Expert Analysis | New York businesses subject to reporting regulations for greenhouse gas emissions – amNewYork – amNewYork

New York State Implements Mandatory Greenhouse Gas Reporting Program

Introduction

The New York State Department of Environmental Conservation (DEC) has finalized regulations establishing a mandatory greenhouse gas (GHG) reporting program under New York Codes, Rules and Regulations Part 253. This initiative aligns with the Sustainable Development Goals (SDGs), particularly SDG 13 (Climate Action), by promoting transparency and accountability in emissions reporting. New York becomes the third U.S. state to require such emissions reporting, with regulations similar to those in California.

Regulatory Background and Alignment with SDGs

This program implements a key provision of the Climate Leadership and Community Protection Act (CLCPA), which mandates aggressive statewide GHG reductions:

1. 40% reduction by 2030
2. 85% reduction by 2050

These targets are measured against 1990 emission levels and support SDG 13 by addressing climate change mitigation. The program also contributes to SDG 12 (Responsible Consumption and Production) by encouraging sustainable industrial practices.

Additionally, the DEC’s actions support the northeast Regional Greenhouse Gas Initiative’s (RGGI) requirements for tracking CO₂ emissions from large fossil fuel-fired power plants, reinforcing regional cooperation for climate action.

Context and Motivation

• The program responds to the dismantling of the EPA’s GHG Reporting Program under the previous federal administration, emphasizing state-level leadership in climate governance (SDG 16: Peace, Justice and Strong Institutions).
• DEC engaged stakeholders by releasing draft regulations in March 2025, receiving over 3,000 public comments, which led to adjustments such as extended verification deadlines, demonstrating inclusive governance.

Scope and Reporting Requirements

The following entities must comply with the reporting requirements:

• Emitters of at least 10,000 metric tons of CO₂ annually
• Power plants, industrial facilities, landfills, waste-to-energy facilities, anaerobic digesters
• Fuel suppliers and waste haulers transporting emissions-generating waste out of state

Reporting includes data on stationary combustion, fugitive emissions, and upstream emissions for certain sectors. Third-party verification is mandated for some facilities, with initial deadlines extended by two years to ensure accuracy and reliability.

Purpose and Future Implications

Currently, the regulations require only data collection without immediate emission reduction obligations or allowance purchases. However, this comprehensive emissions database will underpin future regulatory programs, including potential carbon-pricing mechanisms similar to RGGI’s allowance auction framework. This aligns with SDG 9 (Industry, Innovation and Infrastructure) by fostering innovation in emissions monitoring and management.

Implications for Large Emitters

• New compliance responsibilities necessitate robust monitoring and record-keeping systems by 2027.
• Reported data will inform future emission caps, trading programs, and enforcement actions, supporting SDG 11 (Sustainable Cities and Communities) through cleaner industrial operations.
• Public accessibility of emissions data will increase reputational and environmental, social, and governance (ESG) scrutiny, promoting corporate responsibility (SDG 12 and SDG 16).

Enforcement and Penalties

Non-compliance with DEC’s reporting requirements may trigger enforcement under Environmental Conservation Law Article 19, including administrative penalties:

• Minor violations addressed under DEC’s DAR-23 Policy
• Significant violations calculated under Policy DAR-24
• Civil penalties range from $500 to $18,000 for first-time violations, with increased penalties for repeat offenses

Regional Comparison

Neighboring states are advancing similar initiatives:

• Massachusetts will require GHG reporting for large entities and fuel suppliers under its Clean Heat Standard starting next year.
• Connecticut and New Jersey currently require power plants to monitor and report CO₂ emissions.
• New Jersey is developing a consumption-based emissions inventory program.

Best Practices for Compliance

1. Early Readiness: Initiate preparations for 2026 emissions tracking promptly; integrate with existing EPA Part 98 reporting where feasible.
2. Data Management System: Utilize DEC’s NYS GHG Reporting Tool (NYS e-GGRT) and prepare for the new emissions reporting platform.
3. Third-Party Verification Planning: Identify qualified verifiers and allocate budget for verification expenses.
4. Cross-Functional Coordination: Engage environmental, legal, and finance teams to ensure alignment with ESG reporting and CLCPA obligations.
5. Stay Informed: Monitor DEC guidance, webinars, and FAQs to remain updated on regulatory developments.

Conclusion

The establishment of New York’s mandatory GHG reporting program marks a significant step toward achieving the state’s climate goals and advancing the Sustainable Development Goals. Businesses must act swiftly to comply and contribute to a sustainable future through transparent emissions reporting and proactive environmental management.

Authors

Gene J. Kelly and Alfred E. Smith Jr. are members of Harris Beach Murtha’s environmental practice group. Abbie L. Eliasberg Fuchs, Daniel R. Strecker, and Alessandra G. Ash are members of the firm’s mass torts and industry-wide litigation practice group.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 13: Climate Action
   • The article focuses on mandatory greenhouse gas (GHG) emissions reporting and reduction targets, directly addressing climate change mitigation efforts.
2. SDG 7: Affordable and Clean Energy
   • References to fossil fuel-fired power plants and emissions reporting relate to cleaner energy production and transition.
3. SDG 12: Responsible Consumption and Production
   • Reporting requirements for waste-to-energy facilities, landfills, and fuel suppliers imply responsible management of resources and waste.
4. SDG 9: Industry, Innovation and Infrastructure
   • Implementation of monitoring, reporting, and verification systems encourages innovation and infrastructure for environmental compliance.

2. Specific Targets Under Those SDGs Identified

1. SDG 13: Climate Action
   • Target 13.2: Integrate climate change measures into policies and planning — reflected in the Climate Leadership and Community Protection Act (CLCPA) mandating 40% GHG reduction by 2030 and 85% by 2050 from 1990 levels.
   • Target 13.3: Improve education, awareness, and human and institutional capacity on climate change mitigation — implied by public consultation and stakeholder engagement in rulemaking.
2. SDG 7: Affordable and Clean Energy
   • Target 7.2: Increase substantially the share of renewable energy in the global energy mix — indirectly supported by tracking emissions from fossil fuel power plants to encourage cleaner alternatives.
3. SDG 12: Responsible Consumption and Production
   • Target 12.4: Achieve environmentally sound management of chemicals and wastes — through reporting requirements for landfills, waste-to-energy facilities, and waste haulers.
4. SDG 9: Industry, Innovation and Infrastructure
   • Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable — reflected in the requirement for businesses to establish monitoring and record-keeping systems.

3. Indicators Mentioned or Implied to Measure Progress

1. Indicator for SDG 13.2:
   • Total greenhouse gas emissions (metric tons of CO₂ equivalent) reported annually by entities emitting over 10,000 metric tons CO₂.
   • Percentage reduction in GHG emissions compared to 1990 baseline levels (40% by 2030, 85% by 2050).
2. Indicator for SDG 7.2:
   • CO₂ emissions from large fossil fuel-fired power plants (25+ megawatt) as reported under the program.
3. Indicator for SDG 12.4:
   • Number and volume of emissions reported from waste management facilities, including landfills and waste-to-energy plants.
4. Indicator for SDG 9.4:
   • Number of facilities implementing third-party verification and robust emissions monitoring systems.
   • Compliance rates and enforcement actions under Environmental Conservation Law Article 19.

4. Table of SDGs, Targets, and Indicators

Source: amny.com