Use and Expiration

 

How Can I Use ERCs? What Is The Process For Using Registered ERCs? Can Credits For Clean Smokestack Reductions Be Used? Can Credits For One Pollutant Be Used As Offsets For Other Pollutants? Can Reductions Generated In One County Be Used In Another County? What Is The Lifespan Of Registered Credits? What Emission Credits Are Currently Available? Who Is Looking For ERCs?

How Can I Use ERCs?
Emission reduction credits (ERCs) may be used for any purpose allowed under:

1. Federal law;
2. Federal regulations;
3. State law; or
4. Rules adopted by the North Carolina Environmental Management Commission

ERCs may be used in the following manner:

1. Facilities holding emission ERCs may withdraw the emission reduction credits and may dispose of them in any manner consistent with the rules.
2. ERCs may be withdrawn only by the owner of record or by the Director of the Division of Air Quality (DAQ) and may be withdrawn in whole or in part. In the case of a partial withdrawal, the Director shall issue a revised certificate of ERCs to the owner of record reflecting the new amount of the credit and shall revoke the original certificate.
3. ERCs may be used for the following purposes:
   
   1. as offsets or netting demonstrations required by 15A NCAC 2D .0531 for a major new source of:
      1. NOx or VOC in a federally designated ozone nonattainment area; or
      2. PM2.5 SO2 in a federally designated PM2.5 nonattainment area;
   2. as offsets or netting demonstrations required by 15A NCAC 2D .0531 for a major modification to an existing major source of:
      1. NOx or VOC in a federally designated ozone nonattainment area; or
      2. PM2.5 or SO2 in a federally designated PM2.5 nonattainment area; or
   3. as part of a netting demonstration under the following conditions:
      1. The facility using the emission reduction credits is the same facility that created and banked the emission reduction credits, and;
      2. The emission reduction represented by the ERCs occurred within the seven-year period before construction commences on the modification; or
   4. to remove a permit condition that created an emission reduction credit.
4. ERCs generated through reducing emissions of one pollutant shall not be used for trading with or offsetting of another pollutant, for example emission reduction credits for VOC in an ozone nonattainment area shall not be used to offset NOx emissions.
5. ERCs used as offsets as required by 15A NCAC 2D .0531 within a federally designated ozone or PM2.5 nonattainment area shall have been created within that federally designated ozone or PM2.5 nonattainment area.

Limitations on use of ERCs:

1. ERCs shall not be used to exempt a source from:
   
   1. prevention of significant deterioration requirements (15A NCAC 2D .0530) unless the ERCs have been banked by the facility at which the new or modified source is located and have been banked during the period specified in 15A NCAC 2D .0530. This does not preclude the use of emission reductions not banked as emission credits to complete netting demonstrations;
   2. nonattainment major new source review (15A NCAC 2D .0531) unless the ERCs have been banked by the facility at which the new or modified source is located and have been banked during the period specified in 15A NCAC 2D .0531. This does not preclude the use of emission reductions not banked as emission credits to complete netting demonstrations;
   3. new source performance standards (15A NCAC 2D .0524), national emission standards for hazardous air pollutants (15A NCAC 2D .1110), or maximum achievable control technology (15A NCAC 2D .1109, .1111, or .1112); or
   4. any other requirement of Subchapter 15A NCAC 2D unless the ERCs have been banked by the facility at which the new or modified source is located. This does not preclude the use of emission reductions not banked as emission credits to complete netting demonstrations.
2. ERCs shall not be used to allow a source to emit above the limit established by a rule in Subchapter 15A NCAC 2D. (If the owner or operator wants to permit a source to emit above the limit established by a rule in Subchapter 15A NCAC 2D, he needs to follow the procedures in 15A NCAC 2D .0501 for an alternative mix of controls ["bubble"].)

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What Is The Process For Using Registered ERCs?

Application to withdraw credits from the ERCs Registry:
Facilities must submit an application to use credits listed in the ERCs Registry. Registry data cannot be updated until the appropriate permits have been modified through the normal permit review process. The credit withdrawal becomes permanent when the facility using the ERCs receives its air permit. In most cases, the source will need to obtain a source modification to make physical changes to a process or emissions unit or to add additional emissions units. If the facility does not have such a permit, it will need to submit the appropriate application. Refer to the DAQ application forms web page for guidance and forms regarding submittal of air permit applications.

Permit review to withdraw credits from the ERCs Registry:
Upon receipt of a complete application to use credits listed in the ERCs Registry and issuance of the appropriate permit modification, the DAQ will:

1. review each application to use credits listed in the ERCs Registry and verify the amount of withdrawn ERCs and the date the ERCs were withdrawn from the permitted sources list of registered ERCs;
2. update the ERCs Registry to reflect each verified withdrawal; and
3. issue a revised certificate of ERCs to the owner of record reflecting the new amount of the credit and revoke the original certificate of ERCs.

