Overview

The voluntary ERC Banking Program commenced in January 2009 with the promulgation of Ohio Administrative Code (OAC) Chapter 3745-111. The Division of Air Pollution Control's (DAPC) rules establish a voluntary statewide ERC Banking Program that creates a consistent method for generating and transferring ERCs for future use in offsetting emissions in Ohio's nonattainment areas (PM 2.5 and eight-hour ozone). The ERC Banking System tracks the generation, transfer and use of ERCs for nitrogen oxides (NOx), volatile organic compounds (VOCs), sulfur dioxide (SO2), fine particulate (PM2.5), carbon monoxide (CO) and lead (Pb).

DAPC created the ERC Banking Program to assist large air pollution sources, or "major" facilities, in obtaining emission offsets for their New Source Review (NSR) requirements. The emission offset rules found in OAC Chapter 3745-31 require any newly constructed or modified "major" source to offset their emission increases with creditable emission reductions from an existing source located in a similar geographical area.

As a participant of the ERC Banking Program you must submit a Generation Notification and Deposit Form (ERC Form -1) to Ohio EPA if you believe you have generated creditable emission reductions (ERCs). Ohio EPA will review the information on the Generation Notification and Deposit Form (ERC Form -1) to confirm the completeness and accuracy of the submitted information. Then we will post the amount of ERCs available by verification status (either verified ERCs or un-verified ERCs), by pollutant and by county, accompanied with the current owners contact information for the public to view. Another party may contact the current owner of available verified ERCs listed on our webpage to negotiate a transfer (un-verified ERCs may not be transferred under the ERC banking program rules prior to verification by Ohio EPA). Participants in the ERC Banking Program will submit an ERC Transfer Notification (ERC Form - 2) to Ohio EPA when transferring ERCs between two parties. Only the current owner of ERCs may use the ERCs for offsetting emissions during the NSR process. When you are ready to use verified ERCs for the purpose of offsetting emissions, submit a Use Notification Form (ERC Form -3) to Ohio EPA for review. As a participant in the ERC Banking Program, please consult ERC Fact Sheet and OAC Chapter 3745-111 for details on all program requirements.

For questions or comments concerning this page, please contact Briana Hammond by email at Briana.Hammond@epa.ohio.gov or phone at (614) 644-3698.

ERC Forms and Instructions

As a participant of the ERC Banking Program, you must utilize these required forms when submitting ERC generation, transfer or use requests to Ohio EPA Division of Air Pollution Control (DAPC). Submit individual forms for each facility requesting to generate, transfer or use ERCs. Complete and submit forms to the Ohio EPA ERC Banking Program coordinator. Only written notice, rather than a form, is required if you are requesting to withdrawal ERCs from the ERC Banking Program.

The forms and instructions are currently in draft format and will be finalized in the near future. Ohio EPA will accept the draft version of the below forms.

Download Forms

ERC Generation Notification and Deposit Form (ERC Form -1) [DOC]
ERC Transfer Notification Form (ERC Form - 2) [DOC]
ERC Use Notification Form (ERC Form -3) [DOC]

Download Instructions

ERC Generation Notification and Deposit Instructions for (ERC Form -1) [PDF]
ERC Transfer Notification Instructions for (ERC Form - 2) [PDF]
ERC Use Notification Instructions for (ERC Form -3) [PDF]
ERC Flow Chart [PDF]

Generation and Deposit

How can I generate ERCs?

