On April 10, 2009, the U.S. Environmental Protection Agency (EPA) published in the Federal Register a proposed rule that would require reporting of annual greenhouse gas (GHG) emissions from a wide range of sources, including all facilities that produce cement and manufacture lime. The agency is seeking public comment on the proposed threshold for reporting and whether to include monitoring and reporting requirements for in-use fleets, as well as other provisions in the proposed rule. Comments are due June 9, 2009.
In general, the proposed rule would require certain facilities to monitor and report their GHG emissions directly to EPA on an annual basis. When the rule is finalized, facilities will need to determine whether 1) their activities alone trigger the reporting requirements or 2) their emissions levels meet the threshold for reporting. EPA has identified approximately twenty categories of industrial activities that are large sources of emissions. Facilities that perform those activities must report emissions. For example, ALL facilities that engage in the production or manufacturing of cement, lime, iron, or steel would need to monitor and report their emissions.
The proposed rule would not require control of GHG emissions, but will likely complement a future federal program to reduce emissions by providing baseline information and a structure to track emissions and progress. The FY08 Omnibus Appropriations bill, signed Dec 26, 2007, charged EPA to develop a rule "to require mandatory reporting of greenhouse gas emissions above appropriate thresholds in all sectors of the economy." EPA expects to finalize the rule mid-2009. Facilities covered by the rule would need to submit their first annual report by March 31, 2011 for the calendar year 2010, except for vehicle and engine manufacturers, which would begin reporting for model year 2011.
What Would Be the Impact on the Construction Industry?
According to discussions with EPA staff and an initial review of the proposed rule, AGC expects that the stationary emissions from most general construction firms would be less than the required amount for reporting. AGC members involved with cement production (use of kilns and raw mills at any Portland cement manufacturing facility) and other major sources of emissions would need to monitor and report emissions. In addition, members with large fleets may be affected should EPA decide to include mandatory reporting of fleet-wide in use emissions data. AGC would appreciate feedback from members related to their concerns with the proposed rule. Please send feedback to Melinda Tomaino at tomainom@agc.org. AGC will carefully review the proposed rule and submit comments to the agency in advance of the deadline.
Who Would Report?
EPA estimates that approximately 13,000 facilities, accounting for about 85 percent to 90 percent of greenhouse gases emitted in the United States, would be covered under the proposal. The gases covered by the proposed rule are carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFC), and other fluorinated gases. A facility would be required to report if it meets one of the requirements below.
- Petroleum refineries, power plants, Portland cement plants, landfills, and other large operations were identified by EPA as specific source categories wherein all of the facilities that have that particular source of emissions within their boundaries would be subject to the proposed rule. Facilities would have to report combined emissions regardless of the amount of CO2 equivalent emitted annually.
- If the facility does not contain any of the source categories above that automatically trigger mandatory reporting, then it will need to determine and report if it emits 25,000 metric tons per year CO2 equivalent (tpy CO2e) of combined emissions from stationary fuel combustion, miscellaneous carbonate use, and other source categories identified in the rule. These source categories include electronics, food processing, industrial wastewater, etc.
- If the facility does not contain any of the source categories listed in the previous requirements, then it will need to determine and report if they emit 25,000 metric tpy CO2e from stationary combustion. These sources typically include boilers, process heaters, engines in stationary equipment, etc. If the maximum rated heat input capacity for all stationary fuel combustion equipment is less than 30 million British thermal units (Btu) per hour, then EPA assumes that the facility emits less than 25,000 metric tpy CO2e and the facility does not have to calculate or report emissions. EPA materials indicate that many small businesses, homes, most commercial buildings, and most sources in the agricultural sector may not be required to report as their emissions would be below the threshold.
- If the facility is a supplier of fossil fuels in any calendar year starting in 2010, then it would report the volume of fuel and the emissions associated with the complete oxidation of the fuel. Suppliers include producers, importers, and exporters.
- Suppliers of industrial GHGs, such as fluorinated gases, in any calendar year starting in 2010 would report the annual volume of product and emissions associated with the complete release of the product.