Facility may submit concurrent applications. For example, a facility may wish to submit emissions reductions for inclusion in the ERCs Registry and at the same time apply to have a portion of those emission credits withdrawn from the ERCs Registry for internal use. Likewise, a facility may have already agreed to sell a portion of the ERCs they are generating so the facility using those credits may wish to submit the application to use the ERCs at the same time the generating facility applies to have them added to the ERCs Registry. If a situation like this occurs, the DAQ recommends that the application to use the ERCs reference the pending application to submit the emission reductions. Since the ERCs are not truly available until the modification creating the permanence of the emission reductions is issued, the permit action that results in withdrawal of the credits may need to be placed on hold until the first permit is issued.

Submission of confidential records:
All information submitted to the DAQ will be made available to the public unless it is submitted under a claim of confidentiality. Claims of confidentiality must be made at the time the information is submitted to the DAQ, and must follow the requirements set out in 15A NCAC 2Q .0107 and under G.S. 143-215.3C. Failure to follow these requirements will result in a denial of the claim of confidentiality.

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Can Credits For Clean Smokestack Reductions Be Used?
No. Under the Clean Smokestacks Act passed by the N.C. General Assembly in 2002, credits for emissions reductions achieved while complying with the law must be turned over to the state. More information about the Clean Smokestacks Act, which applies to North Carolina's 14 coal-fired power plants, can be found at Clean Air Legislation.

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Can Credits For One Pollutant Be Used As Offsets For Other Pollutants?
No. ERCs can only be used to offset emissions of the same pollutant banked within the registry.

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Can Reductions Generated In One County Be Used In Another County?
Under the current state and federal laws, emission reductions are used for emission offsets within the nonattainment area where the reductions were generated. You may use ERCs generated in on county in another county only if the counties are located within the same nonattainment area where the reduction was generated.

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What Is The Lifespan Of Registered Credits?
Certified ERCs are permanent until withdrawn by the owner or until withdrawn by the Director of the DAQ. The Director may withdraw ERCs if the emissions reduction credits:

1. Have already been used;
2. Are incorrectly calculated; or
3. Achieved are less than those claimed.

DAQ has also identified the following that may effectively reduce the actual quantity of emission credits available:

1. Evidence of noncompliance with permit conditions imposed to make the emission reductions permanent and enforceable.
2. Misrepresentations made in:
   
   1. the application submitted;
   2. any other application on which the ERC is based; or
   3. data that support an application.
3. The State of North Carolina or U.S. EPA issues new regulations further limiting the emissions of a regulated pollutant. (For example, any state or federal statute, rule, or regulation decreases an allowable emission rate or otherwise requires a reduction in any registered pollutant, registered ERCs may need to be reduced to reflect the new, more stringent allowable emission limit or required reduction.

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What Emission Credits Are Currently Available?
The following tables summarize the ERCs that have been officially registered with the DAQ.