Emission reductions creditable as ERCs may be generated by a number of emission reduction techniques. Keeping in mind that the reduction meets the minimum requirements of being surplus, quantifiable, permanent and federally enforceable, ERCs can be generated with one of the following techniques:

• Permanent shutdown of an existing air pollution source or facility
• Permanent curtailment in production or operating hours of an existing air pollution source or facility
• The installation and operation of air pollution control equipment
• New technologies, materials, processes or process equipment modifications
• Incidental emission reductions resulting from reductions of a collateral pollutant
• Mobile source reduction determined on a case-by-case basis

If you want Ohio EPA to verify your emission reductions as creditable emission reductions (verified ERCs) in accordance to OAC Chapter 3745-111, then request to generate verified ERCs on your Generation Notification and Deposit Form (ERC Form -1).  Verified ERCs may be transferred under the ERC Banking Program and used for offsetting emissions. However; if you do not want Ohio EPA to verify your emission reductions, but you want an estimated amount of ERCs deposited in the ERC Bank, then you may request to generate un-verified ERCs on your Generation Notification and Deposit Form (ERC Form -1). Un-verified ERCs may not be transferred or used for the purpose of offsetting emissions under the ERC Banking Program until the completion of Ohio EPA verification. 

How should I calculate ERCs so they are quantifiable?

A source generating ERCs must use a calculation method that is creditable, accurate, workable, enforceable and replicable. Ohio EPA prefers a facility utilize direct measurement techniques, when available, before applying indirect methods. Facilities may use the following methods in calculating ERCs.

• Continuous emission monitoring, stack testing, sampling of fuels and materials or other direct measurements
• Calculations using equations that are a function of process and control equipment
• Mass-balance calculations
• Emission factors, emission calculation methods or emission quantification protocols approved by Ohio EPA
• Ohio EPA may accept other methods of quantification on a case-by-case basis

Note: If more than one emission quantify method is available, Ohio EPA expects participants to use the most accurate method available to do this calculation.

When can I use my annual fee emission report to generate ERCs?

Verified ERC Generation
If verified ERCs are generated from an acceptable emission reduction technique at a Title V or synthetic minor Title V facility, then you may use your annual emission fee report to submit ERC calculation data in certain cases. There may be instances that Ohio EPA will need more information than what is provided on an annual fee emission report in order to complete the verification process. It will be necessary to ensure the fee emission report provides all the information necessary for quantification and covers a 24-month period that is most representative of normal operations, as approved by Ohio EPA. If all necessary information is not contained in the fee emission report, it will be necessary to provide supplemental information. Currently Ohio EPA is developing a guidance document on this topic to assist facilities in understanding what information Ohio EPA will need.

For a facility that is not a Title V or synthetic minor Title V facility, annual fee emission reports will not represent sufficient data for verified ERC generation that constitute quantifiable baseline calculations (e.g., a range of emissions is not considered quantifiable). You must use actual operating hours, productions rates and types of materials processed, stored or combusted during the selected time period to calculate the actual emissions emitted during your selected baseline period.

Un-verified ERC Generation
When generating and depositing un-verified ERCs to the ERC banking system, you may use your annual fee emission reports to submit estimated emission data to the ERC Banking Program. Complete your emissions estimation information by emission unit and pollutant in Section XII of the ERC Generation Notification and Deposit Form (ERC Form-1).

How does Ohio EPA verify permanence of an emission reduction, and how are ERCs made federally enforceable?

1. Emission reductions achieved from methods other than permanently shutting down an air contaminant source (e.g, synthetic minor restrictions):
   
   These types of emission reductions must be made permanent and federally enforceable as part of the verification process by Ohio EPA. Typically, permanence and federal enforceability will be achieved by incorporating the appropriate requirements into a permit issued by Ohio EPA in draft and then final form.
    
2. Emission reductions from permanently shutting down an air contaminant source:
   
   This type of emission reduction will be made federally enforceable at the time of use by Ohio EPA. However, Ohio EPA will require certification from a responsible official/authorized individual of the permanence of the shutdown in order to participate in the program. Typically, federal enforceability will be achieved by incorporating the appropriate requirements into a permit issued by Ohio EPA in draft and then final form. 

What pollutants can be deposited into the Bank?

