Federal ERC Equivalency Demonstration

Background

Emission offsets for increases of precursor organic compounds (POC) and nitrogen oxides (NOx) are required from both major and non-major facilities and modifications, pursuant to District Regulation 2-2-302.  Offsets may be provided using either contemporaneous emission reductions or emission reduction credits (ERCs) that have been formally deposited into the District's ERC bank. 

Federal guidelines require ERCs to be real, permanent, quantifiable, enforceable, and surplus.   To be surplus, ERCs are adjusted according to the following:

•  A District rule that is required for federal attainment demonstration purposes;
•  A District rule that has been approved into the State Implementation Plan (SIP);
•  New Source Performance Standard (NSPS); and
•  Maximum Achievable Control Technology (MACT) Standard.

Federal Equivalency

The following table summarizes the offset thresholds for POC and NOx emissions, based on facility emissions, in tons per year (TPY).

Note 1:  For the purposes of this demonstration, a major facility is a facility that has the potential to emit 100 tons per year or more of POC or NOx.

Note 2:  For the purposes of this demonstration, a major modification of a major facility is a modification at an existing major facility that will increase the facility’s emissions by 40 tons per year of POC or NOx (Regulation 2-1-204).