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Summary of available Emission Reduction Credits (ERC)
Facility ID, Name, Address & Contact Information	County	Pollutant	Reduction Date	Created(C) Transferred(T) Used(U)	ERC Balance (tons per year)	ID and Certification Date
Facility ID - 1300113 Name Kannapolis Energy Partners LLC Address One Lake Circle Drive Kannapolis, NC 28081 Contact Info.  Mr. Ralph Walker Peregrine Energy Corporation 220 North Main Street, Suite 603 Greenville, SC 29601 (864-242-4624)	Cabarrus	NOx	September 7, 2004 (Permit Rescission)   Transferred June 1, 2006   Transferred Sept. 14, 2006   Transferred June 27, 2007	C 460.1       T 245.0 (To Bowater)   T 120.0 (To Bowater)   T 95.1 (To Southern Power)	460.1       215.1     95.1     0.0	1300113ERC01 May 28, 2006 1300113ERC02 June 1, 2006   1300113ERC03 Sept. 14, 2006
Facility ID - 003336328 Name Bowater Coated Paper Division Address 5300 Cureton Ferry Rd. Catawba, SC 29740 Contact Info. Mr. Dale Herendeen Bowater Coated Paper Division 5300 Cureton Ferry Rd. Catawba, SC 29740 (803) 981-8009	York, SC	NOx	Transferred June 1, 2006     Transferred Sept. 14, 2006	T 245.0 (From Kannapolis)   T 120.0 (From Kannapolis )	245.0       365.0	003336328ERC01 June 1, 2006     003336328ERC02 Sept. 14, 2006
Facility ID - 3600098 Name Rauch Industries, Inc. Address Post Office Box 609 Gastonia, NC 28053 Contact Info. Mr. Richard A. Schlager Operations Manager Post Office Box 609 Gastonia, NC 28053 (704) 810-8951	Gaston	VOC	February 1, 2007   Transferred May 17, 2007	C 291.91     T 100.00 (To Southern Power)	291.91     191.91	3600098ERC01 April 23, 2007   3600098ERC02 May 17, 2007
Facility ID - 35203 Name Southern Power Co. Address 600 18th St. N. BIN-8198 Birmingham, Alabama 35203 Contact Info. Susan B. Comensky Director, Compliance & External Affairs 6600 18th St. N. BIN-15N 8198 Birmingham, Alabama 35203 (205) 257-0298	Valid Only In N.C.   Valid Only in N.C.     Valid Only in N.C.     Valid Only in N.C. Valid Only In N.C.	VOC     NOx       NOx   NOx NOx	Transferred May 17, 2007   Transferred June 27, 2007     Transferred Oct. 30, 2008     Transferred February 17, 2010 Transferred February 19, 2010	T 100.00 (From Rauch)   T 95.1 (From Kannapolis Energy)   T 45.39 (From Continental Tire)   T 36.9 (From Caraustar Mill Group) T 18.54 (From Continental Tire North America)	100.00     95.10       140.49     177.39 195.93	35203ERC01 May 17, 2007   35203ERC02 June 27, 2007     119-08-634-ERC02 Oct. 30, 2008   119-10-583-ERC02 February 17, 2010 119-10-634-ERC05 February 19, 2010
Facility ID - 0001 Name Exopack Advanced Coatings Address 700 Crestdale Road Matthews, NC Contact Info. Mr. John Lerch Director, Operations 700 Crestdale Road Matthews, NC 28105 (704) 847-9171	Mecklenburg	VOC	Created Oct. 1, 2007	C 4.16	4.16	119-08-001-ERC01 January 7, 2008
Facility Premise ID - 0634 Name Continental Tire North America, Inc. Address 1900 Continental Boulevard Charlotte, NC 28273 Contact Info. Mr. Michael Worthington Treasurer P.O. Box 5000 Fort Mill, SC 29716 Phone 704-583-8550 Fax 704-583-3934	Mecklenburg	VOC           VOC     NOx     NOx       NOx     NOx	Sept. 5, 2008             July 31, 2009     Sept. 5, 2008     Transferred Oct. 30, 2008     July 31, 2009     Transferred February 19, 2010	C 80.68           C 51.66   C 45.39     T 45.39 (To Southern Power)   C 18.54   T 18.54	80.68      80.68     132.34     45.39      0.00       18.54     0	119-08-634ERC01 Sept. 5, 2008    119-08-634ERC03 Oct. 30, 2008   119-08-634ERC04 July 31, 2009   119-08-634-ERC01 Sept. 5, 2008   119-08-634-ERC03 Oct. 30, 2008     119-08-634-ERC04 July 31, 2009   119-10-634-ERC06 February 19, 2010
Facility Premise ID - 0634 Name Caraustar Mill Group, Inc. Address 443 S. Gardner Ave. Charlotte, NC 28208 Contact Info. Mr. Donnie Mason General Manager Caraustar Mill Group, Inc. Post Office Box 668305 Charlotte, North Carolina 28266 donnie.mason@caraustar.com (704) 376-7474 x7111 or Mr. Stan Revell Plant Maintenance Manager (704) 519-9506	Mecklenburg	NOX	August 7, 2009   Transferred February 17, 2010	C36.9   T 36.9 (To Southern Power)	36.9   0	119-09-583ERC01
Facility Premise ID - 1300048 Name Phillip Morris USA, Inc. Address 2321 Concord Parkway South Concord, North Carolina Cabarrus County Contact Info. Mr. Anthony P. Puglisi Altria Client Services P.O. Box 85088 Richmond, Virginia 23285 804.335.2583	Cabarrus	VOC	July 2009	C	394	1300048ERC01 (October 25, 2013)
Facility Premise ID -  Name MNC Holdings, LLC, Matthews Incinerator Address 3250 Campus Ridge Road Matthews, NC Mecklenburg County Contact Info. Mr. Joe Mayernik MNC Holdings, LLC 4355 Ferguson Drive, Suite 280 Cincinnati, Ohio 45245 513.236.6161	Mecklenburg	NOX	February 2013	C	8.15	MNCERC01 (October 25, 2013)
Facility Premise ID -  Name MNC Holdings, LLC, Matthews Incinerator Address 3250 Campus Ridge Road Matthews, NC Mecklenburg County Contact Info. Mr. Joe Mayernik MNC Holdings, LLC 4355 Ferguson Drive, Suite 280 Cincinnati, Ohio 45245 513.236.6161	Mecklenburg	VOC	February 2013	C	0.10	MNCERC01 (October 25, 2013)

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Who is Looking for ERCs?
The following table summarizes the North Carolina companies that are looking for ERCs to use as offsets for expansion projects.

 

Summary of ERCs Wish List
County	Pollutant	ERC Amount Needed (tons per year)	Facility ID, Name, Address & Contact Information	Date Needed
There are currently no requests for emission credits.

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