March 2009
First National Greenhouse Gas Reporting Rule Proposed by EPA
On March 10, 2009, the U.S. Environmental Protection Agency (EPA) released a proposed rule that would require mandatory greenhouse gas (GHG) reporting for large GHG emissions sources in the United States. Greenhouse gases, such as carbon dioxide, are produced by the burning of fossil fuels and through industrial and biological processes. Approximately 13,000 facilities, accounting for about 85 to 90 percent of anthropogenic greenhouse gases emitted in the United States, would be covered under the proposal. The EPA estimates the cost of compliance for those companies required to report will be approximately $160 million in the first year and roughly $127 million in subsequent years.
In general, the proposed rule will apply to those facilities that emit more than 25,000 metric tons of GHGs per year, including but not limited to power generators, automobile manufacturers, industrial chemical suppliers and cement, iron, and steel producers. The vast majority of small businesses would not be required to report their emissions because their emissions fall well below the threshold.
New vehicle and engine manufacturers will report carbon dioxide emissions to the EPA on a gram per mile basis, similar to existing requirements. EPA is proposing to seek comments on establishing reporting requirements for fleets as well as the reporting of additional travel data from state and local governments.
According to EPA, most of the agricultural sector will not be affected by the rule with the exception of livestock operations with GHG emissions from manure management systems that meet or exceed the 25,000 metric tons threshold. The EPA estimates less than 50 large livestock operations meet the reporting criteria.
The first annual report would be submitted to EPA in 2011 for calendar year 2010, except for vehicle manufacturers, which would begin reporting in 2012 for model year 2011.
EPA is developing this rule under the Clean Air Act. The proposed rule will be open for public comment 60 days following publication in the Federal Registry. Two public hearings are scheduled during the comment period - one in Arlington, Virginia and one in Sacramento, California.
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Trihydro Corporation (Trihydro) is a Founding Reporter of The Climate Registry and has voluntarily committed to measure, independently verify, and publicly report the company’s GHG emissions on an annual basis utilizing The Climate Registry General Reporting Protocol. The protocol is based on the internationally recognized GHG measurement standards of the World Resources Institute and World Business Council on Sustainability.
For more information, please log onto www.epa.gov/climatechange/emissions/ghgrulemaking.html
Source: US EPA – Environmental Protection Agency, Published March 10, 2009