The ERC Banking System will track the generation, transfer and use of ERCs for nitrogen oxides (NOx), volatile organic compound (VOC), sulfur dioxide (SO2), fine particulate matter (PM2.5), carbon monoxide (CO) and lead (Pb). Keep in mind that only SO2, NOx, PM 2.5 and VOC ERCs are currently needed for the purpose of emission offsets in Ohio's nonattainment areas. 

How are ERCs deposited?

When completing Generation Notification and Deposit Form (ERC Form-1), consult the instructions for details on how to complete the form. In addition to completing the ERC Form-1, we encourage you to include any attachments to show how ERCs were quantified in accordance to OAC Chapter 3745-111.

ERC determination process

After Ohio EPAs review is complete, we will send the facility generating ERCs a letter with our determination, unless more information is needed. If additional information is needed for our determination then we will contact the technical contact listed on ERC Form -1 to request clarifying information before a determination letter is sent. Ohio EPA will process ERC generation notification requests in a timely manner.

If a facility requests to deposit verified ERCs, the facility generating ERCs will receive an ERC Certificate which will include an Unique ID and ERC generation summary. Un-verified ERCs will receive an ERC Certificate upon verification. Only the original generator that actually generated the emission reductions may submit un-verified ERCs via ERC Form -1 to participate in the program.   

Are mobile sources eligible to generate ERCs?

Mobile sources are eligible for ERC generation on a case-by-case basis. If you wish to generate ERCs from a mobile emission source please contact Ohio EPAs ERC Banking Program Coordinator for more information on how to proceed with the ERC generation process.

Is there an affected date for generating ERCs?

For ERCs to be approved, the emission reduction must be permanent, quantifiable, federally enforceable and surplus and for all ERCs generating NOx, VOC or PM 2.5 must have occurred after Dec. 31, 2005.

However, Ohio EPA has set aside NOx, VOC and PM 2.5 emissions in the ERC Bank for sources that permanently shutdown prior to Dec. 31, 2005, and want to generate ERCs. Please contact the Ohio EPAs ERC Banking Program Coordinator for a case-by-case determination in generating ERCs from permanent shutdowns in your area that occurred prior to Dec. 31, 2005.  

Frequently Asked Questions

Why must facilities obtain ERCs for emission offsets?

Sources undergoing nonattainment NSR permitting requirements must offset the increase in emissions from the proposed new construction and provide a net air quality benefit. The purpose of offsetting these emissions is to allow an area to move toward attainment of the National Ambient Air Quality Standards (NAAQS) while still providing for economic growth.

What are the benefits of participating in the program?

There are a number of benefits when participating in the ERC Banking Program:

• It assists with difficult future economic growth in Ohio's nonattainment areas.
• It assists large air pollution sources, or "major" facilities, in obtaining emission offsets for their NSR requirements in nonattainment areas. Any newly constructed or modified "major" source is required to offset their emission increases of criteria pollutants with ERCs from an existing source located in a similar geographical area.
• It is the easiest way to publicize your available ERCs to another party interested in acquiring your ERCs.
• Submitting your ERC generation data soon after an emission unit permanently shuts down will ease the data gathering stage of submitting ERC generation at a future date, such as when permitting occurs.

What counties are affected?

Ohio currently has designated nonattainment areas for the eight-hour ozone standard and the PM 2.5 standard. The entire state is in attainment for sulfur dioxide, nitrogen dioxide, carbon monoxide and lead.

The following are the specific nonattainment areas for those counties which the map identifies as "Partial County" nonattainment:

Adams County: Monroe and Sprigg townships
Ashtabula County: Ashtabula Township
Coshocton County: Franklin Township
Gallia County: Cheshire Township

Ohio has designated moderate and basic nonattainment areas for the eight-hour ozone standard. When obtaining ERCs for emission offsets in a moderate nonattainment area, you must obtain ERCs at a ratio of 1.15-to-1.0. For information on offset ratios, consult OAC Chapter 3745-31.

What if I am not in an affected county?

