For over a decade, the US Environmental Protection Agency (EPA) has required thousands of facilities and organizations to report annual emissions of greenhouse gases (GHGs), in what it refers to as its Greenhouse Gas Reporting Program (GHGRP) (40 CFR part 98). On May 22, 2023, EPA published an extensive set of proposals to update and expand existing requirements. These proposals supplement and supersede proposals published in June 2022 but not acted on by the agency. The remainder of this note summarizes these proposals, focusing not on the many technical revisions to existing requirements but on proposals to target additional activities with reporting requirements. (I’ve written about EPA’s mandatory GHG reporting program several times, including HERE).
Read MoreAudit, Compliance and Risk Blog
EPA proposes to update and expand mandatory greenhouse gas emission reporting requirements
Posted by Jon Elliott on Fri, Jul 14, 2023
Tags: Environmental, EPA, Greenhouse Gas, Environment
Washington conducts first sales under its new state greenhouse gas cap-and-invest program
Posted by Jon Elliott on Mon, Mar 20, 2023
The Washington state Department of Ecology (Ecology) has just conducted its first auction of greenhouse gas (GHG) emission allowances, under the state’s Climate Commitment Act (or CCA) which establishes a comprehensive, market-based program to reduce carbon pollution and achieve greenhouse gas limits set in state law. The CCA was one of a package of climate-related laws passed in 2021, including the Clean Fuel Standard, and an expanded hydrofluorocarbons management program. The remainder of this note discusses CCA and the recent sale of GHG allowances.
Read MoreTags: Greenhouse Gas, ghg, greenhouse, CO2 Emissions, Washington, CCA
Proposal to Require Climate Risks and Resilience Plans from Significant Federal Suppliers
Posted by Jon Elliott on Mon, Nov 28, 2022
On November 10, the Biden Administration announced a proposal to amend the Federal Acquisition Regulation (FAR) to require “major federal suppliers” and “significant federal suppliers” to disclose their greenhouse gas (GHG) emissions and assessments of climate-related risks, and to set targets for GHG emission reductions. The rest of this note summarizes this proposal.
Read MoreTags: Environmental, Greenhouse Gas, ghg, CO2 Emissions, Environment, Environmental Policy, Climate, FAR, NASA, DOD
EPA releases data from latest mandatory greenhouse gas emission reports
Posted by Jon Elliott on Fri, Nov 18, 2022
For over a decade, the US Environmental Protection Agency (EPA) has required thousands of facilities and organizations to report annual emissions of greenhouse gases (GHGs) (40 CFR part 98). The most recent reports were due in April 2022, covering 2021 emissions from more than 8,000 entities (I summarized these requirements HERE https://blog.stpub.com/mandatory-ghg-epa-reports-due-april-1-2022). EPA has now published summary compilations of these data, showing an overall 4% increase in emissions compared with 2020. EPA attributes the increases to economic expansion coming out of the COVID-induced downturn, and reminds readers that reported emissions are generally lower than in those first reported for 2010-2011.
Read MoreTags: Environmental risks, Environmental, Greenhouse Gas, CO2 Emissions, Environmental Policy
The US had been a major player in the drafting and enactment of the Kigali Amendment (during President Obama’s administration), but then withdrew its support (during President Trump’s administration). However, the US enacted Kigali-like requirements in the December 2020 coronavirus relief bill (American Innovation and Manufacturing Act of 2020 (AIM Act)), among the many provisions buried within its 5,593 pages; EPA finalized its rules in September 2021 (I wrote about these rules here).
The remainder of this note summarizes the situation.
Why are HFCs being phased down, and how?
HFCs were developed primarily as substitutes for chlorofluorocarbons (CFCs), which are the principal ozone depleting substances (ODSs) targeted by the Montreal Protocol. HFCs have lower but non-zero ozone depleting potential, and are greenhouse gases that contribute to climate change. Accordingly, nearly 30 years after the initial 1987 approval of the Montreal Protocol roughly 200 national and international parties negotiated HFC phase-downs. As adopted in Kigali, Rwanda these amendments divide countries into three groups with different schedules and targets:- developed nations including the United States – cut consumption to 90% of 2011-2013 baseline of most HFCs (plus 15% of those already covered by the Protocol) by 2019, declining to 15% by 2036
- most developing nations, including China and over 100 others - consumption to peak in 2024 at 100% of 2011-2013 baseline of most HFCs (plus 25% of those already covered by the Protocol), declining to 20% by 2045
- 10 hot-climate developing countries (where air conditioning is particularly important), including India, Pakistan and some Gulf states - consumption to peak in 2028 at 100% of 2011-2013 baseline of most HFCs (plus 25% of those already covered by the Protocol), declining to 15% by 2047
After the Trump administration replaced the Obama administration, the US took no action on this agreement. During this period, however, other countries have moved forward to ratify and work to meet their commitments.
What HFC-related provisions did the AIM Act enact?
