January 1, 2010

GHG Emissions Reporting Begins Jan. 1

Kerry E. Shea and Michael J. Gelardi

Last fall, the U.S. Environmental Protection Agency (EPA) issued a rule creating a mandatory national system for reporting greenhouse gas (GHG) emissions. The agency requires regulated entities to begin monitoring GHG emissions January 1, 2010, and to submit their first annual emissions reports March 31, 2011. This is a key step toward federal regulation of GHG emissions (a step that may have major implications regarding "major sources" and permitting requirements for new sources). It’s also an opportunity for power producers to implement their inventory management plans.

The EPA’s program covers approximately 10,000 factories, power plants, fuel suppliers, and other business units accounting for about 85% of national GHG emissions. The rule requires monitoring and reporting of all major GHGs, including carbon dioxide (CO₂), methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride, and other fluorinated gases. Those required to report include not only large "downstream" facilities that directly emit GHGs but also "upstream" suppliers of GHG-producing fuels and chemicals, plus certain vehicle and engine manufacturers dubbed "mobile" sources.

This development may not be new to everyone. Any electricity-generating facility already required to continuously monitor its GHG emissions under the Acid Rain Program is automatically required to report GHG emissions under the new EPA rule. These facilities fall under the "Electricity Generation" category (Subpart D of the rule). Facilities that are not subject to the Acid Rain Program must monitor and report their GHG emissions if they have an aggregate maximum rated heat input capacity of at least 30 million Btu/hour and have emissions of at least 25,000 metric tons of CO₂ equivalent per year (Subpart C, "General Stationary Fuel Combustion Sources").

The EPA’s reporting program does not preempt state GHG emissions reporting programs. Currently, 17 states have developed or are developing mandatory GHG reporting programs. Reporting requirements and methodologies differ, so you may have to consult your state for details.