GHG Mandatory Reporting Rule

On September 22, 2009 the U.S. Environmental Protection Agency issued a final rule for mandatory reporting of greenhouse gases (GHG) from large GHG emissions sources in the United States.  

Changes from the April 2009 proposal:  

There are significant changes from the April 2009 proposal.  

Applicability – Reduced the number of source and supply categories that facilities and suppliers must report under this final rule. The following source and source categories are not required to report at this time:

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

Exiting the Program – Added a mechanism for facilities and suppliers to cease annual reporting by reducing their GHG emissions.

o    Cease reporting after 5 consecutive years of emissions below 25,000 metric tons CO₂e/year.

o    Cease reporting after 3 consecutive years of emissions below 15,000 metric tons CO₂e /year.

o    Cease reporting if the GHG-emitting processes or operations are shut down.

 

Measuring Devices – Added a provision to allow use of best available monitoring methods in lieu of the required monitoring methods for January – March 2010. Facilities can request a date extension beyond March 2010, but EPA will not approve any requests for an extension beyond 2010.

 

Monitoring Equipment – In several subparts, added monitoring options, changed monitoring locations, or allowed engineering calculations to reduce the need for installing new monitors.

 

Sampling Frequency – For fuel combustion and some other source categories reduced the required frequency for sampling and analysis.

 

Exemption – Excluded R&D activities from reporting.

 

Quality Assurance – Added calibration requirements for flow meters and other monitoring devices including a five percent accuracy specification.

 

Report Revision – Added provision to require submittal of revised annual GHG reports if needed to correct errors.

 

Records Retention – Changed the general records retention period from 5 years to 3 years.

 

Verification – In several subparts, required more data to be reported rather than kept as records to allow EPA to verify reported emissions.

 

Combustion Sources – Added exemptions for unconventional fuels, flares, hazardous wastes, and emergency equipment. Reduced the need for mass flow monitors for some units or fuels. Allowed more facilities to aggregate reporting of emissions from smaller units rather than report emissions for each individual unit.

 

Manure Management Systems – Added an animal population threshold to reduce the burden of determining applicability. Reduced the monitoring requirements. 

Highlights of GHG reporting rule 

Categories that will need to report under the final GHG reporting rule:  

There are three types of sources that will need to report GHG emissions: upstream sources, downstream sources and mobile sources. The tables below provide details for each of these sources. 

Upstream Sources

Suppliers of Coal-based Liquid Fuels	Suppliers of Petroleum Products
Suppliers of Natural Gas and Natural Gas Liquids	Suppliers of Industrial GHGs
Suppliers of Carbon Dioxide (CO2)

 Downstream Sources

General Stationary Fuel Combustion Sources	Lime Manufacturing
Electricity Generation	Miscellaneous Uses of Carbonates
Adipic Acid Production	Nitric Acid Production
Aluminum Production	Petrochemical Production
Ammonia Manufacturing	Petroleum Refineries
Cement Production	Phosphoric Acid Production
Ferroalloy Production	Pulp and Paper Manufacturing
Glass Production	Silicon Carbide Production
HCFC-22 Production and HFC-23 Destruction	Soda Ash Manufacturing
Hydrogen Production	Titanium Dioxide Production
Iron and Steel Production	Municipal Solid Waste Landfills
Lead Production	Zinc Production
	Manure Management

 Mobile Sources – Vehicles and engines outside of the light-duty sector.

 Reporting Thresholds:

The emission based threshold is 25,000 metric tons of carbon dioxide equivalent (CO₂e) per year for most sources (other than mobile sources). The capacity based threshold will be used where appropriate and feasible. Approximately 85% of total U.S. greenhouse gas emissions covered by rule. It is estimated that there will be 10,000 reporters.  

There is an applicability tool online to help facilities assess whether they are required to report GHG, available here. 

Reporting Methodologies: 

Facilities already reporting and collecting emissions data for programs such as the Acid Rain Program must use direct measurement of emissions. Other source categories can use facility-specific calculations. Industrial gas ad fossil fuel suppliers use direct reporting of gas produced, imported and exported.  

Annual Reporting to EPA: 

Data collection will begin January 1, 2010 with the first reports submitted to EPA by March 31, 2011. Those facilities already reporting quarterly for existing mandatory programs (e.g. Acid Rain Program) will continue to report quarterly.  

Emission Verification: 

Reports will self-certify and submit emissions and activity data necessary for verification. EPA will have targeted audits. EPA can take enforcement action for non-compliance. This approach is consistent with most EPA programs.  

Mobile Sources: 

Emissions from mobile sources will be captured by reports from fuel suppliers and manufacturers of vehicles and engines. Note: There is no requirement for fleet operators or state and local governments to calculate GHG emissions from mobile sources.  

Confidential Business Information: 

EPA will protect any information claimed as confidential business information (CBI) in accordance with regulations in 40 CFR § 2, subpart B. In general, emissions data collected under CAA sections 114 and 208 shall be available to the public and cannot be withheld as CBI. The US EPA will undertake a separate notice and comment process next year on CBI status of data elements collected (comments received on the proposed rule will be considered as EPA develops the notice).  

Relationship to State and Regional Programs: 

This rule does not preempt States from regulating or requiring reporting of GHGs. USEPA will not delegate this program to the states. Reporting entities will report directly to EPA. For additional information on the relationship between the US EPA and the West Virginia GHG program is available in the following article.  

Electronic Data System: 

The USEPA is developing an electronic based reporting system. The system will be web-based. The web-based system will guide reporters through data entry and submission. There will be a mechanism to submit the electronic file directly using standard format (e.g. XML). There will be continued stakeholder input during system development. Once a system is developed, USEPA will provide training and hotline to assist reporters using the system.  

This article was excerpted from publically available information, and was authored by Joyce Gentry, Acacia Environmental Group LLC. For more information on the author see here.