Requirements for ERC Users

(a) Eligible Facilities. Offsets shall only be used by the owners and operators of facilities that meet criteria (1) and (2) below. (1) The request to offset air quality impacts using ERCs shall be included in an application for a PSD permit. (2) The facility must be located within 100 miles of the facility that generated the applicable ERCs unless a determination is made in accordance with (B) below. (A) The measurement to determine the distance between the facility using ERCs and the facility that generated the ERCs shall be based on the center point of each facility. AQAC_2026_JUL_SC_7_8_10_RUL 21 June 15, 2026 (B) DEQ may allow a facility to use ERCs generated at a facility that is farther than 100 miles away if: (i) In the judgment of DEQ, such an allowance is appropriate; (ii) The facility applying to use ERCs provides a reasonable justification for such an exception; and (iii) The justification is supported by air quality modeling, prevailing weather patterns, or other criteria specified by the Director. (b) Application. To be eligible to use ERCs to offset project emission increases under the PSD program, an ERC user must submit an application that meets criteria (1) through (4) below. (1) The ERCs used to offset project emission increases must offset all project emission increases for the new major stationary source construction or new major modification to an existing source. (2) In addition to offsetting all project emission increases, the applicant must extinguish an additional 10% of the project emission increases to ensure that the project results in an aggregate reduction in airshed emissions. (3) The ERC user must submit an administratively complete application for a PSD construction permit in accordance with Parts 5 and 7 of OAC 252:100-8. (4) The ERC user must submit, along with the application, a document confirming the acquisition of the desired ERCs. (c) Administrative Review. Following receipt of an eligible ERC user’s application for the use of ERCs in offsetting project emission increases, DEQ shall verify the information contained in the application and, if appropriate, approve the issuance of a PSD construction permit that authorizes the project and the use of the offsetting emissions. (1) DEQ may request additional information from the eligible ERC user if the application for project authorization is incomplete or otherwise deviates from the requirements detailed in this subsection. (2) As part of its review of an eligible ERC user application, DEQ shall determine if an ERC may still be considered surplus. (d) Public Review. In accordance with the requirements of OAC 252:4-7-33(b) and OAC 252:4- 7-34(a), any permit that extinguishes ERCs to offset air quality impacts shall be required to undergo either Tier II or Tier III public participation. (e) Acquisition of ERCs. The eligible ERC user is responsible for contracting with one or more ERC generators, or another entity that has obtained ERCs, to acquire a sufficient quantity of ERCs to offset 110% of project emission increases. (1) DEQ shall ensure that all of the following requirements are met before issuing a PSD permit where air quality impacts are offset by the extinguishment of the required quantity of ERCs. Any ERC used to offset air quality impacts must be confirmed to be surplus on the date the draft PSD permit is published for public review in accordance with OAC 252:4-7 and state review in accordance with OAC 252:100-8-8. (A) Prior to publication of the draft PSD permit, DEQ must confirm that any ERC listed in the ERC registry that will be used to offset air quality impacts remains surplus. (B) If, after performing the determination, DEQ concludes that only a portion of the ERCs remain surplus, the ERC user shall acquire sufficient surplus ERCs to offset 110% of project emission increases. (2) The ERC user must have acquired all necessary ERCs before the PSD permit may be issued. AQAC_2026_JUL_SC_7_8_10_RUL 22 June 15, 2026 (3) DEQ shall determine that the permit has undergone all required public notice and public participation requirements required in OAC 252:4-7-33(b) or OAC 252:4-7-34(a) as appropriate. (f) Extinguishment of ERCs. The PSD permit shall specify the date(s) and/or the action(s) which will trigger the extinguishment of the ERCs by DEQ. The PSD permit holder shall confirm in writing that these actions have taken place, as required in the permit, and DEQ shall extinguish the ERCs as required and shall update the ERC registry.