Permitting >> Emission Reduction Credits >> ERC Use and Expiration
ERC Use and Expiration
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 ERCs may be withdrawn only by the owner of record or by the Director of the Division of Air Quality (DAQ) and may be withdrawn in whole or in part.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"].)
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.

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.

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.

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.

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

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)

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.