New CO2 Regulations beginning January 1, 2010 

November 9th, 2009

EPA has issued the GHG Reporting Rule in final form; companies may take note of some general observations about it as follows:

The scope of coverage of the proposed GHG Reporting Rule is broad. Many facilities and operations that have not previously been subject to these types of EPA air emissions reporting requirements will now be subject for the first time commencing on January 1, 2010. For many facilities and supply operations, there will be an institutional learning curve as in-house personnel become familiar with, and develop systems to comply with, the GHG recordkeeping and reporting requirements.

Many companies may find it advantageous to engage outside consultants and advisors to assist them in determining compliance strategies or in determining whether they are subject to the GHG Reporting Rule at all.

• Large office buildings, hospitals, universities or retail facilities could have furnaces and boilers exceeding the threshold Btu capacity (30 mmBtu/hour) and be subject to the GHG Reporting Rule unless they calculate their actual carbon dioxide equivalent emissions to be below the 25,000 metric ton threshold.
• GHG emissions data developed under the GHG Reporting Rule will probably facilitate a company’s compliance with any federal GHG emissions reduction program that may be implemented in the future, whether a “cap and trade” program, a GHG permit program under the Clean Air Act or otherwise. Many companies may benefit from establishing procedures now not only to comply with the GHG Reporting Rule but also to be prepared to take affirmative action to reduce GHG emissions in the future as federal and state regulation of GHG emissions takes hold.
• GHG emissions data is useful to a company to evaluate its overall energy costs and to design programs to reduce energy consumption and increase energy efficiencies. These strategies could drop to the bottom line of many companies as energy usage becomes more efficient and energy costs are reduced. GHG emissions information could be a key part of the metrics of any such economic analysis. Enhanced energy efficiencies may cause at least some facilities that would otherwise be above the volume thresholds under the GHG Reporting Rule to fall below those thresholds so as to be exempt from the reporting requirements altogether.

Overall, companies that begin the process of implementing internal programs to keep track of and reduce GHG emissions at an early date will be better able to identify the specific challenges they face and ways to mitigate risks. Climate change assessments, and broader sustainability assessments, are best performed by a team comprised of attorneys, environmental consultants and in-house personnel to understand industry-specific and company-specific factors that allow the business to factor climate change requirements into both near-term and long-term planning.

Carbon Credit Environmental Services has over 30 years experience in helping companies identify and reduce their environmental liabilities. Call us for a free consultation at 313-879-1068 or visit us on our website, www.getcarboncreditco2.com