Proposed EPA Greenhouse Gas Reporting Rule

On March 10, 2009 EPA announced a proposed rule (“Mandatory Reporting of Greenhouse Gases”) that would apply to an estimated 13,000+ suppliers of fossil fuel and industrial chemicals, manufacturers of motor vehicles and engines and large direct emitters of greenhouse gases (GHGs) with emissions equal to or greater than a threshold of 25,000 metric tons per year.  Those familiar with existing reporting programs should think “Form R” for GHGs.  The quickest way to get familiar with it is to review the EPA fact sheet.

The major listed GHGs are carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O) and fluorinated gases, and affected sectors range from cement, power and fuel to ethanol, food processors, landfills and large agriculture manure systems. Info sheets for each affected sector give a detailed view of sources, covered emissions and processes and how data is to be collected and reported. The Greenhouse Gas Protocol Initiative claims to be the “gold standard” for data, is cited as a base protocol by EPA and potentially may set the bar for much of the data collection.

EPA estimates that the listed sectors and sources represent approximately 90% of U.S. greenhouse gas emissions, and claims that smaller sources are not targeted for future reporting.  However, at least for the first reporting year, all sources will have to “do the math” to determine whether they are at the 25,000 metric ton threshold since there is no real way to screen them in or out.  Unless you are right at the edge, after that first year effort, it should be simple to predict from year to year based on production and throughput changes whether you’ll report.

As proposed, EPA will be responsible for verifying report data, which will require a great deal of quality sampling and data analysis by source facilities.  Many are of the opinion that the EPA cost estimate of $.04 per ton reported is low, since that equates to only $1,000 for a facility at the 25,000-ton threshold.  Again, it looks like the first year is going to be the big spending year while everyone sorts out whether they have to report.

Regarding animal production/manure handling facilities, EPA notes that only about 50 of the largest will be covered, but does not identify them.  Their info sheet includes no guidance or methodology on sampling or data collection methods.  That’s because there aren’t any.  The industry-specific Guide notes that after reviewing existing data collection programs, “EPA determined that none of the programs collect all information necessary to estimate farm-level GHG emissions from each manure management system that would report at the proposed threshold.”  It looks like they are on their own as an industry that has never seen anything like this, and will likely need assistance with developing suitable sampling and analysis protocols.

EPA is developing this rule under the authority of the Clean Air Act, and expects to finalize it in late 2009.  The first annual report would be submitted to EPA in 2011 for the calendar year 2010, except for vehicle and engine manufacturers, which would begin reporting for model year 2011.  The proposed rule is open for public comment until June 9, 2009.

Dr. Scott Harris is the Senior Risk Manager for IESO, LLC. His experience covers over 27 years of Environmental, Health and Safety Management in Federal and State government, consulting, general industry and University instruction. He received his Ph.D. in Environmental Science, with a specialization in Disaster and Emergency Management, from Oklahoma State University, and holds degrees in Geology (B.S.) and Public Health (MPH) from Western Kentucky University.  Before joining IESO, Scott was a Federal On-Scene Coordinator for EPA Region 6 and a member of their Emergency Readiness Team.  He held DOD “Top Secret” and DOE “Q” security clearances, and directed multi-agency emergency response, planning and recovery activities for chemical, biological and radiological releases and exercises within the five-state region.

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