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U.S. EPA issues Mandatory Greenhouse Gas Reporting
Final Rule

The United States Environmental Protection Agency (EPA) issued its Final Mandatory Greenhouse Gas Reporting Rule (Final Rule) on September 22, 2009. The Final Rule, to be published in the Federal Register in October, is not substantively different from the proposed version, although numerous refinements were added as a result of public comments.

All sources within specified categories that emit 25,000 metric tons of greenhouse gases (GHGs or CO₂e) are required to report emissions for the calendar year 2010 before March 30, 2011. Large combustion sources and many manufacturing sources fit within the terms of the Final Rule but smaller sources, such as small manufacturing sources, most commercial buildings and residences, do not.

The methods of calculating emissions from different sources are spelled out in the Final Rule, although alternate methods may now be proposed by covered entities. Reporting is required at the facility level and will be reported to EPA directly, not to states.

EPA estimates that about 10,000 entities are affected and that they represent 85 percent of the U.S. GHG emissions. Mobile sources are not included in the Final Rule although suppliers of fossil fuels must report.

The Final Rule does not mandate any GHG emission reductions or any action by individual sources to reduce emissions. The Final Rule does allow sources who reduce to below 15,000 CO₂e metric tons for three consecutive years to cease reporting.

For more information, EPA has published a summary of the Final Rule, fact sheets, and a summary of changes made from the Proposed Final Rule at its website, http://www.epa.gov/climatechange/emissions.

If you have questions about the Final Rule and whether it applies to you, please give us a call.

RECENT ENVIRONMENTAL PUBLICATIONS

"One Small Step for USEPA; A Giant Leap Toward Coordinated Regulation of Air Emissions for the Power Sector," Environmental Update (September 15, 2009)
"Discharge of RCRA Cleanup Obligation in Bankruptcy Less Certain Following Recent Seventh Circuit Decision in U.S. v. Apex Oil," Environmental Update (September 1, 2009)
"Over $100 Million in Federal Recovery Funding Available for Renewable Energy and Energy Efficiency Projects in Illinois," Environmental Update (August 27, 2009)
"Illinois Passes Law Expanding Financing For Clean Coal, Coal and Renewable Energy Projects," Environmental Update (August 26, 2009)
"EPA Proposes Revised NO₂ Standards," Environmental Update (July 10, 2009)

ABOUT SCHIFF HARDIN LLP

Schiff Hardin's diverse environmental practice advises clients engaged in a wide variety of industries and commercial endeavors such as electric generation, natural gas distribution and production, chemical manufacturing, auto and auto parts manufacturing, consumer goods manufacturing, real estate development and investments by financial institutions and equity investors.

For more information, contact us.