Can ERCs Be Transferred Or Sold Without Being Used As Offsets?
Emission reduction credits (ERCs) may be transferred by the owner of the certificate of ERCs in whole or in part by any means of conveyance permitted under state and federal laws. ERCs may be transferred, traded or sold to other parties even when the buyer does not intend to use them as offsets for nonattainment NSR emissions offset permitting requirements. In order to maintain an accurate registry, it is the responsibility of the seller and the buyer of the ERCs to submit a notification application to the Division of Air Quality (DAQ) to update the ERCs Registry whenever such transactions occur. Facilities should submit an application to notify DAQ that credits have been sold or transferred.

Transfer of certificates of ERCs:

  1. If the owner of a certificate of ERCs transfers the certificate to a new owner, the Director will issue a certificate of ERCs to the new owner and will revoke the certificate held by the current owner of record.
  2. If the owner of a certificate of ERCs transfer part of the ERCs represented by the certificate to a new owner, the Director will issue a certificate of ERCs to the new owner reflecting the transferred amount and will issue a certificate of ERCs to the current owner of record reflecting the amount of ERCs remaining after the transfer. The Director will revoke the original certificate of ERCs.
  3. For any transferred ERCs, the creator of the ERCs shall continue to have enforceable conditions in the appropriate permit to assure permanency of the emission reduction and shall be held liable for compliance with those conditions; the user of any transferred ERCs shall not be held liable for any failure of the creator to comply with its permit.

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How Are Emission Reduction Credits Purchased?
The role of the DAQ in the transfer will be limited to providing information on the documentation and registration of the ERCs and to providing technical assistance regarding possible future use of the credits being transferred. The DAQ will maintain a list of registered ERCs, the county where the reductions occurred, the date the reductions were effective, and contact information for the owner of each emission reduction credit. The DAQ will not be involved in the buying and selling of ERCs; therefore, companies or organizations interested in purchasing credits must contact the owners of the credits in order to negotiate terms and conditions surrounding the sale or transfer of ERCs.

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