Because the air program and nonattainment designations continually change, Ohio EPA is not limiting participation in the ERC Banking Program to only those counties which are currently nonattainment. We are also not limiting participation to only those pollutants for which Ohio currently has nonattainment designations. Therefore, you may bank emissions from any of the criteria pollutants that are subject to the NAAQS (nitrogen oxides (NOx), volatile organic compounds (VOCs), sulfur dioxide (SO2), fine particulate (PM2.5), carbon monoxide (CO) and lead (Pb) generated in any county located in Ohio.

What is an Emission Reduction Credit?

An Emission Reduction Credit (ERC) represents a permanent, quantifiable, federally enforceable surplus reduction in air pollutant emission, measured in tons per year (1 TPY) that exceeds the amount of reduction required under state or federal law, regulation, attainment demonstrations or other enforceable mechanisms.

Emission reductions are considered permanent if they are assured for the life of the corresponding ERC through an enforceable mechanism such as a permit condition or a permanent shutdown. 

Emission reductions are considered quantifiable if the amount, rate and characteristics of the emission credit can be estimated through a reliable, reproducible method approved by Ohio EPA or U.S. EPA.

Emission reductions are considered surplus if they are included in the current emissions inventory and are not required by any local, state or federal law, regulation, emission limitation or compliance plan. Emission reductions necessary to meet new source review performance standards, LAER, RACT, BAT, BACT, permit or other emission limitations or emission reductions that have previously been used to avoid NSR through a netting demonstration are not considered surplus.

Some emission reductions may also be required to be made federally enforceable to become creditable. This would include reductions achieved from methods other than permanently shutting down an air contaminant source (e.g, synthetic minor restrictions). ERCs from permanently shutting down an air contaminant source will be made federally enforceable at the time of use by Ohio EPA. However, Ohio EPA will require certification from a responsible official/authorized individual of the permanence of the shutdown or curtailment in order to participate in the program.

What is a Verified ERC?

A verified ERC is an emission reduction that Ohio EPA has verified to be permanent, surplus, quantifiable and will become federally enforceable as described above. Verified ERCs may be transferred to another party and/or used for the purpose of emission offsets under the ERC banking program. We encourage companies to submit verified ERCs whenever feasibly possible because it reduces the uncertainty inherent in un-verified ERCs. It also increases the likelihood of another party wanting to buy or use your ERCs in the future. 

What is an Un-verified ERC?

An un-verified ERC is an emission reduction that an owner or operator of an existing source has identified as a creditable emission reduction that may be surplus, quantifiable and permanent but the emission reduction has not been verified or deemed creditable by Ohio EPA. Un-verified ERCs may not be transferred under the ERC Banking Program rules or used for the purpose of an emission offset under NSR rules until they are verified by Ohio EPA. It is important to note that Ohio EPA cannot make any guarantee to the validity of un-verified ERCs identified in the ERC Banking System.

Who may participate in the bank?

Participation in this program is voluntary. As a participant of the ERC Banking Program, any stationary source may submit a request to bank emissions reductions achieved at their facility as ERCs for any regulated pollutant. After banking ERCs with Ohio EPA, any person or facility that is a current owner of ERCs may transfer verified ERCs to another party tracked through the ERC Banking System. Because this is a voluntary program, the ERC Banking rules do not preclude obtaining emission reductions for use as emission offsets from sources outside of the ERC Banking Program. However, any un-verified ERCs obtained outside the ERC Bank must be verified prior to use for the purpose of emission offsets as part of Ohio EPA's normal NSR process.

Go to the Use and Withdrawal tab for more details on using ERCs.

What fees are associated with the ERC Bank?

There are no fees associated with participating in the ERC Banking Program. Please note, you must submit the required forms when participating in generating, transferring or using ERCs under this program.

What information will the ERC Bank contain?

