Under the Districtís New and Modified Source Review (NSR) Rule, new facilities and modifications to existing facilities that cause increases in emissions above certain levels are required to provide emission reduction credits as mitigation. Although the Districtís NSR rule, overall, is more stringent than the federal regulations, it does not exactly match the federal requirements in all respects. In particular, the Districtís NSR rule does not require discounting of ERCs at the time of use. Discounting is a process of reducing the value of ERCs by adjusting them for emissions reductions that have been required by newer rules adopted since the original ERC banking action. An offset equivalency system has been designed to assess overall equivalency with EPA regulations on an annual basis.
Below are the Districtís annual offset equivalency reports submitted to the federal Environmental Protection Agency (EPA) for the following 12-month periods: