Environmental News for You - Special

The EPA Finalizes Mandatory GHG Reporting Rule

September 25, 2009

On September 22, the USEPA released its final federal mandatory greenhouse gas (GHG)
estimation and reporting rule. It will be published shortly in the Federal Register and
officially go into effect sixty (60) days from that date. It will be 40 CFR Part 98. Most
affected industries will be required to begin to collect appropriate data beginning in
calendar year 2010 and report emissions for that year in 2011 and annual emissions
thereafter. Therefore, with precious little time remaining this year to set up your
systems and procedures before appropriate data must be collected and handled, it is
imperative that you understand the rule’s requirements and prepare for it NOW.

The USEPA said that the program will apply to approximately 10,000 facilities
accounting for about 85% of national GHG emissions. These include several dozen
industrial categories, as well as any facility that emits 25,000 metric tons or more of CO2
equivalents per year. The USEPA has stated it wants accurate emissions data as it will
use the inventory as a precursor to potential future mandatory carbon cap and trade rules.

Bill’s Provisions

The USEPA made a number of changes from the draft bill published in April 2009 based
on public comment. One of the largest is leaving 12 industry segments on hold. These
facilities must still calculate GHG emissions from combustion per Subpart C. The rule
excludes facilities from reporting if GHG emissions if shown to be below 25,000 metric
tons/year for five straight years or below 15,000 metric tons/year for three straight years.

The rule requires accurate GHG emissions (in metric tons/year) to be developed at the
facility level, with some exceptions, such as suppliers of fossil fuels and industrial gases,
which must report on the corporate level and assume all of their product sold is utilized.
Emissions of the main, recognized six GHGs (CO2, CH4, N2O, SF6, HFCs, and PFCs)
must be addressed. CO2 emissions must be divided between biogenic (from combustion
of biomass) and all other fuel sources. Ongoing annual emissions (beginning CY 2010)
must be calculated and submitted in an electronic report to the USEPA by March 31 of
each year (beginning in 2011). The report must be describe the methodology and contain
a monitoring plan. It must be certified by a facility Designated Representative that the
information submitted is true, accurate and prepared in accordance with 40 CFR Part 98.

Because of the late date of the finalization of the rule, for the period of January 1 through
March 31, 2010, best available monitoring (BAM) methods may be used for parameters
that cannot reasonably be monitored using the methodology defined. Beginning April 1,
2010, BAM can only be used if pre-approved by the USEPA in writing; by December 1,
all published monitoring methods must be in place.
Climate Change & Environmental Services, LLC
Tel.: 914-584-6720 Fax: 914-777-1279
climatechangeenv@gmail.com www.CCESworld.com
 Environmental News for You - Special
How to Prepare.

If your facility has been on the fence about this rule, well, it’s time to get off right now.
There is precious little time before the rule goes into effect, January 1, 2010. Some steps:

1. Does this new rule, in fact, apply to your facility? Go through the list of
industrial categories in Subpart A. Also, determine whether your facility (covered
by a category or not) meets the annual 25,000 metric ton CO2 equivalent emission
limit or not. Most GHG emissions derive from combustion. Table C-1 contains
emission factors for different fuels for the initial estimate. Determine other GHG
emissions (i.e., methane loss) before concluding whether the threshold is met.

2. Obtain a full understanding of the emission calculation procedures. Read

through the applicable section(s) and gain an understanding of the nature of the
required monitoring, data collection, and calculation methodologies. It is possible
that either new monitoring equipment will be needed or existing equipment will
need to be used differently. Make sure that any selected equipment or procedures
meet the section’s QA/QC guidelines and fits in with your facility and personnel.

3. Ensure that the new procedures or technology can be used in your facility.
Proper purchase orders, instructions, training, etc. must be attained so that a new
monitoring or data collection process can be incorporated into SOPs smoothly.

4. Perform a “practice run” before the end of 2009. If the procedures for data
collection can be incorporated very soon, perform a run of data collection this
year – perhaps for one week or one month. Use the data to calculate GHG
emissions and determine whether the procedures are working smoothly and
producing the high quality GHG emission data required by the USEPA.

5. Create or refine your software to store activity and GHG emission data. You
have gone through a lot of trouble to collect the proper data. Now it’s important to
reliably store the data for easy access and records. Also, ensure that it can issue
reports useful to you for submittal to the USEPA and for your internal purposes.

And finally, inform your colleagues of the important aspects of this rule, ranging from the
Designated Representative and managers to floor staff who will be collecting data so that
the entire data collection, emission calculation, and reporting processes will go smoothly.

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This document is not meant to be a complete summary of the final GHG emission and
reporting rule. All entities should work with a qualified professional when preparing for
the federal GHG emission calculation and reporting program. CCES has the experienced
professionals to assist you in preparing your facilities to comply with this rule.
Climate Change & Environmental Services, LLC
Tel.: 914-584-6720 Fax: 914-777-1279
climatechangeenv@gmail.com www.CCESworld.com