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Mandatory Greenhouse Gas Reporting Rule (05/17/09)

On April 10, 2009, EPA proposed in the Federal Register a massive rule requiring the mandatory reporting of greenhouse gases (GHG).  We use the adjective massive because the proposed rule takes up almost 300 pages in the Federal Register and, according to EPA’s estimates, would affect over 30,000 individual facilities across some 40 source categories.  The proposed rule was drafted by EPA’s Climate Change Division, which is a sister division to EPA’s Clean Air Markets Division.  The public comment period is scheduled to close on June 9, 2009.

EPA’s proposed mandatory GHG reporting rule would have significant impact on host of industries.  The rule would place additional monitoring and reporting requirements on sources, would produce data likely to influence potential GHG reduction policy decisions and could establish potential precedents for future CO2/GHG reporting requirements.  The proposed rule would require reporting of annual emissions of carbon dioxide (CO2) methane (CH4), nitrous oxide (N2O), sulfur hexafluoride (SF6), hydrofluorocarbons (HFCs), perfluorochemicals (PFCs), and other fluorinated gases (e.g., nitrogen trifluoride).  The proposed rule applies to facilities that emit ≥25,000 tons per year of CO2 equivalent GHG emissions and to suppliers of fossil fuels and industrial GHGs, as well as to manufacturers of vehicles and engines.  Annual reporting would generally be required at the facility level except certain vehicle and engine manufacturers would report at the corporate level. 

In the proposal, EPA wants to rule to be effective January 1, 2010, with the first annual reports due on March 31, 2011.  EPA’s goal is to have the final rule published in time for sources to actually begin monitoring and collecting data on January 1, 2010.  RMB believes EPA’s goal is unrealistic; a more realistic approach is to start collecting data on January 1, 2011 and submit the first reports to EPA by March 31, 2012.  The preamble and proposed rule can be downloaded from the following links. 

http://www.epa.gov/climatechange/emissions/downloads/RULE_E9-5711.pdf

http://www.epa.gov/climatechange/emissions/downloads/Preamble_E9-5711.pdf

 

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Last Revised: January 28, 2011