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Frequently Asked Questions: Mandatory Reporting of Greenhouse Gases Rule

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General Information on Rule

Applicability

 Rule Implementation

Relationship of Rule to Existing Activities

Additional Information

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General Information on Rule

What is the action being taken?
EPA is issuing a regulation to require reporting of greenhouse gas (GHG) emissions from all sectors of the economy in the United States. The final rule applies to fossil fuel suppliers and industrial gas suppliers, direct greenhouse gas emitters and manufacturers of vehicles and engines outside of the light-duty sector1.  The rule does not require control of GHGs, rather it requires only that sources above certain threshold levels monitor and report emissions.  EPA’s analysis shows that the rule will not affect homeowners, small businesses, schools, or commercial establishments such as drycleaners or retail stores. This rule was prepared in accordance with the FY2008 Consolidated Appropriations Act, which was signed into law in December 2007. EPA issued the rule pursuant to its authority under the Clean Air Act.

What is the purpose of the rule?
The purpose of the rule is to collect accurate and timely data on greenhouse gas (GHG) emissions that can be used to inform future policy decisions.

When is the effective date of the rule?
The effective date is 60 days after the rule is published in the federal register. The Mandatory Reporting of Greenhouse Gases Rule was published in the federal register on October 30, 2009 and thereby the effective date is December 29, 2009.

How does the rule differ from the proposed rule issued in April 2009?
There are multiple changes from the proposed rule.  Some of the these changes include

  • Electronics manufacturing
  • Ethanol production
  • Fluorinated GHG production
  • Food processing
  • Industrial landfills
  • Magnesium production
  • Oil and natural gas systems
  • SF6 from electrical equipment
  • Underground coal mines
  • Wastewater treatment
  • Suppliers of coal

Who will have to report under the final rule?
In general, the rule calls for fossil fuel suppliers and industrial gas suppliers, manufacturers of vehicles and engines outside of the light-duty sector, and certain downstream facilities that emit greenhouse gases (primarily large facilities emitting 25,000 metric tons of carbon dioxide equivalent (mtCO2e) or more of GHG emissions per year) to submit annual reports to EPA.

I noticed the subpart that applies to my facility was not finalized. Please confirm that this means I will not have to report.

At this time, the Mandatory Reporting of Greenhouse Gases Rule does not include the following subparts: electronics manufacturing, ethanol production, fluorinated GHG production, food processing, magnesium production, oil and natural gas systems, SF6 from electrical equipment, underground coal mines, industrial landfills, wastewater treatment, and Suppliers of coal.

Note, however, that other sources at these facility types may be subject to the requirements of the rule.  For example, stationary fuel combustion sources at any facility are subject to the requirements of 40 CFR part 98, subpart C if general stationary fuel combustion emissions exceed the 25,000 metric ton CO2e threshold.

EPA plans to further review public comments and other information before finalizing these subparts. For more information concerning the decision to exclude each of these subparts from the final rule, visit Section III of the preamble to the final rule.

Which greenhouse gases (GHGs) are covered under the rule?
The rule will require reporting of anthropogenic GHG emissions covered under the United Nations Framework Convention on Climate Change (UNFCCC); carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFC), perfluorochemicals (PFC), and sulfur hexafluoride (SF6), as well as other fluorinated gases (e.g., nitrogen trifluoride and hydrofluorinated ethers). These gases are often expressed in metric tons of carbon dioxide equivalent (mtCO2e).

When does the final rule go into effect?
On September 22, 2009, the rule was signed by the Administrator and was published in the Federal Register on October 30, 2009.  The final rule goes into effect December 29, 2009. As discussed below, the rule requires reporters to begin monitoring on January 1, 2010.  The first reports will be due on March 31, 2011.  

