US proposes emissions reporting plan

The US Environmental Protection Agency (EPA) has developed a plan for a national system that would compel large emitters and carbon-intensive producers to report emissions of carbon dioxide and other greenhouse gases.

In a statement issued this week, the EPA said while there were numerous state-level initiatives around greenhouse gas reporting, the new system would be the first nationwide official mechanism.

"In developing the reporting requirements, EPA considered the substantial amount of work already completed and underway in many states, regions and voluntary programs," the EPA stated.

The Climate Registry is one such existing voluntary scheme that is currently supported by more than 40 US states.

Approximately 13,000 facilities, accounting for about 85 to 90 per cent of greenhouse gases emitted in the US, would be covered under the proposal, according to the EPA.

“Our efforts to confront climate change must be guided by the best possible information,” said EPA administrator Lisa P Jackson. “Through this new reporting, we will have comprehensive and accurate data about the production of greenhouse gases. This is a critical step toward helping us better protect our health and environment – all without placing an onerous burden on our nation’s small businesses.”

According to the EPA, the new reporting requirements would apply to suppliers of fossil fuel and industrial chemicals, manufacturers of motor vehicles and engines, as well as large direct emitters of greenhouse gases with emissions equal to or greater than a threshold of 25,000 metric tons per year.

But at a time when the US economy is struggling to maintain any sort of momentum other than downwards, the EPA was keen to point out that most small businesses would not be affected by the legislation. "The vast majority of small businesses would not be required to report their emissions because their emissions fall well below the threshold," the EPA stated.

However, the EPA greenhouse gas reporting plan is sure to be met with hostility by some sections of the business community who will be unwilling to spend on the administration required to comply with the scheme with the economy in such dire straits.

"The EPA estimates the expected cost to comply with the reporting requirements to the private sector would be $160m for the first year. In subsequent years, the annualised costs for the private sector would be $127m," the organisation stated.

The EPA wants companies who fall under the proposed regulation to submit their first annual greenhouse gas emissions report in 2011 for the calendar year 2010, except for vehicle and engine manufacturers, which would begin reporting for model year 2011.

EPA says it is developing the reporting scheme under the authority of the Clean Air Act. "The proposed rule will be open for public comment for 60 days after publication in the Federal Register. Two public hearings will be held during the comment period," the EPA stated.