Emission Reduction Credits

Emission Reduction Credits (ERCs) are issued to businesses that reduce their emissions beyond what is required by District, State, or Federal requirements.  In order to bank ERCs, the District performs an evaluation to verify that the reductions meet all the following criteria:

  • Real; Actually occurring, implemented, and not artificially devised,
  • Enforceable; Verifiable and legally binding,
  • Quantifiable; Can be accurately estimated in terms of their amount and characteristics,
  • Permanent; Enduring forever, and
  • Surplus; Above and beyond what is required by any laws, rules, regulations, agreements, orders.

Apply for ERCs

ERC issuances are recorded in the District’s Emission Reduction Credit Registry, which is updated quarterly.

The District requires businesses to offset proposed new emissions with ERCs in certain cases. ERCs are typically only required in permit applications with substantial new criteria pollutant emissions. Sources who are required to offset their proposed emissions with ERCs can use their own banked ERCs or purchase them from another ERC holder.

The District does not set the price for ERCs – that is determined on the open market by the seller(s) and buyer(s).  However, in accordance with state law the District maintains an ERC transaction history showing the price previous purchasers have paid.

District staff works with applicants to identify potential ERC sources. In the case where ERCs cannot be purchased from within Yolo-Solano, the District Board of Directors can allow interdistrict ERC transfers in accordance with California Health & Safety Code 40709.6.