How will the RACT discount of ERCs be applied?
EPA requires ERCs to be discounted by reasonably available control technology (RACT) at the time of use. RACT discounting of ERCs accounts for any advances in emission control techniques and ensures that emission reductions are consistent with APCD prohibitory rules and control measures relied upon in the clean air plan. To comply with this requirement, the District will apply the RACT discount to ERCs as they are entered into the source register and, if RACT changes between the date the ERCs were deposited and the date used, again before the ERCs are used to reflect any change in the amount of the RACT discount. This allows the value of ERCs in the source register to reflect close to their actual value instead of an inflated value that has yet to be reduced by applicable RACT discounts. In the event that an applicable RACT requirement is relaxed, the ERCs will be adjusted accordingly at the time of use.
