On March 26, 2025, the New York State Department of Environmental Conservation (DEC) published for public comment proposed regulations for a Mandatory Greenhouse Gas (GHG) Reporting Program (GHG Reporting Rule). According to the DEC, the proposed GHG Reporting Rule is part of the state’s efforts to gather information to support the reduction of GHG emissions to meet the goals of the Climate Leadership and Community Protection Act (CLCPA). The New York State legislature authorized the DEC to establish rules and regulations necessary to meet the CLCPA’s goals of reducing GHG emissions from 1990 levels by 40 percent by 2030 and by 85 percent by 2050, which includes measures to limit or reduce GHG emissions or “establish an alternative compliance mechanism.”
The proposed GHG Reporting Program is an effort by the DEC to collect GHG emission and related data to provide a framework for a CLCPA alternative compliance mechanism, namely a cap and invest program that would set an annual cap on the amount of statewide GHG emissions and require large emitters to purchase or obtain allowances. The proposed GHG Reporting Rule, however, is solely for reporting and would not require GHG emission reductions or the purchase of allowances.
Emission sources subject to the proposed GHG Reporting Rule include facilities that emit 10,000 metric tons or more of CO2e per year, fuel suppliers, waste haulers and transporters, electric power entities, and agricultural lime and fertilizer suppliers. As proposed, reports will be required annually. For the first report, the DEC considers emission sources that meet certain criteria in any year from 2023 through 2025, or any time after January 1, 2026, to be reportable by June 1, 2027. Entities that meet or exceed the Large Emission Source thresholds are required to have their GHG emission data and product data verified by DEC accredited third-party verifiers. For example, a facility that meets or exceeds 25,000 metric tons CO2e emissions per year is considered a Large Emission Source. Under the proposed rule, the first verification report would be due no later than August 10, 2027.
The DEC will accept public comments on the proposed GHG Reporting Rule from April 2, 2025, to July 1, 2025. Five public hearings (three in-person and two virtual) will be held in June 2025, and two virtual informational webinars will also be held. Information on how written comments can be submitted and the times for public hearings can be found here. More information on the proposed GHG Reporting Program can be found on the DEC website.
If you have any questions regarding the content of this alert, please contact Emma Marshall, associate, at emarshall@barclaydamon.com; Danielle Mettler-LaFeir, partner, at dmettler@barclaydamon.com; or another member of the firm’s Environmental Practice Area.