The ERC Bank will contain the following information for each deposited ERC:

• Whether the ERCs are un-verified or verified ERCs
• The applicable criteria pollutant
• The quantity of ERCs
• The description of the source
• The contact name and information for the current owner of ERCs available for transfer or use
• The county in which the ERCs were generated
• The ERC generation date

What happens after I submit ERC generation information to Ohio EPA?

Once Ohio EPA's review is complete, a summary of the submitted generation information will be posted on this website under the ERC Banking System. Generated ERCs will be distinguishable as verified ERCs and un-verified ERCs. We suggest parties contact the current owners of the ERCs posted on the website directly. You do not have to consult with Ohio EPA until you are requesting transfer or use of ERCs contained in the ERC Banking System.

What is the lifespan of an ERC in the Banking Program?

ERCs that enter the ERC banking system are not subject to a static expiration period. However, there are a few factors that could cause ERCs to be discounted over time. Below are a number of scenarios in which ERCs could be discounted in the ERC Banking Program.

Ohio EPA may reduce the amount of ERCs if there is:

1. Any evidence of noncompliance with any permit conditions imposed to make ERCs permanent and federally enforceable
2. A failure to achieve in practice the emission reductions on which the ERCs are based upon
3. A misrepresentation made on an ERC generation notification form including supporting data entered therein or attached to or any subsequent submittal of supporting data
4. A need to achieve the NAAQS for Ohio State Implementation Plan (SIP) requirements

I have acquired a new facility. I would like to transfer ERCs from the previous owner to the new owner. What do I need to do?

You will need to first contact the seller. The seller will need to fill out the ERC Transfer Notification Form (ERC Form-2) and submit it to Ohio EPA. Once Ohio EPA receives the notification and reviews it, they will process it and issue an ERC certificate to the new owner. 

Ohio EPA's procedure for forfeited ERCs

Ohio EPA maintains it is imperative to utilize emission reductions from a permanently shutdown facility that is no longer available for ERC quantification or future use in Ohio's nonattainment areas. The ERC Banking Program can distribute ERCs forfeited to Ohio EPA free of charge to a major facility in need of using ERCs for the purpose of emission offsets. The use of these ERCs may not be distributed to a facility unless the ERCs are used to comply with Ohio's NSR nonattainment rules. Ohio EPA must make every effort to contact the owner, operator, or legal representative responsible for assets of the facility generating ERCs before ERCs are forfeited to the Ohio EPA for emission offset use. 

Transfers

How do I transfer ERCs?

Once ERCs are deposited into the ERC Banking System, any person, organization or facility may contact the owner of the banked ERCs to negotiate a transfer. If you need to obtain ERCs through a transfer, you should go to the ERC Banking System to view what ERCs are available in your area by pollutant, verification status and county. Contact the designated person for the ERCs you are interested in obtaining to negotiate a transfer. Once you and the current owner reach an agreement, both the current owner and subsequent new owner must submit a completed ERC Transfer Notification Form (ERC Form-2) to Ohio EPA. After we review the form, we will transfer the ERCs to the new owner in the ERC Banking System. After the transfer occurs, Ohio EPA will provide both parties with an updated ERC certificate.     

Can ERCs be transferred or sold without being used as offsets?

As a participant of the ERC Banking Program, only verified ERCs may be transferred by the current owner in whole or in part by any means of conveyance permitted under state and federal laws. If you want to transfer un-verified ERCs, you must withdraw your ERCs from the banking program prior to transfer. Or you could choose to have Ohio EPA verify the ERCs and then transfer them within the program. Verified ERCs may be transferred, traded or sold to other parties, even when the buyer does not intend to use them for offsetting emissions for nonattainment New Source Review (NSR) purposes. In order to maintain an accurate bank, it is the responsibility of both the current owner and the subsequent owner of the verified ERCs to submit an ERC Transfer Notification Form (ERC Form-2) to Ohio EPA's ERC Banking Program Coordinator to update the ERC Banking System whenever such transactions occur. Please consult the ERC Transfer Notification Instructions for details on completing this form.

