to another facility for use as offsets for that facility.

Interchangeable Emission Reduction Credits (IERCs) are banked in accordance with Regulation 2, Rule 9 (38 k PDF, 11 pgs).  IERCs may only be banked for NOx.  NOx IERCs are generated by reducing the emission rate (mass emissions per unit of throughput) below what is required by regulation.  IERCs cannot be generated by curtailment or shutting down a source.  IERCs may only be used at the location at which they were generated.   Once banked, IERCs may be used as part of an Alternative Compliance Plan to comply with certain NOx rules.  Unlike ERCs, IERCs cannot be used as offsets.

The following policies and procedures apply for banking and offsets.