Are mobile sources included in this rule?
Yes, EPA will collect greenhouse gas (GHG) emissions rate information from the manufacturers of new vehicles and engines outside of the light-duty sector, including heavy trucks, motorcycles, and non-road engines and equipment.  We incorporated these requirements into the long-standing criteria emissions testing and reporting requirements under Title II of the CAA (Clean Air Act), and built from existing testing methods.  Mobile source emissions will also be accounted for through upstream reporting by suppliers of petroleum products and coal-based liquid fuels. We are not requiring facilities to report emissions from mobile sources at their operations such as fleets.

Requirements related to light-duty vehicles (including light-duty trucks and medium-duty passenger vehicles) are not included in this rulemaking. EPA has proposed a comprehensive light-duty GHG emission control program commencing in model year (MY) 2012 which includes GHG measurement and reporting.  For more information visit EPA’s Office of Transportation and Air Quality website: http://www.epa.gov/otaq/climate/regulations.htm

What is the definition of a “facility”?
The rule defines “facility” as any physical property, plant, building, structure, source, or stationary equipment located on one or more contiguous or adjacent properties in actual physical contact or separated solely by a public roadway or other public right-of-way and under common ownership or common control, that emits or may emit any greenhouse gas.  Operators of military installations may classify such installations as more than a single facility based on distinct and independent functional groupings within contiguous military properties.

Will EPA collect data at the unit-, facility-, or corporate-wide level?
For the majority of reporters, EPA will collect data at the facility level. There are a few exceptions where there will be reporting at the corporate level for some supplier source categories (e.g., importers of fuels or industrial greenhouse gases or manufacturers of vehicles and engines outside of the light-duty sector).  For some source categories, the final rule does require the reporter to provide information at the unit-level or process-line level, as well as for the facility as a whole.

What is the estimated cost to implement this rule?
EPA estimates that the expected cost to comply with the reporting requirements to the private sector is $115 million for the first year. In subsequent years, the estimated annualized cost for the private sector is $72 million.

What impact does this rule have on small businesses?
As a part of the Regulatory Impact Analysis for this rule, EPA has calculated that this rule will not have a significant economic impact on a substantial number of small entities. While EPA estimates that some small businesses in some sectors will be required to report, the cost of reporting will be less than one percent of the average annual sales, even for the sectors with the largest economic impacts. For more information on this topic please view the rule itself and view the Small Business Information Sheet on the Information Sheet page.

Did EPA engage stakeholders in the development of the rule?
Yes. EPA staff held more than 150 meetings with over 4,000 stakeholders attending, including trade associations, industries, state and regional governments, environmental groups, and tribal associations during the public comment period and finalization of the rule.  In addition, two public hearings on the Proposed Mandatory Greenhouse Gas Reporting Rule were held in April 2009.  EPA also received approximately 16,800 written comments during the rule’s public comment period.

Was my comment submitted during the public comment period addressed?
EPA received nearly 17,000 comments regarding the proposed rule. EPA considered these comments in preparing the final rule signed on September 22, 2009. Responses to the comments received can be located in the “Response to Comments” documents at:
http://www.epa.gov/climatechange/emissions/responses.html

Is this rule a cap and trade regulation?
The purpose of the final rule is to collect accurate and timely data on greenhouse gas (GHG) emissions that can be used to inform future policy decisions. It is not a cap and trade regulation.

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Applicability

Does the rule apply to U.S. Territories?
Yes, for the purposes of the rule, “United States” is defined as including the 50 states, the District of Columbia, the U.S. possessions and territories.

How did EPA develop the general threshold of 25,000 metric tons of carbon dioxide equivalent (mtCO2e) per year?
EPA considered several factors when developing the reporting threshold, including the form of the threshold (e.g., emissions/year, potential to emit, capacity-based, facility or unit level). EPA reviewed existing capacity-based (e.g., 25 megawatts) and emissions-based thresholds used in other GHG emissions programs (e.g., California’s 25,000 mtCO2e) and the 10,000 mtCO2e levels used in some voluntary programs, such as the Department of Energy’s (DOE’s) 1605b program. Based on our review, EPA has determined that the selected 25,000 metric ton CO2e threshold will cover many of the types of facilities and suppliers typically regulated under the CAA, while appropriately balancing emission coverage and burden.   EPA estimated that at a threshold of 25,000 metric tons of mtCO2e/year, approximately 10,000 facilities and 85 percent of total GHG emissions will be covered.  At the 10,000 mtCO2e/year level, EPA found that there would be a higher economic impact on small businesses including small industrial facilities and commercial buildings.

