Discrete Emission Reduction Credits
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.