EPA to Mandate Emissions Reporting

When Congress approved the federal budget for fiscal year 2008, it also instructed the U.S. Environmental Protection Agency (EPA) to mandate reporting of greenhouse gas emissions. EPA has now proposed a rule that would require companies in many industries to report their emissions to EPA, accounting for 85%–90% of emissions in the U.S.

The proposed rule would require all facilities producing 25,000 metric tons or more of greenhouse gases to report their emissions to EPA starting in 2011; EPA would verify the reports. This action would affect approximately 13,000 facilities, including manufacturers of raw and finished materials as well as electricity plants, and cost them approximately $0.04 per metric ton, according to EPA. Facilities failing to file reports with the agency would be subject to fines and criminal prosecution through the provisions of the Clean Air Act.

According to David Rich, an associate with the climate and energy program at the World Resources Institute, the federal program is growing out of state and regional programs that have been in the works for some time. “This is the first step towards a comprehensive approach to regulating greenhouse gas emissions,” he said. He added that EPA’s enforcement capability makes the new rule a “real-deal mandatory program.” Once a mandatory reporting system is in place, it will be easier to institute a cap-and-trade or carbon-tax system. Both the Obama administration and Congress are exploring such carbon regulations, according to Rich, although no details are yet available.