How much is 25,000 metric tons of CO2 equivalent (mtCO2e) ?
25,000 mtCO2e are equivalent to emissions from the annual energy use of approximately 2,300 homes.  The threshold is also roughly equivalent to the annual greenhouse gas (GHG) emissions from approximately 4,600 passenger vehicles.  It is also equivalent to just over 58,000 barrels of oil consumed or 131 railcars’ worth of coal. For more information about GHG emissions equivalencies in general you may access EPA’s Greenhouse Gas Equivalencies Calculator.

Are there some sectors where all facilities have to report regardless of whether they meet the 25,000 metric tons of carbon dioxide equivalent (mtCO2e) annual threshold?
Yes. For some of the source categories, all of the facilities that have that particular source category within their boundaries will be subject to the rule. For these facilities, EPA’s analysis indicated that all or nearly all facilities with that source category emit more than 25,000 mtCO2e per year, and that an “all in” would simplify their applicability determination.  These source categories include large manufacturing operations such as petroleum refineries and cement production. For more information on which source categories will be covered, please review the rule and view the General Provisions Information Sheet on the Information Sheet page.

Are there some source categories that were included as subparts in the proposed rule that are not included in the final rule?
Yes. At this time, EPA is not going final with the following subparts that were included in the proposed rule.  

As we consider next steps for these subparts, we will be reviewing the public comments and other relevant information. For additional discussion of our reasons for not finalizing these particular source categories at this time, see the individual subsections in Section III of the preamble.

Will all direct emitters of greenhouse gases (GHGs) be included in the rule?
No. Direct emissions from entities that do not contain a source category where all entities are required to report and whose emissions fall below the threshold of 25,000 metric tons of carbon dioxide equivalent (mtCO2e) per year are not required to report. Also, certain emissions sources were not included in the rule due to difficulty in measurement and gathering data. These sectors include many of the biological sources of GHG emissions such as methane emissions from rice production and enteric fermentation from cattle and other ruminant animals. EPA’s objective was to maximize coverage of U.S. emissions while minimizing administrative burden to reporters and the government. Lastly, there are a number of source categories that were included in the proposed rule that EPA is not finalizing at this time.  For these source categories, EPA is further considering comments and options.  This rule is estimated to cover about 85 percent of total national U.S. emissions.

Is there a simple way for facilities with stationary fuel combustion units to determine if they will be required to report?
Yes.  In order to reduce burden on small emitters, EPA is not including any facility that has an aggregate maximum rated heat input capacity of the stationary fuel combustion units of less than 30 mmBtu/hr and no other emission sources within their boundary. Stationary combustion units include among others boilers, combustion turbines, engines, incinerators, and process heaters. According to our analysis, a facility with stationary combustion units that has a maximum rated heat input capacity of less than 30 mmBtu/hr will not exceed the threshold of 25,000 metric tons of carbon dioxide equivalent (mtCO2e) per year.  In the event that the aggregate maximum rated heat input capacity of the stationary combustion units at the facility exceed 30 mmBtu/hr, then the facility will need to do further calculations to determine if it meets the threshold for reporting. EPA has developed an on-line applicability tool to help facilities assess if they are required to report.  This tool is available on the Greenhouse Gas (GHG) Mandatory Reporting Rule Website. For more information on this topic please view subpart C of the rule and view the Stationary Fuel Combustion Sources Information Sheet on the Information Sheet page.

Will individual home owners be required to report under this rule?
No. The general stationary fuel combustion source category covers units that generate electricity, steam, or useful energy or heat for industrial, commercial or institutional use.  Also, it is important to note that the average annual household emissions in the U.S. are about 11 metric tons of carbon dioxide equivalent (mtCO2e), well below the threshold for reporting of 25,000 mtCO2e per year.

