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On September 22, EPA released the Final Mandatory Reporting of Greenhouse Gases Rule, which will require facilities that emit over 25,000 metric tons of carbon dioxide equivalents (CO₂e) each year to collect and report data on their greenhouse gas (GHG) emissions.  Although the final rule has not been published in the Federal Register yet, the prepublication version is available on EPA’s website.  The rule will go into effect in January, so utilities should act now to determine its applicability.  The rule excludes normal process emissions from municipal wastewater treatment facilities, but a utility’s sewage sludge incinerators, boilers, and other units are included in the rule’s stationary combustion source category.  If a utility burns a large enough quantity of fossil fuels in these units, it will need to determine whether it exceeds the reporting threshold.

NACWA provided comments  to EPA on the draft rule, and many of these comments were addressed in the final rule, including the elimination of biosolids from the calculation of combustion emissions and the addition of an opt-out provision for facilities that fall below the 25,000 metric tons CO₂e threshold after reporting in previous years.  This Regulatory Alert provides information on the changes made in the final rule that may affect wastewater utilities.  Previously, NACWA issued Regulatory Alert 09-01 to provide an overview of the draft rule, and Regulatory Alert 09-02 to provide details on how to determine if an agency meets the reporting threshold, but the information in these Alerts is now out-of-date due to changes made in the final rule.  EPA has kept its original timetable for implementation of the rule, with data collection beginning on January 1, 2010, and the first report due March 31, 2011.  With this tight schedule, NACWA members should determine by the end of this year if they meet the threshold for reporting and must begin data collection on January 1, 2010.

Rule Applicability

With emissions from the wastewater treatment process excluded from the rule, clean water agencies will only need to report emissions if they emit 25,000 metric tons CO₂e or more each year from stationary fuel combustion sources.  Stationary fuel combustion sources are “devices that combust solid, liquid, or gaseous fuel generally for the purposes of producing electricity, generating steam, or providing useful heat or energy for industrial, commercial, or institutional use, or reducing the volume of waste by removing combustible matter.  Stationary fuel combustion sources include, but are not limited to, boilers, simple and combined-cycle combustion turbines, engines, incinerators, and process heaters.”

Emissions from combustion units are determined using equations contained in the final rule, with quantity of fuel combusted and emissions factors as the equation parameters.  EPA has clarified in this final rule that utilities do not need to calculate or report emissions from combustion of biosolids.  Although biosolids fit the definition of biomass given in the rule, EPA does not list biosolids in Table C-1 of Subpart C as a biomass fuel that must be included in reportable emissions.  Biogas, or captured methane, is listed in this table, though, and therefore must be reported when used as a fuel in combustion units.

Emissions from emergency power generators are not included in the required reporting, and in the final rule, EPA has excluded all emergency generators, regardless of whether or not they are permitted by the state.  EPA did not exclude de minimis sources from the reporting requirements, but it only requires reporting from sources for which an emissions calculation method is provided in the final rule.

The key question for wastewater utilities is whether they have a facility with a 30 mmBtu/hr aggregate maximum rated heat input capacity for its stationary fuel combustion units.  If so, the utility is required to calculate its emissions for that facility to determine if they meet the threshold for reporting.  NACWA recommended that EPA also provide a quantity of fossil fuel consumed to determine if emissions calculations are necessary.  This would minimize the burden for wastewater utilities with sewage sludge incinerators, which have a high heat capacity, but do not need to include emissions from the biosolids in reporting.  Although EPA did not include this information in the final rule, the Agency is recommending that facilities use the Tier 1 calculation method, which requires only annual fuel use as a parameter.  EPA is also planning to publish implementation guidance that will have simplified methods for determining applicability.  For combustion sources, this guidance will have tables that show an annual fuel consumption level and a maximum heat input capacity for each fuel type that correlates with emissions of 25,000 metric tons CO₂e.  EPA did not give an estimated date for this guidance to be released, but NACWA will notify members when it is available.

Data and Reporting Requirements

While wastewater utilities will likely be able to use the Tier 1 calculation method, using only annual fuel use as a parameter, each utility should check the applicability of the different calculation methods and determine if a monitoring system is required.  Since EPA was originally supposed to promulgate the final GHG reporting rule by the end of June 2009, but instead signed the rule in September, the Agency recognizes that facilities may not be able to have all required monitoring systems in place by the January 1, 2010 starting date for data collection.  EPA is therefore establishing a best available monitoring methods option that facilities may use for the first quarter of 2010, and facilities may submit an extension request if they need to use this option after April 1, 2010.  EPA will not grant any extensions beyond December 31, 2010.  With this option, facilities must used the calculation procedures and equations specified in the reporting rule, but may use the best available monitoring method for any parameter, such as fuel use, “for which it is not reasonably feasible to acquire, install, and operate a required piece of monitoring equipment by January 1, 2010.”  These best available monitoring methods include monitoring methods currently used by the facility that do not meet requirements of the rule, engineering calculations, supplier data, and other data.

The final rule, like the proposed rule, allows facilities that must report only emissions from stationary fuel combustion equipment to determine 2010 emissions using any of the methods given in the rule and to submit an abbreviated report.  A full report will be required for 2011 emissions.

Duration of Reporting

The draft rule used a ‘once in, always in’ approach to reporting, so that if a facility tripped the reporting threshold once, it would always be required to report emissions every year.  NACWA recommended that the rule “include an opt-out provision for facilities that reduce their GHG emissions below the threshold in the future.”  This recommended change was made, with the final rule including opt-out provisions that allow a facility to stop submitting annual reports if its emissions are less than 25,000 metric tons CO₂e per year for five consecutive years, or less than 15,000 metric tons CO₂e per year for three consecutive years.  The facility must submit a notification to EPA to explain the reasons for the reduction, which will help EPA evaluate emission reduction options for the industry.  These provisions will benefit any utilities that are required to report emissions, but later undergo plant upgrades or other treatment process changes that greatly reduce their GHG emissions.  EPA recommends that facilities close to the reporting threshold still continue to collect data, though, in case emissions increase unexpectedly during the year and reporting for that year is required.

Utilities that Must Report Emissions

NACWA would like to collect information about how its member agencies will be affected by this rule.  Please contact Cynthia Finley at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or 202/296-9836 if any of your agency’s facilities are estimated to be near the reporting threshold, or if you have any questions about the rule.