USA - Greenhouse Gas Reporting Program: Federal Regulations for the Mandatory Reporting of GHG Emissions

Background

The Greenhouse Gas Reporting Program (GHGRP) is an initiative by the Environmental Protection Agency (EPA) in the United States aimed at tracking and managing greenhouse gas (GHG) emissions from major sources across the country. Established in 2009 under the Clean Air Act and last amended in 2024, the GHGRP builds upon earlier EPA programs such as the Acid Rain Program (1990), which targeted reductions in sulphur dioxide (SO2) and nitrogen oxides (NOX) in the power sector, and the Climate Leaders Program (2002), which sought to assist companies in the development and implementation of Greenhouse Gas (GHG) reduction strategies. Unlike its predecessors, the GHGRP mandates large emitters to report annually on several other types of greenhouse gases, ensuring greater transparency and accountability in the fight against climate change. The program serves as a foundation for policymaking and regulation by providing accurate data on national emissions trends. The EPA publishes all GHG emissions data not eligible for confidential treatment on a publicly accessible data tool. 

Requirements of the GHGRP

The GHGRP mandates affected companies (see next section) to monitor, measure, and report their greenhouse gas emissions using EPA-approved methodologies. All reports are made through the EPA’s Electronic Greenhouse Gas Reporting Tool (e-GGRT). The program provides specific methods for calculating emissions, including direct measurement using continuous emissions monitoring systems (CEMS) and engineering calculations using fuel consumption. The choice of calculation method may depend on existing environmental monitoring systems and other relevant factors. The emission calculation method used by a reporter can change from year to year (or within the same year, if required), provided they comply with the requirements for the selected method. The GHGRP mandates reporting at the facility level and specifies different reporting requirements for direct GHG emitters and suppliers (for whom emissions do not occur at their facility but are spread out across the country), and for importers and exporters of specific GHGs. Each facility must submit its annual GHG emissions report for a given calendar year by March 31 of the following year (e.g. the report for the year 2024 is due by March 31, 2025). All reports submitted to the EPA undergo internal verification. 

Which companies are affected?

The GHGRP mandates the reporting of GHG emissions from facilities that emit 25,000 metric tons or more of carbon dioxide (CO2)-equivalent per year in the United States. The program affects a range of companies, industries, and sectors that contribute significantly to GHG emissions. These include power plants, petroleum and natural gas systems, chemical manufacturers, landfills, cement production facilities, etc. Transportation-related emissions are also partially covered, particularly those associated with fuel suppliers. In total, the program affects over 8,000 facilities across the United States, responsible for 85-90% of the country’s total greenhouse gas emissions. The EPA has provided an applicability tool for companies to check whether they are affected by the GHGRP.

Penalties for noncompliance

Companies under the scope of the GHGRP regulations that fail to submit accurate and timely reports, or that fail altogether to submit their annual report, could face significant penalties including fines and imprisonment for specific company executives. In March 2022, the EPA issued 14 Notices of Violation to companies for noncompliance with their hydrofluorocarbon (HFC) reporting obligations under the GHGRP. These companies, primarily HFC importers, submitted their reports late, thereby compromising the integrity of the reporting program.