Will individual car or truck owners be required to report?
No. Under the rule, emissions from mobile sources will be covered by reports from fuel suppliers and manufacturers of vehicles and engines outside of the light-duty sector.  No data will be collected from fleet operators or vehicle owners in this rule.

Will owners of commercial buildings be required to report?
The vast majority of commercial building owners will likely not be required to report. For commercial operations, over 75 percent of buildings have combustion equipment less that 1 mmBtu/hr.  When it comes to commercial buildings having boilers for heating water and steam, approximately 80 percent of the buildings have boilers less than 10 mmBtu/hr. These are well below the threshold for aggregate maximum rated heat input capacity of the stationary fuel combustion units of less than 30 mmBtu/hr. If a commercial building does have an aggregate maximum rated heat input capacity equal to or greater than 30 mmBtu/hr, then that facility will need to do further calculations to determine if it meets the threshold for reporting. EPA has developed an on-line applicability tool to help facilities assess if they are required to report.  This tool is available on the GHG Mandatory Reporting Rule Website.

Will federal, state, or local facilities have to report emissions?
The majority of building owners or operators will very likely not be required to report, including federal, state, or local facilities. Most federal, state, or local facilities will likely only have to consider whether their emissions from stationary combustion are over 25,000 metric tons of carbon dioxide equivalent (mtCO2e), because they will not have other onsite operations that may trigger the rule (e.g., a power plant). Over 75 percent of buildings have stationary combustion equipment with an aggregate maximum rated heat input capacity of less that 1 mmBtu/hr. When it comes to most buildings with boilers for heating water and steam, approximately 80 percent of buildings have boilers with an aggregate maximum rated heat input capacity of less than 10 mmBtu/hr. These are well below the threshold for aggregate maximum rated heat input capacity of the stationary fuel combustion units of less than 30 mmBtu/hr. If a building does have an aggregate maximum rated heat input capacity 30 mmBtu/hr or greater, then that facility will need to do further calculations to determine if it meets the threshold for reporting.  EPA has developed an on-line applicability tool to help facilities assess if they are required to report.  This tool is available on the Greenhouse Gas (GHG) Mandatory Reporting Rule Website.

If a federal, state, or local facility has other source categories that are included in the rule, such as a power plant (see the General Provisions Information Sheet on the Information Sheet page) the facility may be required to report. Generally, EPA estimates that there will be limited impact on federal, state, or local facilities.

Federal, state, or local facilities will not have to report emissions from fleets (e.g., passenger vehicles, aircraft, and marine vessels) or from Research and Development (R&D) activities under the rule.

Are terrestrial carbon sequestration (“sinks”) and offsets projects included in this rule?
No. This rule focuses solely on reporting of emissions, or fuel or chemicals that cause emissions. It is not meant to be a registry tracking individual projects or reductions; nor is it intended to replace the Inventory of U.S. Greenhouse Gas Emissions and Sinks.

Why are both downstream and upstream reporting required?
This rule responds to a specific request from Congress to collect data on greenhouse gas (GHG) emissions from both upstream production and downstream sources, as appropriate.  The rule requires reporting by facilities that directly emit GHGs above the selected threshold as a result of combustion of fuel or industrial processes (downstream sources).  The majority of these reporters are large facilities in the electricity generation and industrial sectors.  The rule also requires upstream suppliers of fossil fuels and industrial GHGs to report the GHG emissions that could be emitted from combustion or use of the quantity of fuels or industrial gases supplied into the economy.  In many cases, the fossil fuels and industrial GHGs supplied by producers and importers are used and ultimately emitted by a large number of small sources.  To cover these direct emissions would require reporting by hundreds or thousands of small facilities.  To avoid this impact, the rule does not include all of those emitters but instead requires reporting by the suppliers of industrial gases and suppliers of fossil fuels. 

