Emission Reduction Credit (ERC) Banking Program - Transfers
How do I transfer ERCs?
Once ERCs are deposited into the ERC Banking System, any person, organization or facility may contact the owner of the banked ERCs to negotiate a transfer. If you need to obtain ERCs through a transfer, you should go to the ERC Banking System to view what ERCs are available in your area by pollutant, verification status and county. Contact the designated person for the ERCs you are interested in obtaining to negotiate a transfer. Once you and the current owner reach an agreement, both the current owner and subsequent new owner must submit a completed ERC Transfer Notification form (ERC Form - 2) to Ohio EPA. After we review the form, we will transfer the ERCs to the new owner in the ERC Banking System. After the transfer occurs, Ohio EPA will provide both parties with an updated ERC certificate.
Can ERCs be transferred or sold without being used as offsets?
As a participant of the ERC Banking Program, only verified ERCs may be transferred by the current owner in whole or in part by any means of conveyance permitted under state and federal laws. If you want to transfer un-verified ERCs, you must withdraw your ERCs from the banking program prior to transfer. Or you could choose to have Ohio EPA verify the ERCs and then transfer them within the program. Verified ERCs may be transferred, traded or sold to other parties, even when the buyer does not intend to use them for offsetting emissions for nonattainment New Source Review (NSR) purposes. In order to maintain an accurate bank, it is the responsibility of both the current owner and the subsequent owner of the verified ERCs to submit an ERC Transfer Notification form (ERC Form - 2) to Ohio EPA's ERC Banking Program coordinator to update the ERC Banking System whenever such transactions occur. Please consult the ERC Transfer Notification Instructions for details on completing this form.
Transfer of verified ERCs:
Only verified ERCs may be transferred under the ERC Banking Program
- If the owner of verified ERCs transfers all verified ERCs represented on one ERC certificate to a new owner, Ohio EPA will issue a new ERC certificate to the new owner and will send a revised ERC certificate to the original owner indicating they have a zero current balance of available ERCs on their certificate.
- If the owner of an ERC certificate transfers part of the verified ERCs represented on an ERC certificate to a new owner, Ohio EPA will issue an ERC certificate for transferred ERCs to the new owner reflecting the transferred amount and will issue a revised ERC certificate to the original owner indicating the amount of available verified ERCs remaining after the transfer.
- For any transferred ERCs resulting from emission reductions other than the permanent shutdown of an air contaminant source, the original generator of the verified ERCs will continue to have enforceable conditions in the appropriate permit to assure permanency of the emission reduction and shall be held liable for compliance with those conditions. The new owner of any transferred ERCs will not be held liable for any failure of the generator to continue to comply with conditions imposed to allow generation of such ERCs.
- For any transferred ERCs resulting from the permanent shutdown of an air contaminant source, permanence is ensured through submittal of the signed certification identifying the source was permanently shutdown. The original generator of the verified ERCs and owner of the permanently shutdown source shall be held liable for maintaining permanence of the shutdown. The new owner of any transferred ERCs will not be held liable.
Why can't I transfer un-verified ERCs?
The ERC Banking Program rules established a voluntary ERC Banking Program and these rules do not prohibit the transfer of un-verified ERCs outside of the ERC Banking Program. However, as a participant of the ERC banking program, we feel it is imperative to have a mechanism for parties to transfer verified ERCs that Ohio EPA has determined as surplus, permanent and quantifiable to reduce the risk for all parties. If a party wishes to engage in an un-verified ERC transfer, the current owner of the ERCs can either request Ohio EPA to verify the ERCs before the transfer or the current owner can write a letter to Ohio EPA's ERC Banking Program Coordinator requesting to withdrawal their ERCs from the ERC Bank.
How Are ERCs purchased?
Ohio EPA's role in the transfer process will be limited to providing information on the documentation of ERC generation, ERC certificates and providing technical assistance regarding possible future use of the ERCs being transferred. We will also review all Transfer Notification Forms (ERC Form -2) for accuracy and for ERC Banking System updating. Ohio EPA will maintain a list of available verified and un-verified ERCs, by county, by pollutant and the contact information for the owner of ERCs on our website. Ohio EPA will not be involved in the buying and selling of ERCs; therefore, companies or organizations interested in purchasing credits must contact the owners of the ERCs in order to negotiate terms and conditions surrounding the sale or transfer of ERCs.
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