Transfer of verified ERCs:

Only verified ERCs may be transferred under the ERC Banking Program

1. If the owner of verified ERCs transfers all verified ERCs represented on one ERC certificate to a new owner, Ohio EPA will issue a new ERC certificate to the new owner and will send a revised ERC certificate to the original owner indicating they have a zero current balance of available ERCs on their certificate.
2. If the owner of an ERC certificate transfers part of the verified ERCs represented on an ERC certificate to a new owner, Ohio EPA will issue an ERC certificate for transferred ERCs to the new owner reflecting the transferred amount and will issue a revised ERC certificate to the original owner indicating the amount of available verified ERCs remaining after the transfer.
3. For any transferred ERCs resulting from emission reductions other than the permanent shutdown of an air contaminant source, the original generator of the verified ERCs will 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 new owner of any transferred ERCs will not be held liable for any failure of the generator to continue to comply with conditions imposed to allow generation of such ERCs.
4. For any transferred ERCs resulting from the permanent shutdown of an air contaminant source, permanence is ensured through submittal of the signed certification identifying the source was permanently shutdown. The original generator of the verified ERCs and owner of the permanently shutdown source shall be held liable for maintaining permanence of the shutdown. The new owner of any transferred ERCs will not be held liable.

Why can't I transfer un-verified ERCs?

The ERC Banking Program rules established a voluntary ERC Banking Program and these rules do not prohibit the transfer of un-verified ERCs outside of the ERC Banking Program. However, as a participant of the ERC banking program, we feel it is imperative to have a mechanism for parties to transfer verified ERCs that Ohio EPA has determined as surplus, permanent and quantifiable to reduce the risk for all parties. If a party wishes to engage in an un-verified ERC transfer, the current owner of the ERCs can either request Ohio EPA to verify the ERCs before the transfer or the current owner can write a letter or an email to Ohio EPA's ERC Banking Program Coordinator requesting to withdrawal their ERCs from the ERC Bank.

How are ERCs purchased?

Ohio EPA's role in the transfer process will be limited to providing information on the documentation of ERC generation, ERC certificates and providing technical assistance regarding possible future use of the ERCs being transferred. We will also review all Transfer Notification Forms (ERC Form-2) for accuracy and for ERC Banking System updating. Ohio EPA will maintain a list of available verified and un-verified ERCs, by county, by pollutant and the contact information for the owner of ERCs on our website. Ohio EPA 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 ERCs in order to negotiate terms and conditions surrounding the sale or transfer of ERCs.

Use and Withdrawal

ERCs may be used to the extent permissible by federal, state and local law. In general, facilities applying for a permit for a newly constructed or modified "major" air pollution source will use ERCs to offset their emission increases from an existing source that generated ERCs within a similar geographical area. ERCs may also be used for: 1) retirement for the purpose of a net air quality benefit for the state; 2) to demonstrate attainment in Ohio's State Implementation Plan (SIP); or 3) as part of an internal netting demonstration of a net emissions increase as long as the source using the ERCs is the same source that generated and banked ERCs.

Withdrawal of ERCs

1. Facilities holding ERCs or ERC Certificate(s) may withdraw the ERCs or ERC Certificates from the ERC Banking System at any time. The current owner may write a letter to the Ohio EPA ERC Banking Program Coordinator requesting to withdrawal ERCs. In the letter, indicate the type of pollutant, quantity of ERCs and any applicable ERC Certificate ID.
2. ERCs may be withdrawn only by the current owner or by the Director of Ohio EPA and may be withdrawn in whole or in part. In the case of a partial withdrawal, a revised amount of un-verified ERCs or revised ERC certificate (for verified ERCs) will be issued to the current owner reflecting the new amount of available ERCs.

What is the process for using verified ERCs?