The data collected under this rule are consistent with the appropriations language and provide valuable information to EPA and stakeholders in the development of climate change policy and programs.  Potential policies such as low carbon fuel standards can only be applied upstream, whereas end-use emission standards can only be applied downstream.  Data from upstream and downstream sources would be necessary to formulate and assess the impacts of such potential policies.  Eliminating reporting by either upstream sources or downstream sources would not satisfy EPA’s data needs and policy objectives of this rule.

Will there be double-reporting of emissions under this rule?
Yes. There is inherent double-reporting of emissions in a program that includes both upstream and downstream sources.  For the reasons discussed above, collecting greenhouse gas (GHG) emissions from both upstream production and downstream sources is consistent with the request from Congress and provides valuable information to EPA and stakeholders in the development of climate change policy and programs.  That said, EPA does not intend to use emissions data collected by this rule as a replacement for the national emission estimates found in the annual Inventory of U.S. GHG Emissions and Sinks. That Inventory is a comprehensive, top-down national assessment of U.S. GHG emissions, and it uses top-down national energy data and other national statistics.  Whereas this rule, collects GHG emissions data from certain sources over a specific threshold and the data collected will serve as a useful tool to better improve the accuracy of future national-level inventories.  

What representative of a reporting facility is in charge of reporting? For example, is it the operator or facility owner?  What if a contractor operates a facility owned by someone else? Lastly, can a third party be hired to report on behalf of the reporting facility?
As described in Section II.A.4 of the preamble, reports must be submitted by the designated representative in accordance with the provisions in 40 CFR 98.4 (Authorization and Responsibilities of the Designated Representative).  Facility owners and operators must select a designated representative for their facility.  The rule allows owners and operators the flexibility to select any person as their designated representative, including third party representatives such as contractors.  The designated representative must submit a certification of representation at least 60 days before the deadline of the facility or supplier's initial report (due on March 31, 2011 for the first reporting period).  For additional information on how to submit reports and the role of the designated representative, see Sections V.A. and V.B. of the preamble.

How is the reporting of ethanol production and/or biogenic emissions being handled in the rule?
Ethanol production facilities are not excluded from the rule.  The sources of GHG emissions at ethanol production facilities that were to be reported under the proposed rule were stationary fuel combustion, onsite landfills, and onsite wastewater treatment. At this time, the Mandatory Reporting of Greenhouse Gases Rule does not require emissions from onsite industrial landfills and wastewater treatment to be reported (see Question 1). Stationary fuel combustion sources at ethanol production facilities are subject to the requirements of the rule if those emissions exceed the 25,000 metric tons CO2e threshold. 

Refineries that meet the definition of petroleum supplier must report any ethanol that is co-processed with petroleum in order to subtract biogenic emissions from the final calculation of emissions that would result from the complete combustion or oxidation of products supplied. CO2 suppliers that supply biogenic CO2 to the economy (such as ethanol plants with CO2 capture equipment) must report that supply.

Carbon dioxide emissions from the combustion of biomass are not counted toward a facility’s emissions in the threshold determination, but emissions of CH4 and N2O from biomass combustion are counted in the threshold determination.  All biogenic emissions are to be reported separately under the rule.

The Applicability Tool says I need to report, but I don’t think the tool is right. Please confirm. 
The applicability tool is intended solely as compliance assistance for potential reporters to aid in assessing whether they are required to report under the Mandatory Reporting of Greenhouse Gases Rule. Any variation between the rule and the information provided in this tool is unintentional, and, in the case of such variations, the requirements of the rule govern.

The applicability tool and its contents do not constitute rulemaking or a decision by EPA and may not be relied upon to create a substantive or procedural right or benefit enforceable by law, or in equity, by any person. While this tool is designed to help potential reporters comply with the rule, compliance with all Federal, State, and Local laws and regulations remains the sole responsibility of each facility owner or operator subject to those laws and regulations. Use of this tool does not constitute an assessment by EPA of the applicability of the rule to any particular facility. In any particular case, EPA will make its assessment by applying the law and regulations to the specific facts of the case.

