U.S. EPA finalize's the US's first mandatory GHG reporting system | 24th Sep 2009

On January 1, 2010, the U.S. Environmental Protection Agency (EPA) will, for the first time, require large emitters of heat-trapping emissions to begin collecting greenhouse gas (GHG) data under a new reporting system. This new program will cover approximately 85 percent of the nation's GHG emissions and apply to roughly 10,000 facilities.  

The final rule, signed on September 22, 2009, reflects changes made by the EPA in consideration and response to approximately 17,000 public comments it received since it published the proposed rule in April 2009.

What is the purpose of the rule?

The EPA's new reporting system will provide a better understanding of where GHGs are coming from and will guide development of the best possible policies and programs to reduce emissions.

The data will also allow businesses to track their own emissions, compare them to similar facilities, and provide assistance in identifying cost-effective ways to reduce emissions in the future. This comprehensive, nationwide emissions data will help in the fight against climate change.

Who will have to report under the final rule?

Fossil fuel and industrial GHG suppliers, motor vehicle and engine manufacturers, and facilities that emit 25,000 metric tons or more of CO2 equivalent (mtCO2e) per year will be required to report GHG emissions data to the EPA annually. This threshold is equivalent to the annual GHG emissions from use of approximately 450 million cubic feet of natural gas or 2.4 million gallons of fuel oil.

The first annual reports for the largest emitting facilities, covering calendar year 2010, will be due to the EPA in March 2011. Vehicle and engine manufacturers outside the light-duty sector will begin phasing in GHG reporting with model year 2011. Some source categories included in the proposed rule are still under review.

The EPA estimates that most small businesses and commercial facilities will fall below the 25,000 metric ton threshold and will not be subject to the new reporting requirements.

What changes has the EPA made to the April 2009 proposed rule?
The EPA has made multiple changes to the rule they proposed earlier this year. For example:

• The number of source and supply categories that facilities and suppliers must report from has been reduced from 42 to 31.
• A mechanism for facilities and suppliers to cease annual reporting by reducing their GHG emissions has been added.
• Exemptions for combustion of unconventional fuels, flares, hazardous waste, and emergency equipment have been added.

What is next?
The EPA will be preparing online tools and technical assistance materials and will host several training and web seminars. In the meantime, facilities should determine whether they are subject to the new reporting requirements and have appropriate systems in place for accurate data collection. 

For more information, please contact Brooke Dillon on +1 303.850.9200 or brooke.dillon@wspgroup.com.