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Emission Reduction Credits (ERCs)

Overview

The CDPHE Air Pollution Control Division’s Emission Reduction Credit (ERC) program is available to stationary sources of air pollution in Colorado’s ozone pollution nonattainment areas. The program allows stationary sources to make voluntary permanent reductions of nitrogen oxides (NOx) or volatile organic compounds (VOC) emissions. The program is designed to provide incentives for creative and cost-effective ways to control air pollution while promoting economic development and industrial growth. 
These reduction credits can be bought, sold, and traded between entities. ERC owners can use them as offsets for Nonattainment New Source Review projects.

In November 2025, the Air Quality Control Commission adopted updates to the ERC program under Regulation 3, Part A, Section V. The changes took effect on Jan. 14, 2026. The Colorado Secretary of State’s office publishes final versions of updated regulations, once available, and sources can access the updates on the commission’s regulations web page.

Emission Reduction Credit guidance draft: Public comment period open

On Jan. 23, 2026 the division released the new Emission Reduction Credit (ERC) Guidance Document draft for a 30-day public comment period. The division will accept and consider all comments and feedback through Feb. 21, 2026.
The guidance provides instructions for complying with the newly effective ERC regulation in Regulation 3, Part A, Section V. The ERC guidance will:

  • Explain how the program will be implemented for voluntary, permanent air pollution reductions in nonattainment areas.
  • Detail the criteria an emission reduction must meet to be considered creditable.
  • Provide the methodology for calculating baseline emissions and the final ERC credit amount.
    Outline the multi-step process for the certification of ERCs, from online application submission through final issuance of the ERC certificate.
  • Provide information on the fees and application requirements associated with the ERC certification and permitting process.
  • Explain the requirements for new major stationary sources and major modifications to use certified ERCs as offsets for Nonattainment New Source Review (NANSR).

Submit comments on the draft guidance.

Apply for certification, use, or transfer of ownership

Application forms for use and transfer of ownership are expected to be available in February 2026.

Apply for ERCs.

An Environmental ID is required for all application forms. Already existing Environmental IDs may be found in the Environmental ID database. If you do not currently have an Environmental ID, you may submit an Environmental ID request form.

Registry

The division maintains a database that records all active ERC certificates.

View the full registry.

Processing fees

  • APEN filing fees of $363.00 per APEN submitted at the time of a corresponding permit application.
  • An automatic ERC certification processing fee of $4,500 per emission point. \
  • A line item in the invoice for 13 hours representing ERC program creation and 12 hours of ERC implementation/compliance
  • Hourly processing fees of $180.00 per hour for the actual time spent in processing the ERC Application by the ERC unit.
  • Hourly permit processing fees of $180.00 per hour for actual time spent by the permit program in processing a corresponding permit.

  • APEN filing fees of $363.00 per APEN submitted at the time of a corresponding permit application.
  • Processing fees of $180.00 per hour for the actual time spent in processing the ERC Application by the ERC unit.
  • Permit processing fees of $180.00 per hour for actual time spent by the permit program in processing a corresponding permit.
  • An automatic ERC Certification Processing fee of $2,340.00.
  • A line item in the invoice representing 13 hours of ERC program creation per APEN or emission point requesting ERC.

  • APEN filing fees of $363.00 per APEN submitted at the time of a corresponding permit application.
  • Processing fees of $180.00 per hour for the actual time spent in processing the ERC Application by the ERC unit.
  • Permit processing fees of $180.00 per hour for actual time spent by the permit program in processing the corresponding permit.

Contact us

Questions? Email cdphe_apcd_erc@state.co.us.