EPA Proposes National GHG Emissions-Reporting Rule
by Climate Weekly – March 17, 2009
The U.S. Environmental Protection Agency (EPA) has proposed a comprehensive national system for reporting greenhouse gas (GHG) emissions. The proposed rule is the first of its kind and would mandate major U.S.-based producers of GHG emissions, including carbon dioxide, to report their emissions.
EPA's Proposed GHG Rule Not Apply to Everyone
Fossil-fuel suppliers and those that work with industrial chemicals or manufacture motor vehicles and engines, as well as direct GHG emitters with emissions over 25,000 metric tons per year, would be subject to the rule–direct emission sources include energy-intensive sectors like cement production, electricity generation, and iron and steel production. "This threshold is roughly equivalent to the annual greenhouse gas emissions from just over 4,500 passenger vehicles," the EPA explained, stressing that it's unlikely that most small businesses would have to report their emissions.
"Our efforts to confront climate change must be guided by the best possible information," said EPA Administrator Lisa Jackson. "Through this new reporting, we will have comprehensive and accurate data about the production of greenhouse gases. This is a critical step toward helping us better protect our health and environment–all without placing an onerous burden on our nation's small businesses."
Reporting Costs
The EPA estimates that the cost of compliance would be $160 million for the private sector, with costs decreasing to $127 million in later years. Affected entities would need to submit their first annual report to the EPA in 2011, for calendar year 2010, except vehicle and engine manufacturers, which would begin reporting for the 2011 model year.
The EPA has the authority to develop this rule under the Clean Air Act. The proposed rule will be open for public comment 60 days following its publication in the Federal Register, and during the comment period two public hearings will be held.