No information entered by the user is maintained by EPA, and any results generated by the applicability tool, along with additional information entered by the user, do not constitute a submission for purposes of compliance with the rule.

Is applicability based on actual emissions or potential emissions?
If you are required to estimate your emissions to determine if your facility is subject to the rule, the applicability determination is based on actual emissions.

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Rule Implementation

How often will entities be required to report?
In general, EPA will require annual reporting. The first reports will be submitted to EPA on March 31, 2011 and will provide data for the year 2010 emissions. Some facilities and suppliers that currently report similar data more frequently to other mandatory programs, such as the Acid Rain Program and fuels program, will continue the current practice as well as submit annual greenhouse (GHG) emission reports under this rule.

When will the reporting begin?
Reporters will begin collecting data on January 1, 2010.  Reporters will be required to submit their first greenhouse (GHG) emissions report to EPA on March 31, 2011. This report will provide data on emissions from the year 2010. Vehicle and engine manufacturers will report carbon dioxide (CO2) for all mobile source categories outside of the light-duty sector beginning with model year 2011 and other GHGs in subsequent model years as part of existing EPA certification programs.2

How will confidential business information be handled?
EPA will protect any information claimed as confidential business information (CBI) in accordance with regulations in 40 CFR Part 2, subpart B. However, in general, emissions data collected under CAA sections 114 and 208 cannot be considered CBI.  EPA intends to undertake a notice and comment process to establish those data elements that are “emissions data” and therefore will not be afforded the protections of CBI.  As part of that exercise, in response to requests provided in comments, we may identify classes of information that are not emissions data, and are CBI.  EPA plans to initiate this effort later this year, or in early 2010. 

How will emissions data be verified?
EPA will verify the data submitted.  EPA will not require third party verification.  Prior to EPA verification, reporters will be required to self-certify the data they submit to EPA.  In selecting the approach to emissions verification, EPA reviewed all of the comments, as well as emissions verification requirements and procedures under a number of existing EPA regulatory programs and domestic and international greenhouse gas (GHG) reporting programs.  We decided to retain the self certification with EPA verification approach because it provides greater assurance of accuracy and impartiality than self-certification without verification, and has a number of advantages over third party verification for this type of Federal program.  We determined that the combination of comprehensive electronic review and a flexible and adaptive program of on-site auditing will enable EPA to effectively target verification resources while also providing the necessary consistency and quality in the data.  Additionally, this approach is the best way to address the many comments we received on the importance of obtaining 2010 data.

Will EPA provide training and guidance for reporters?
Yes.  EPA is providing a wide variety of tools that will assist potential reporters to comply with this rulemaking.  EPA has developed an on-line applicability tool that will assist potential reporters to assess whether they would be required to report.  In addition, EPA has developed several guidance documents that are available on our website.  Finally, EPA will be hosting a number of webinars and attending meetings to provide information to reporters about the final requirements.  For the latest outreach information please visit our website at:  http://www.epa.gov/climatechange/emissions/ghgrulemaking.html

There are currently no CEMS available at my facility. Is there a provision to allow calculations of Tier 1, 2 or 3 if the cost of purchasing and installing CEMS will be seriously detrimental to the company?
Only certain facilities are required to rely upon a continuous emissions monitoring system (CEMS).  The six conditions that must be met in order for Tier 4 methodology to be required using CEMS are described in Section 98.33 (b)(4)(ii).  One of the six conditions is that the unit has installed CEMS that are required either by an applicable Federal or State regulation or the unit’s operating permit. 

If a facility has a stationary combustion source and is required to report following Tier 4 methodology, the facility is required to begin reporting on January 1, 2010 using CEMS and the Tier 4 calculation methodology.  If all of the monitors needed to measure CO2 mass emissions have not been installed and certified by January 1, 2010, the facility has until January 1, 2011 to begin using Tier 4 methodology.  In this case, the facility may use Tier 2 or Tier 3 methods to report GHG emissions for 2010, and the facility is not required to receive prior approval from EPA.

