Emission Reduction Credits (ERCs) Frequently Asked Questions

To assist in providing information regarding issuance of Emission Reduction Credits (ERCs), AQMD provides the following information to interested parties. Be advised that it is the ERC applicant’s responsibility to understand all applicable ERC rules and regulations.

What application form should I use for ERC applications?
What is the filing fee for ERC applications?
What rules govern the generation of ERCs?
What are some of the primary requirements that govern the generation of ERCs?
Does the AQMD website provide general information on ERCs?
Can an ERC application be processed on an expedited basis?


What application form should I use for ERC applications?

Please use application Form 401 – Application for Emission Reduction Credit (ERC) Certificate of Title (PDF).

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What is the filing fee for ERC applications?

The filing fee for ERC applications is outlined under Rule 301 (PDF).

SUMMARY OF ERC PROCESSING RATES, BANKING, CHANGE OF TITLE, ALTERATION/MODIFICATION, CONVERSION TO SHORT TERM CREDITS AND RE-ISSUANCE
Fiscal Year &
Schedule
Banking Application Change of Title Alteration/
Modification
Conversion to Short Term Credits Re-issuance of Short Term Credits
FY 13-14
I
$3,591.71 $634.46 $634.46 $634.46 $634.46
 

The fiscal year (FY) starts July 1 of each year.

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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:

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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 SCAQMD 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.

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