In order to use ERCs contained in the banking system, you must be the current owner of the ERCs, as identified in the ERC Banking System and the ERCs must be verified before use for the purpose of offsetting emissions or internal netting. Un-verified ERCs may be used for the purpose of retirement or to demonstrate attainment in Ohio's SIP. When using ERCs, submit a complete ERC Use Notification Form (ERC Form -3) to Ohio EPA for review. If you are not the current owner of the ERCs, then you and the current owner must submit an ERC Transfer Notification Form (ERC Form - 2) to transfer ERC ownership.

If you want to use un-verified ERCs for the purpose of offsetting emissions or internal netting, Ohio EPA will still need to review the credibility of the emission reductions as part of the permitting process. If the un-verified ERCs are contained in the ERC Banking System, Ohio EPA will first withdraw them. Keep in mind that the verification process during the use phase (when permitting occurs) will likely take more time than it would for you to use ERCs that were verified in advance of the permitting process.

Ohio EPA cannot make any guarantee to the validity of un-verified ERCs identified in the ERC Banking System. All parties should understand the risk involved in transactions, and subsequent requests for use, of un-verified ERCs.   

Instructions for transferring ERCs before use:

If the ERCs needed for use are not currently in your possession, then you and the current owner must complete an ERC Transfer Notification Form (ERC Form -2) ERC Form -2 and ERC Form -3 may be submitted simultaneously to Ohio EPA. Please consult ERC Form - 2 and ERC Form - 3 Instructions for more details on completing both forms. It is important to remember that when participating in the ERC Banking Program pursuant to OAC Chapter 3745-111 only verified ERC(s) may be transferred.

ERC final verification process:

When ERCs are used for the purpose of offsetting emissions or internal netting, they will go through a final verification determination by Ohio EPA to verify the total amount of ERCs available for use pursuant of OAC Chapter 3745-31. This includes any previously verified ERCs deposited or transferred through the ERC banking system. Submitting an ERC Use Notification Form (ERC Form -3) prior to the permitting application process will help ensure ample time for Ohio EPA to verify ERCs and will give your facility assurance that enough ERCs are available for your project early on in the permitting process. If you need assistance with this form, please consult the ERC Form - 3 instructions or contact your District Office or Local Air Agency.  

What is the lifespan of an ERC in the Banking Program?

ERCs that enter the ERC banking system are not subject to a static expiration period. However, there are a few factors that could cause ERCs to be discounted over time. Below are a number of scenarios in which ERCs could be discounted in the ERC Banking Program.

Discounting ERCs:

Ohio EPA may reduce the amount of ERCs if there is:

1. Any evidence of noncompliance with any permit conditions imposed to make ERCs permanent and federally enforceable
2. A failure to achieve in practice the emission reductions on which the ERCs are based upon
3. A misrepresentation made on an ERC generation notification form, including supporting data entered therein or attached to or any subsequent submittal of supporting data
4. A need to achieve the National Ambient Air Quality Standards (NAAQS) for Ohio State Implementation Plan (SIP) requirements.   

Can ERCs for one pollutant be used as offsets for other pollutants?

Eight-hour Ozone Nonattainment: 

For the eight-hour ozone nonattainment areas, use of only the same air pollutant ERCs will be acceptable for the purpose of offsetting emissions (e.g., hydrocarbon increases may not be offset by sulfur dioxide reductions). No ERCs may be allowed for replacing one volatile organic compound (VOC) with another of lesser reactivity, except for those compounds listed in Table 1 of the U.S. EPA's Recommended Policy on Control of VOCs.

Emission Offset Ratios

• • In areas that are not classified as marginal, moderate, serious, severe or extreme areas, the offset ratio shall be greater than 1-to-1
  • In marginal areas, the minimum required offset ratio is 1.1-to-1.
  • In moderate areas, the minimum required offset ratio is 1.15-to-1.
  • In serious areas, the minimum required offset ratio is 1.2-to-1.
  • In severe areas, the minimum required offset ratio is 1.3-to-1.
  • In extreme areas, the minimum required offset ratio is 1.5-to-1.
  • Offsets may be obtained from areas that have a higher nonattainment classification (provided the higher offset ratio is utilized) than the nonattainment area in which the major stationary source is to be located.