When will the electronic reporting system become available and when will EPA offer training?
EPA intends to have the electronic reporting system operational in January 2011, approximately three months in advance of the March 31, 2011 reporting deadline.  EPA intends to make training on the emissions reporting system available in fall 2010 and continuing into 2011. The electronic reporting system will include a separate module for registering users and facilities, scheduled to be operational by summer 2010 and training should be offered at that time.

Will EPA provide the opportunity to review the data system, provide input and beta test?
Will EPA provide the opportunity to review the data system, provide input and beta test? Please contact EPA if you are interested in participating in beta testing. EPA will limit the number of beta testers by source category.

When are reporters required to complete their GHG Monitoring Plan?
The EPA requires that the Monitoring Plan will be developed by no later than April 1, 2010, which is the date when the full monitoring approach will be implemented by most sources. The purpose of plan is to document the process and procedures for collecting and reviewing the data needed to estimate annual GHG emissions. Therefore, this plan needs to be in place prior to collecting data to ensure that consistent and accurate data are collected. The EPA estimates that 3 months is a reasonable time for a source to develop this plan since, as explained in the preamble to the final rule, the plan does not have to be complex and can rely on existing corporate documents like SOPs and Monitoring Plans developed for compliance with other air programs. While some facilities may use best available methods to estimate GHG emissions for a period beyond 3 months (after April 1, 2010), facilities still need to have a plan developed for the basic procedures that will be used to collect data. A facility's data collection methods may change and evolve as the facility gains experience with monitoring equipment and develops more effective procedures for data management. Under the final rule, the Monitoring Plan must be revised to reflect these changes.

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Relationship of Rule to Existing Activities

Does this final rule preempt states from regulating or requiring reporting of greenhouse gases (GHGs)?
No.  This rule does not preempt or replace state reporting programs.  This rule has been developed in response to a specific request from Congress (in the Appropriations Act) and is narrower and more targeted than many existing state programs that are coupled with GHG emission reduction programs.  Many state programs are broader in scope, in a more advanced state of development, and have different policy objectives than this rulemaking.  EPA supports and recognizes the success and necessity of state programs as a vital component of achieving GHG emission reductions.  EPA is committed to working with states and regional programs to coordinate implementation of reporting programs, reduce burden on reporters, provide timely access to verified emissions data, and harmonize data systems to the fullest extent possible.

Will data collection be delegated to state agencies?
EPA carefully considered the issue of state delegation, particularly in light of the leadership and experience of several states in developing greenhouse gas (GHG) reporting and reduction programs, and also in the context of the pressing need for a nationwide reporting program and the strong emphasis placed in the vast majority of the rule comments for EPA to ensure that data collection begins on January 1, 2010 and that data are reported early in 2011.  We determined that developing a program to delegate to states would take additional time and would not be available for 2010 reporting, and we also determined that a significant number of states would likely not request delegation, which would increase the complexity of assembling a consistent national data set.  For these reasons, we determined that the most effective way to achieve nationwide GHG reporting of 2010 data was for reporters to submit data directly to EPA, as proposed.  While EPA is not formally delegating rule implementation and enforcement to states, we are committed to working in partnership with states to address the issues related to the interaction between state and federal reporting programs. 

How will data be efficiently shared among existing state greenhouse gas (GHG) programs and this new federal reporting program?
Reporting entities will report directly to EPA.  In order to reduce the burden of reporting, EPA staff is working with states, The Climate Registry and the Exchange Network on a data exchange standard for GHG reporting.  EPA is committed to working with state and regional programs to provide timely access to verified emissions data, establish mechanisms to share data efficiently, and harmonize data systems to the extent possible.  We are working to create an expanded version of the Consolidated Emission Reporting Schema (CERS), a data reporting format broadly adopted by facilities and states for air pollution reporting to EPA’s National Emissions Inventory, that will be compatible with the GHG Mandatory Reporting Rule.  We are also working to ensure GHG data collected and published by EPA in electronic formats including CERS is compatible with the needs of states and other GHG stakeholders.