The massive coronavirus relief bill includes Division S (“Innovation for the Environment”), with section 103 (“American Innovation and Manufacturing Act of 2020”). Without mentioning the Kigali Amendment, section 103 incorporates its requirements into US law:- the legislation lists 18 specific HFCs, and authorizes EPA to designate additional formulations
- EPA was to calculate 2011-2013 production and consumption baselines for each, and to use these to calculate future phase-down levels ranging from 90% in 2020 to 15% in 2036 and thereafter
- EPA was to issue regulations with 270 days (by 9/23/21) to set phase-down requirements, with associated procedural requirements including allowances associated with each baseline amount, and reclamation and destruction methods
EPA’s rules are designed to meet these requirements. In addition, EPA has initiated or re-invigorated other programs to support the phase-down of HFCs and their replacement by refrigerants that are less harmful to global climate and the stratospheric ozone layer.
What now?
Ratification will become official once the US submits formal notification to the United Nations. The new rules took effect on November 4, 2021 and are progressing; EPA proposed 2024-reduction formulas on October 20, 2022.. While domestic requirements will not change from those enacted through the AIM Act, ratification returns the US to the center of international HFC-reduction efforts, and reinforces national commitments to the environment.IImplementation Checklist
- Does the organization manufacture, import or use any ozone depleting substance (ODS) subject to the Montreal Protocol and/or CAA Title VI?
- If the phase-out date for any ODS has passed, do any of the organization’s activities qualify with applicable exceptions or essential uses?
- Does the organization manufacture, import or use any HFCs?
- Has the organization reviewed any such activity to identify alternatives for any HFC that is or may become subject to phase-down under US and international law?
Where do I go for more information?
Information available via the Internet includes:
● US legislation
Tags: Environmental risks, Greenhouse Gas, climate change, Environment, HFCs, Ozone Layer, Environmental Policy, Climate
The US Environmental Protection Agency (EPA) continues to expand and refine environmental compliance requirements, including those related to greenhouse gas (GHG) emissions. In particular, facilities and organizations subject to EPA's mandatory GHG emission reporting rules should be preparing to submit reports covering calendar year 2021. The remainder of this note summarizes these requirements.
Read More
Tags: EPA, Greenhouse Gas, ghg, Environment
US tightens federal standards for greenhouse gas emissions from automobiles
Posted by Jon Elliott on Mon, Jan 24, 2022
During the last decade, federal state authorities have sparred with themselves and with states over regulatory standards limiting greenhouse gas (GHG) emissions from automobiles. Nationally, the US Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA) share authority over fleetwide and individual vehicle standards. EPA applies authority under the Clean Air act (CAA) and NHTSA applies authority under the Energy Policy and Conservation Act of 1975 (EPCA) including Corporate Average Fuel Economy (CAFÉ) standards. In addition, the state of California has unique CAA authority over vehicle emission; in recent years, Democratic presidential administrations generally produce federal-state cooperation, whereas Republican presidential administrations produce conflicts. (I’ve written about these issues several times, most recently HERE). True to this pattern, on December 21, 2021 EPA issued tighter vehicle emission rules covering Model Years (MY) 2023 through 2026, and NHTSA rescinded its (Trump era) rule preempting California’s stricter GHG emission standards. The remainder of this note discusses these new rules, within the context of ongoing rulemakings.
Read MoreTags: Environmental, Greenhouse Gas, ghg, CO2 Emissions
Regional Greenhouse Gas Initiative prepares to add a new member
Posted by Jon Elliott on Wed, Aug 05, 2020
One of the longest running sub-national greenhouse gas (GHG) control efforts in the U.S. has been the Regional Greenhouse Gas Initiative (RGGI) program. RGGI provides a cap-and-trade program covering GHG emissions from targeted fossil fuel power plants in participating northeastern states. The program is preparing to add a new participating state in 2021 -- Virginia.
Read MoreTags: Environmental, Greenhouse Gas, ghg, RGGI, Fossil Fuel, CO2 Emissions
Northeastern States Propose Regional Cap-and-Trade Program to Reduce Greenhouse Gases From Transportation
Posted by Jon Elliott on Tue, Feb 04, 2020
After nearly a decade of talking and planning, most of the northeast and middle Atlantic states (plus the District of Columbia) in the Transportation and Climate Initiative (TCI) have proposed a cap-and-trade program intended to reduce greenhouse gas (GHG) emissions from transportation. On October 1, TCI issued a “Framework for a Draft Regional Policy Proposal,” and on December 17 a formal “Draft Memorandum of Understanding (MOU)” that jurisdictions can sign to formalize their participation. If things go well, the formal program should begin in 2020.
Read MoreTags: Business & Legal, Environmental risks, Environmental, Greenhouse Gas, ghg, cap-and-trade
DC Circuit Upholds Most of EPA’s 2015 Standards For Ground Level Ozone
Posted by Jon Elliott on Tue, Sep 17, 2019
On August 23, the federal Court of Appeals for the District of Columbia (DC Circuit) upheld most aspects of the National Ambient Air Quality Standards (NAAQS) for ground level ozone adopted by the Environmental Protection Agency (EPA) in 2015. The Clean Air Act (CAA) requires EPA to create a list of air pollutants based on emissions that cause or contribute to air pollution that may reasonably be anticipated to endanger public health or welfare (criteria pollutants), to establish NAAQS based on these criteria, and to review the NAAQS every 5 years.
Read MoreTags: Business & Legal, Health & Safety, Environmental risks, Environmental, EPA, Greenhouse Gas, ghg, CAA