Emission Offsets/Emission Reduction Credits
The district allows for economic growth while reducing
the amount of pollutants released from the largest-emitting
Ventura County facilities through its emission offset
requirements detailed in District
Rule 26.2 part B and emission reduction credits (ERCs)
system. For more information, please see the
Q&A at the bottom of the page.
ERC Certificate by Company Report
This report includes the companies currently holding ERC
certificates, certificate numbers and credit balances. More
information on the reports and how to read them can be found
in the
explanatory notes.
Proposed ERC Certificates
The district must publish notice of preliminary decisions to
certify emission reduction credits with a 30 day comment
period, according to District
Rule 26.7 part B.4.
|
Proposed ERC Certificates |
|
Date |
ERC No. |
Notice |
|
04/09/2024 |
1245 |
Public Notice |
Annual Publications of the Costs of Emission Reduction
Credits
The following reports list the cost for ERC sale and
lease transactions that occurred each year.
New Source Review Report
District Rule 26.11 requires that the district prepare an
annual report demonstrating that its new source review
requirements for emission offsetting are equivalent to those
of the U.S. Environmental Protection Agency. For more
information regarding the annual report, please contact the
Engineering Division at
engineering@vcapcd.org or (805)
303-3688.
Q&A
What are offsets?
An offset is an emission reduction credit that is used
to mitigate an emission increase from a new, replacement,
modified or relocated emissions unit. The California Clean
Air Act requires that the district implement a permitting
program designed to achieve no net increase in permitted
emissions of certain pollutants and their precursors from
new or modified stationary sources. To achieve this goal,
all increases in permitted emissions must be offset by a
reduction beyond what is required by district rules, either
at the facility where the increase will occur or at another
permitted facility.
Emission offsets must be provided from a facility with a
similar operating schedule to that of the proposed facility.
District
Rule 26.2
part B.4 and
Rule 26.6 part F require that the
percentage of annual production that occurs each calendar
quarter, known as the quarterly profile, overlap at least
80% of the time at the two facilities.
Which pollutants need to be offset?
Offsets are required for certain increases in the
pollutants and their precursors for which the district has
not attained state or federal requirements. Those are
reactive organic compounds (ROC) and nitrogen oxides (NOx),
which react in the atmosphere to form ozone, as well as
particulate matter with a diameter up to 10 microns (PM10)
and sulfur dioxide (SOx), which reacts in the atmosphere to
form particulate matter.
District Rule 26.2
part B.1 requires that offsets be provided for
any increase in these pollutants for any new, replacement,
modified or relocated stationary emissions unit when there
is a potential to emit an amount equal to or greater than
five tons ROC or NOx or 15 tons PM10 and SOx per year on a
pollutant-by-pollutant basis.
What is an ERC?
An ERC is the banked emission reductions available for
use as an offset for emission increases from new,
replacement, modified or relocated emission units. They are
credits created by the largest-emitting companies when they
permanently reduce air emissions beyond what is required.
The reductions must be quantifiable and enforceable,
according to District
Rule 26.4. In most cases, companies
need to submit an application to the district to bank ERCs.
ERCs are measured in tons per year.
How are ERCs generated?
Common ways include shutting equipment down, reducing
fuel consumption, installing control equipment that isn’t
required, modifying equipment or processes, and replacing
equipment with lower-emitting versions.
What are ERC certificates?
They are documentation of credits for emission
reductions issued by the district and used for offsets.
How are the ERC certificates used?
Internal ERCs are used by the same company, and external
ERCs are sold or leased to other largest-emitting companies
to allow for an increase in permitted emissions from new or
modified facilities. The buying and selling of ERCs is a
private transaction between companies, but district staff
members should be notified so that they can make sure that
both parties understand all requirements.
How does this system decrease pollution?
When offsets are required because there is an emission
increase from a new, replaced, modified or relocated
emissions unit, the offset amount must exceed the emission
increase by 10% or 30% depending on the post-project
potential to emit on a pollutant-by-pollutant basis.
Also, the district ensures every offset trade results in an
air-quality benefit by issuing ERC certificates for a lower
amount of emissions than were reduced to create them. For
example, if the district certifies a company reduced
emissions by 10 tons a year, it may issue an ERC certificate
for 9 tons a year.
Which facilities are involved?
The facilities are those that emit more than five tons
of reactive organic compounds or nitrogen oxides or more
than 15 tons of particulate matter with a diameter up to 10
microns or sulfur dioxide a year. Less than 10% of
facilities that must obtain permits from the district fall
in this category.
For more information: Contact the Engineering Division at
engineering@vcapcd.org or (805) 303-3688.