How is this reporting rule different from the Inventory of U.S. Greenhouse Gas Emissions and Sinks report (Inventory)?
The Inventory is a comprehensive top-down national assessment of national greenhouse gas (GHG) emissions, and uses national energy data and other national statistics. The use of the aggregated national data means that the national emissions estimates are not broken down at the geographic or facility level. In contrast, this reporting rule focuses on bottom-up data and individual sources above appropriate thresholds. While the rule will provide more specific data, it will not provide full coverage of total annual U.S. GHG emissions, as is required in the development of the Inventory of U.S. Greenhouse Gas Emissions and Sinks in reporting to the United Nations Framework Convention on Climate Change (UNFCCC). The Inventory is developed by EPA annually, in consultation with other U.S. agencies, as a required under the UNFCCC.

Will this rule negate the need for the Inventory of U.S. Greenhouse Gas Emissions and Sinks in the future?
No. The data collected under this rule will not replace the system in place to produce the comprehensive annual national greenhouse gas (GHG) inventory. However, it may serve as a useful tool to better improve the accuracy of future national-level inventories.

Would this rule need to be addressed in Title V operating permits?
Currently, the Mandatory Reporting of Greenhouse Gases Rule requirements do not have to be incorporated into a facility's Title V permit.  For an explanation of why Title V permits are not impacted by this rule, please see Section II.S (Summary of Comments and Responses on Other Legal Issues) in the preamble.

However, as part of a separate action, EPA proposed new regulatory requirements on September 30, 2009 that would establish thresholds for when Clean Air Act permits under the New Source Review and Title V operating permits programs would be required.  For a copy of the proposed rule and additional information on this  action, please see http://www.epa.gov/nsr or contact Mr. Joseph Mangino, Air Quality Policy Division, Office of Air Quality Planning and Standards (C504-03), Environmental Protection Agency, Research Triangle Park, NC 27711 (telephone number: (919) 541-9778; e-mail address: mangino.joseph@epa.gov).

How could the passing of the Waxman-Markey Bill affect this regulation?
The purpose of the Final Mandatory Reporting of Greenhouse Gases Rule is to provide accurate data for a range of future policy  decisions.  It is premature for EPA to speculate at this time on what legislation will be passed and the potential affect on the rule.

How will the GHG Reporting Rule fit in or be harmonized with state and local reporting obligations for criteria pollutants, toxics, and state-specific GHG reporting requirements?
Greenhouse gas emissions data collected under the Final Mandatory Reporting of Greenhouse Gases Rule will be appended to NEI/EIS (National Emissions Inventory/Emissions Inventory System), the agency repository for criteria and toxics emissions data. EPA expects that most facilities and suppliers reporting under the rule will already be in EIS.  Where state GHG reporting requirements closely align with the mandatory reporting rule, EPA is working with states to share data and minimize the reporting burden.  Where state GHG reporting requirements go beyond the mandatory reporting rule, EPA is working with states and stakeholders to explore options to harmonize reporting requirements. 

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Additional Information

Where can I find more detailed information on the rule?
Federal Register copies of the rule and supporting documents may be found at www.regulations.gov or on the  Mandatory Greenhouse Gas Reporting Rule web site, at www.epa.gov/climatechange/emissions/ghgrulemaking.html. The Federal Register docket number for this rule is Docket ID No. EPA-HQ-OAR-2008-0508.

An overview presentation for the rule, information sheets that explain the rule for a broad range of sectors, and other relevant information are available under the “Resources” section of our website for this rulemaking.
General and administrative questions about the rule can also be directed to EPA via email at GHGMRR@epa.gov or through the Contact Us page.

1 The light-duty sector includes passenger cars and trucks.

2 For aircraft engine manufacturers, reporting requirements will apply for the engine models in production in 2011.

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