EPA’s New Mandatory GHG Reporting Rule and Solar Energy

Smoke StacksIndividuals interested in solar energy and climate policy are likely aware that the U.S. Environmental Protection Agency (EPA) published its final Mandatory Greenhouse Gas Reporting Rule in the Federal Register on October 30, 2009. (74 Fed. Reg. 56260) This regulation represents the first U.S. effort to require public reporting of certain greenhouse gas (GHG). However, few of these observers may be aware that the final rule will not require the tracking of progress by electricity consumers in reducing greenhouse gas (GHG) emissions by substituting on-site solar energy for purchased fossil fuel-fired electricity.

Nonetheless, a close reading of the final EPA rule indicates that solar energy supporters should not pack their bags and go home. Although the final rule is focused on direct emissions from electric generation sources, the Agency signaled its interest in conducting a future rulemaking to address the treatment of electricity purchases. According to the preamble to the final rule, EPA stated as follows: