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March 10, 2009

EPA's GHG Rule Proposed Today – Will It Impact Your Business?

Six months overdue, the U.S. Environmental Protection Agency (U.S. EPA) finally rolled out its proposed Greenhouse Gas (GHG) mandatory reporting rule today. The proposed rule (with preamble) is a hefty 1,350 pages and was mandated by Congress more than a year ago.

The proposed rule requires:

  • Mandatory annual reporting of GHG emissions from facilities in certain source categories and from other facilities with at least 25,000 metric tons of carbon dioxide (CO2) equivalent[1] emissions per year.
  • Facilities in the following sectors are the primary, but not the only targets of the proposal:
    • Electricity Generators[2],[3];
    • Electric Power Systems[4];
    • Vehicle & engine manufacturers[5];
    • Metal, minerals, cement, chemical, mining, petroleum refining, electronics, petrochemical producers;
    • Suppliers of fossil fuels (natural gas and coal) and industrial gases;
    • Manure Management Systems and Landfills[3].
  • Data collection to begin in 2010, with the first report due to U.S. EPA in 2011.
  • U.S. EPA opted not to use "third party verification" and will verify the data itself and assess penalties for failure to report and/or reporting discrepancies.
  • U.S. EPA claims its reporting methods are built on and follow existing GHG reporting schemes already established by public/private entities and several states.
  • U.S. EPA will hold public hearings April 6-7, 2009, in Arlington, VA, and April 16, 2009, in Sacramento, CA.
  • A 60-day public comment period on the proposed rule begins when the rule is published in the Federal Register.

Future environmental alerts will highlight specific issues/segments of the proposed rule.


[1]  The proposed Mandatory Reporting of Greenhouse Gases (GHGs) 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, hydrofluorinated ethers (HFEs).

[2]  Proposed to continue quarterly reporting if subject to Acid Rain Program.

[3]  That emit or generate over 25,000 metric tons per year.

[4]  If capacity exceeds 17,820 lbs. SF6 or PFCs.

[5]  Proposed to report under other existing rules.

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