EPA Proposes Rule for Greenhouse Gas Emissions

On March 10, 2009, the U.S. Environmental Protection Agency (EPA) proposed a rule under the Clean Air Act that requires mandatory reporting of greenhouse gas (GHG) emissions from large sources in the United States.  The proposed rule would require the collection of accurate and comprehensive data regarding GHG emissions to provide the basis for future policy decisions.  EPA's proposal will require submittal of annual reports by an estimated 13,000 facilities.   The proposal covers emissions of carbon dioxide (CO₂), nitrous oxide (N₂O), and other greenhouse gases.  The reporting rule was required by the consolidated Appropriations Act of 2008.  There is a 60-day comment period on the proposal after publication in the Federal Register.  Additionally, there will be two public hearings on the proposal in April in Arlington, Va. and Sacramento, Calif.
 
The proposed rule includes reporting requirements for a wide range of source categories.  For some source categories, reporting is required regardless of the actual GHG emissions level.  For others, the proposal requires reporting only if emissions are equal to or greater than 25,000 metric tons of CO₂ equivalent (CO₂e) in combined emissions.  If not in a listed source category, combustion sources may also need to be reported if the facility unit is greater than 25,000 tons CO₂e from combustion units.  EPA estimates that approximately 85-90 percent of total national U.S. GHG emissions, would be covered under the proposed rule.

The proposal includes general reporting requirements for all as well as specific requirements for each of the identified source categories.

The first annual report for stationary source emissions would be submitted to the EPA in 2011, for the calendar year 2010 data, with the exception of manufacturers of vehicles and engines who would begin reporting for model year 2011.  EPA will not have mandatory third-party verification for emissions reports, but instead verification will be EPA's responsibility. 

EPA estimates that the proposed rule's reporting requirements will cost the private sector about $160 million in the first year.  In following years, the annual costs would amount to an estimated $127 million for the private sector.  The average cost of reporting is projected to be about $0.04 per metric ton.

EPA is accepting comment on the proposed regulation and may change its approach in light of comments received.