The New York State Department of Environmental Conservation (DEC) recently proposed a rule to require mandatory greenhouse gas (GHG) reporting beginning in 2027 (Part 253). The proposed rule would impose reporting requirements for a number of entities that engage in activity in New York state, including electric power entities1 of all sizes, fuel suppliers, and certain facilities that emit 10,000 or more metric tons of carbon dioxide equivalent2 (CO2e) per year. It adds new obligations, including emissions verification by a third-party auditor and submission of an emissions monitoring plan to DEC for emission sources categorized as "large emission sources." Part 253 is intended to inform other actions regarding GHG emission reduction, including serving as a framework for a future cap-and-trade program. DEC is holding public comment hearings in the month of June and accepting public comments on Part 253 until July 1, 2025.
Background
DEC proposed Part 253 to implement the New York Climate Leadership and Community Protection Act which requires New York to reduce economy wide greenhouse gas emissions by 40% by 2030 and 85% by 2050 from 1990 levels. In compliance with the act's GHG methodology, Part 253 would require GHG emissions reporting in CO2e using the 20-year global warming potential and the incorporation of upstream out-of-state GHG emissions from electricity and fossil fuel uses.
Reporting Requirement
Part 253 proposes reporting requirements for emission sources considered to be a "reporting entity," which includes all suppliers of natural gas, petroleum products, and liquified natural gas, as well as all electric power entities. The reporting threshold and data that each reporting entity must report to DEC differs based on the type of reporting entity. For example, natural gas suppliers must report GHG emissions that result from the use of natural gas sold, transferred, or delivered to end users in New York state, as well as upstream out-of-state emissions from fossil fuel use in producing gas supplied to New York. In contrast, owners and operators of waste to energy facilities must report emissions in New York state from stationary combustion and fugitive emissions, as well as upstream out-of-state emissions from fossil fuel use required for generation of energy imported into the state.
DEC has stated it will accept GHG emissions data reported under the U.S. Environmental Protection Agency's 40 CFR Part 98 for facilities required to report under Part 98, but that all facilities that report under Part 98 that qualify as a "reporting entity" must also report under Part 253.
Large Emission Sources
Part 253 mandates additional requirements for "Large Emission Sources," or emission sources that exceed a certain level of CO2e per year. "Large Emission Sources" include:
- Facilities in New York state that meet or exceed 25,000 metric tons of CO2e per emission year
- Waste transporters that have 25,000 MT CO2e per year of emissions for out-of-state landfill and combustion facilities for all waste exported out of New York state
- Depending on the amount of fuel supplied to New York, suppliers of natural gas, petroleum products, liquified or compressed natural gas, and coal
The additional standards include working with third-party services accredited by DEC to submit verification of GHG emissions data.
The Mandatory Greenhouse Gas Reporting Rule would introduce yet another layer of complexity to emission reporting regulations. Monitoring reporting obligations under such regulations will be essential for industry, including natural gas and petroleum product suppliers and facilities that meet the threshold to be considered "large emission sources." This new rule comes on top of other rules DEC has promulgated under the 2019 Climate Leadership and Community Protection Act and the 2024 Climate Change Superfund Act (which seeks to recover $75 billion from fossil fuel companies to fund climate change adaptation projects in the state). N.Y. Sess. Laws Ch. 106 (S. 6599); S2129B/A3351B 2019. The Environmental Practice group at Arnold & Porter is closely monitoring climate-related rules and developments in greenhouse gas reporting. Clients should contact any of the authors of this post for further insights and assistance with participating in the Part 253 rulemaking process.
Footnotes
1. An "electric power entity" is an electricity importer, electricity exporter, or a retail provider.
2. CO2e is the amount of carbon dioxide by mass that would produce the same global warming impact as a given mass of another GHG over an integrated 20-year timeframe after emission.
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