Fine Particulate (PM 2.5) Nonattainment:

Inter-pollutant trading to offset emissions under the PM 2.5 nonattainment New Source Review (NSR) program on a statewide basis is allowed. The permissible inter-pollutant offset trading requirements allows reductions in direct PM 2.5 to offset precursor emissions increases and reductions in precursor emissions to offset direct PM 2.5 emissions increases. To facilitate these trading provisions, U.S. EPA has provided acceptable trading ratios that specify the amount of each pollutant which may be traded for any other.

Emission Offset Ratios and Inter-pollutant Trading

• • For direct PM 2.5 to direct PM 2.5, the trading ratio is 1-to-1.
  • For sulfur dioxide (SO2) precursor to SO2 precursor, the trading ratio is 1-to-1.
  • For nitrogen oxides (NOx) to direct PM2.5 or primary PM2.5 to NOx, the trading ratio is 200-to-1 (NOx tons for PM2.5 tons) or 1-to-200 (PM2.5 tons for NOx tons) for areas in the eastern United States. (Ohio is considered an eastern state.)
  • For SO2 to direct PM2.5 or primary PM2.5 to SO2, a nationwide trading ratio of 40-to-1 (SO2 tons for PM2.5 tons) or 1-to-40 (PM2.5 tons for SO2) for trades between these pollutants. 

Can reductions generated in one county be used in another county?

In general, emission offsets from a nonattainment county with a lower classification may not be used in a nonattainment with a higher classification (e.g., a VOC ERC generated in a basic ozone nonattainment area can not be used in a moderate ozone nonattainment area). In addition, it is prohibited to use emission reductions in an attainment area for any nonattainment area.

Eight-hour Ozone Nonattainment Areas:

Within nonattainment eight-hour ozone areas, VOC ERCs and NOx ERCs may be obtained from within the same nonattainment area as the new major stationary source, major modification or in an adjacent nonattainment area if the new major source can demonstrate to the director's satisfaction that the net combined impact of the emissions from the offsetting sources and emissions from the new major stationary source or major modification will have a positive net air quality benefit on the nonattainment ozone air quality in the area.

PM 2.5 Nonattainment Areas:

Within PM 2.5 nonattainment counties and partial counties, PM 2.5 ERCs or PM 2.5 precursor ERCs (e.g. SO2 or NOx) generated in one county can be used in another county if the counties are located within the same nonattainment area where the reduction was generated. If you want to use ERCs generated in one county in another county that is within an adjacent nonattainment area, then the director may require atmospheric dispersion modeling to ensue that emission offsets provide a net air quality benefit.

What ERCs are currently available?

ERCs are grouped into verification status. You can view available verified ERCs and un-verified ERCs separately. Under the ERC Banking Program, only verified ERCs may be transferred or used for the purpose of emission offsets. Un-verified ERCs must be verified before transfer or use under the ERC Banking Program. The ERC Banking system tracks the generation, transfer and use of verified ERCs and the generation of un-verified ERCs. All available ERCs are posted on the Verified ERCs and Unverified ERCs tabs.

Verified ERCs

Verified ERCs deposited in the ERC Banking System may be transferred under the ERC Banking Program rules. Please consult Ohio Administrative Code (OAC) rule 3745-111-04 for details on the transfer and use rules.

Available Verified ERCs by Pollutant (sorted by county: weekly update from ERC database)

• Carbon monoxide (CO)
• Nitrogen oxides (NOx) 
• Particles (PM2.5)
• Particles (PM10) 
• Lead (Pb) 
• Sulfur dioxide (SO2) 
• Volatile organic compounds (VOCs)