October 15, 2013

The USEPA proposed to amend the recordkeeping and reporting requirements of the Greenhouse Gas (GHG) reporting rule (40 CFR Part 98), for certain categories of reporters. The USEPA saw the need to address what types of data inputs in GHG emission calculations are confidential business information (CBI).

In the Clean Air Act, “emission data” cannot be kept confidential. Therefore, the USEPA proposed in 2010 that emission equations used by a facility for its GHG emission reporting meet the definition of “emission data” and could not be protected as CBI. Many facilities that must perform and submit to the USEPA these emission calculations are heavy manufacturing and chemical facilities, who became concerned that such unique, critical data about their processes, such as listing all raw materials used and their volumes and overall production data, may not be protected as CBI and become public knowledge. In response to strong public comments, USEPA deferred reporting requirements until 2013 for some data, and 2015 for others, to allow a full evaluation.

In last month’s proposed rule, the USEPA suggested that facilities use an agency-developed input verification tool that would verify detailed data used in calculations, yet not have this tool and its inputs available for publishing because of CBI.

Entities affected by this proposal are facilities that are direct emitters of GHGs and tend to be in the heavy manufacturing and chemical manufacturing industries. The USEPA has proposed that facilities subject to this proposed rule change that use information that is potentially CBI to calculate and report GHG emissions, use the electronic inputs verification tool being developed by the USEPA, which would calculate and also verify GHG emissions. The USEPA provided an Internet link to a “pilot” for its inputs verification tool within the USEPA’s Electronic Greenhouse Gas Reporting Tool (e-GGRT). Of course, with the government shutdown, the “pilot” is not available.

The USEPA is seeking comments from the business community about the rule and the pilot modified e-GRRT system as to its functionality. Public comments on the proposal are presently due on November 12, 2013, but will undoubtedly be delayed by the shutdown. While this proposal is focused on the GHG Reporting Rule (40 CFR Part 98), this approach to CBI will undoubtedly affect other environmental programs, as well. Therefore, it is important to keep abreast of the final rule change on this issue.

CCES has the technical experts and experience to calculate emissions of GHGs or any other regulated air pollutant from a variety of processes and sources using approved, published methodologies. Contact us today at 914-584-6720 or karell@CCESworld.com.