ARCHIVES

Emission Reduction Credits - Michigan

Michigan DEQ regulations require sources with NOx, SOx, PM10, VOC or CO emissions over 100 tons/year to offset their emissions using ERCs.  ERCS can also be used for:

• Offsetting modified sources;
• Delayed or alternative compliance with RACT requirements;
• Compliance with certain air permit or rule requirements;
• Alternate compliance option for Alternative Emission Limits or source exemptions for waivers from compliance requirements;
• Temporary increases in emissions below major source or major modification thresholds;
• As a compliance buffer, a source may purchase excess ERCs for use to ensure compliance if ERCs used for compliance are found to be insufficient;
• The State could purchase and retire ERCs to assure attainment and maintenance of NAAQS;
• State/local agencies could promote economic development by purchasing and donating ERCs to businesses to reduce the offset requirement burdens;
• Purchase by environmental groups or others to improve air quality; or
• As a Supplemental Environmental Project (SEP) component to mitigate enforcement action.

There are restrictions based on where the ERCs were generated and ozone season restrictions also apply.  Interstate and international trading is permitted with some restrictions.  Finally, ERCs must be used within 5 years of generation or they will be retired by the state as an environmental benefit.

BGC Environmental Brokerage Services brokers are experts in this market; we would be happy to assist you with any questions or credit trading needs.