Emission Reduction Credits (ERCs) and Discrete Emissions Reduction Credits (DERCs)
Emission Reduction Credits or "offsets" as they are commonly referred, are required by new, major sources of emissions as well as existing power generation or industrial processes that undergo significant changes that alter their emission profiles. ERCs can be created via facility shutdowns and by the curtailment or over-control of existing permitted facilities in non-attainment areas. There are several different types of ERCs depending upon which pollutant is to be offset; nitrogen oxide (NOx), volatile organic compounds (VOC), carbon moNOxide (CO), particulate matter of varying sizes, (PM10) or (PM2.5), and reactive organic gases (ROG). ERCs are required in regions where air quality fails to meet the National Ambient Air Quality Standards (NAAQS). Air quality classifications are broken down into Extreme/Severe, Serious, Moderate and Marginal. There are a number of non-attainment areas across the United States, most notably in the Northeast, Southern California and Texas. DERCs are offset similar to ERCs but are used in a defined time period and may only be used once.
TFS Energy's environmental products group is composed of policy and financial market veterans who have significant experience in structuring ERC transactions to enable the permitting of new facilities or to assist in the certification process for newly created ERCs.
