On March 10, 2009, U.S. EPA proposed a rule that would require mandatory reporting of GHGs from large sources in the United States. U.S. EPA believes that the proposed rule will assist the Agency in collecting accurate and comprehensive emissions data in order to better inform U.S. EPA in its future policy decisions.

In general, the proposed rule would require reporting of the GHGs from fossil fuel suppliers and suppliers of industrial gas (e.g., fluorinated gases, nitrous oxide, carbon dioxide), as well as to entities which directly emit GHGs. Notably, the proposed rule does not require control of GHGs, rather it requires only that sources above certain threshold levels monitor and report emissions.

Generally, if a facility contains any of the source categories listed in 40 CFR 98.2(a)(1) of the proposed rule, the facility may be required to report emissions from all source categories at the facility for which calculation methodologies are provided in any subpart of the proposed rule. The source categories discussed in 40 CFR 98.2(a)(1) include, but are not limited to, petroleum refineries, cement production facilities, aluminum production and lime manufacturing facilities. Notably, in addition to these categories, a number of additional industries may be subject to the proposed rule.

Further, a facility may be required to report under the proposed rule if the facility emits 25,000 metric tons of carbon dioxide equivalent or more in combined emissions from stationary fuel combustion, miscellaneous carbonate use and any specific source categories listed in 40 CFR 98.2(a)(2) of the proposed rule. Examples of source categories listed by 40 CFR 98.2(a)(2) include, but are not limited to, industrial landfills, zinc production, iron, steel and lead production.

Additionally, a facility may be required to report if it meets all three of the conditions listed in 40 CFR 98.2(a)(3). These three conditions are: (i) the facility does not contain any source category designated in 40 CFR 98.2(a)(1) and (a)(2). (ii) the aggregate maximum rated heat input capacity of the stationary fuel combustion units at the facility is 30 mmBtu/hr or greater. (iii) the facility emits 25,000 metric tons carbon dioxide or more per year from all stationary fuel combustion sources.

Finally, under certain circumstances, suppliers of fossil fuels or industrial gases may be required to report the volume of fuel that is placed into the economy each year. In addition to the above considerations, a number of other issues must be considered to determine whether a particular facility is subject to these regulations.Therefore, a detailed analysis of the proposed rule should be conducted to determine the proposed rule's applicability to a specific facility. Please see U.S. EPA's guidance document entitled: General Provisions, Proposed Rule: Mandatory Reporting of Greenhouse Gases for detailed information about the specific facilities and suppliers which may be required to report GHG emissions under the proposed rule.