Quick Facts on the Greenhouse Gas Reporting Rule



Posted: Saturday, February 06, 2010

by
Earth Phone

Stringent new requirements are covered under a mandatory greenhouse gas reporting rule intended to reach into all sectors of the economy. The requirement is a major part of the US government's mandatory regulatory program, designed to regulate emissions of carbon dioxide, nitrous oxide, methane, sulfur hexafluoride, perfluorocarbons, hydrofluorocarbons and certain other compounds.

Such greenhouse gas emissions are known to directly contribute to global warming due to the irreversible damage it causes to the ozone layer. There is pressure to make the voluntary reporting mandatory and to levy heavy penalties on companies that fail to comply with the mandate.

Incentives await those who actively participate in the government's initiative for greenhouse gas emissions reduction, including 'cap and trade' operation which does not only help reduce carbon emissions but also help companies gain financial advantage.

For some time now regulations and protocols have existed which detailed voluntary submissions, but this latest mandatory greenhouse gas reporting rule notches the issue up. Such new rules are already extensions to reporting programs like the Climate registry and other legislation by government and protocols by NGOs.

The greenhouse gas reporting rule identifies 40 categories of GHG sources and sets out detailed requirements. Some of the categories included are: electricity generation, food processing, oil and natural gas systems, petroleum refineries, wastewater treatment, coal suppliers, underground coal mines and so on. EPA requires any source that is over 25,000 MT per year of carbon equivalent emissions to be reported, even if it is not under any of these categories.

The proposes greenhouse gas reporting rule endorsed by EPA is intended to cover suppliers of fossil fuels, manufacturers of cars and engines and other industries which potentially contribute high GHG emissions. Emissions must be reported on a facility level. Whilst the mandate does not currently suggest that the facilities owner or parent company be identified, many are calling for this to be modified as there is a need to record accurate data about corporate sustainability on a company by company basis.

Corporate identifiers are essential due to the variance in performance due to several factors as well as the financial standing of the umbrella company. If the parent is identified it is reasoned that more accurate data may be reported and that the risk of establishing a conflicting conclusion from incomplete date be decreased.

It is proposed that the first mandatory greenhouse gas reporting rule is due by 2011, and refer to calendar year 2010, although vehicle manufacturers will begin reporting for their model year 2011.

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