EMISSIONS

Discrete Emission Reduction Credits

Market Overview

Discrete Emission Reductions Credits (“DERCs”) are reductions in emissions that occur over a specified time and do not continue into the future.  These reductions are temporary reductions under permitted levels and are usually separated into two categories - Non-ozone season (October-April) and Ozone season (May-September).   

A DERC can only be used once and, unlike the ERC market, a source would need to continuously purchase DERC’s every year.  Companies that have a temporary emissions increase tend to prefer DERCs to offset their requirements.  The DERC programs vary by state.  The active DERC markets are:

Michigan, Texas, Connecticut, and Massachusetts.