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EPA Issues Final Rule Requiring Four Sources to Monitor and Report Greenhouse Gas Emissions
07.14.2010
EPA Issues Final Rule Requiring Industrial Waste Landfills, Industrial Wastewater Treatment Facilities, Underground Coal Mines, and Magnesium Producers to Monitor and Report Greenhouse Gas Emissions
On Monday, July 12, 2010, the U.S. Environmental Protection Agency (EPA) announced a final rule requiring four sources of greenhouse gases to monitor and report (but not control) greenhouse gas (GHG) emissions above certain thresholds. The rule is part of the EPA's comprehensive effort to establish a nationwide GHG-reporting program using its authority under the Clean Air Act.
The rule creates monitoring and reporting requirements for: (1) magnesium production; (2) underground coal mines; (3) industrial waste landfills; and (4) industrial wastewater treatment. Facilities containing or consisting of magnesium production, industrial waste landfills, and/or industrial wastewater treatment must monitor and report GHGs if they emit at least 25,000 metric tons of CO2-equivalent per year. Underground coal mines subject to sampling by the Mine Safety and Health Administration must monitor and report any and all GHG emissions.
Affected facilities are required to begin monitoring on January 1, 2011 and report their GHG emissions by March 31, 2012. The EPA has noted that the data from 2011 will be crucial to developing a robust and forward-looking GHG policy.
The EPA declined to make ethanol production and food processing subparts within the rule because facilities engaged in those activities are covered by existing emission source categories. The EPA also chose not require coal suppliers to monitor and report predicted emissions from the coal they produce because almost all emissions from coal combustion are already accounted for by other reporting entities.
The EPA estimates that the rule will cost these industries approximately $7.5 million in the first year and $5.5 in subsequent years (2006 dollars) for monitoring, recordkeeping and reporting, verifying and releasing data, and equipment. The EPA claims the rule will neither significantly change firms' decision-making nor considerably affect prices or quantities in affected markets. However, it could provide societal benefits by increasing transparency and accountability.
If you have questions regarding this rule proposed rule and the impacts that it may have on your company, please contact Jeff Talbert at jtalbert@preti.com or David Van Slyke at dvanslyke@preti.com with Preti Flaherty's Climate Strategy Group.