Bill Text

The State Environmental Resource Center’s (SERC) model Greenhouse Gas Database Act creates a mandatory greenhouse gas (GHG) reporting database for large emitters. Facilities that have direct GHG emissions of more than 10,000 metric tons of greenhouse gases (measured in carbon dioxide equivalents), or are already required to report information on any of their air emissions to a state department (such as the Department of Environmental Protection) or to the U.S. Environmental Protection Agency are required to report GHG emissions. These requirements for mandatory reporting ensure that the database is effective by collecting information on large emitters, and ensure that it is not unduly burdensome on facilities because others would already have a mechanism in place for emissions reporting.

SERC’s model bill does NOT regulate greenhouse gas emissions. Rather, it creates an inventory of major emissions within a state that allows the state and participating facility to record their emissions. Due to standardized calculations, the information from the database offers the state and facilities opportunities to seek cost-effective ways to make reductions in the likely event of a future regulatory scheme.

SERC would like to note that some states have managed to require reporting of greenhouse gases through rulemaking as opposed to the legislative process. Maine accomplished this by passing a bill, LD 87, that directs the state’s Department of Environmental Quality to adopt rules creating a voluntary greenhouse gas registry; New Jersey accomplished it by amending its rules for the state’s Emissions Statement Program to include certain greenhouse gases. If this option is available in your state, it could be a quicker and easier way to achieve reporting of greenhouse gases.

Several northeast states are launching a regional registry – the Regional Greenhouse Gas Registry (RGGR). This regional effort may be another option for states who wish to join an existing reporting and registry scheme. States interested in a voluntary emissions registry should contact the California Climate Action Registry or monitor the progress of the RGGR initiative to explore opportunities for collaboration rather than attempting to start a new registry on their own.

There are many different approaches that states can and have taken to address climate change issues. Please see SERC’s State Activity page on this topic for more information on state programs and introduced legislation.

The Greenhouse Gas Database Act

An Act to establish the <insert state here> Greenhouse Gas Database, a greenhouse gas (GHG) reporting database that will allow entities to establish baselines, help the state monitor emissions from stationary sources, and for other purposes.

The people of the state of <insert state here>, represented by the state Legislature, do enact as follows:

Section 1. Short Title.

This Act shall be known and may be cited as the “Greenhouse Gas Database Act.”

Section 2. Purpose.

The purposes of the <insert state here> Greenhouse Gas Database are all of the following:

(A) To create a record of GHG emissions from major emitting facilities in the state;

(B) To help entities in the state establish emissions baselines against which any future state or federal GHG emissions reduction requirements may be applied; and

(C) To encourage voluntary actions to increase energy efficiency and reduce GHG emissions.

Section 3. Legislative Findings.

The Legislature makes the following findings:

(A) It is in the best interests of the state, the United States of America, and Earth, as a whole, to encourage actions to reduce GHG emissions from <insert state here> sources; and

(B) The state’s tradition of environmental leadership should be recognized through the establishment of a database to record greenhouse gas emissions from certain facilities.

Section 4. Definitions.

The following definitions apply in this Act:

(A) “Carbon dioxide equivalents” means the amount of each GHG that makes the same contribution to global warming as one metric ton of carbon dioxide, as determined by the Department.

(B) “Commissioner” means the Commissioner of <insert relevant state department here; e.g., Department of Environmental Quality>.

(C) “Department” means the <insert relevant state department here; e.g., Department of Environmental Quality>.

(D) “Direct greenhouse gas emissions” means GHG emissions released from a mandatory reporting facility or a facility that is owned, controlled, or operated by an entity submitting information under this Act.

(E) “Entity” means a public or private organization that operates facilities within the state.

(F) “Facility” means all buildings, structures, or installations located on any one or more contiguous or adjacent properties of an entity in the state.

(G) “Greenhouse gas (GHG)” means the gaseous form of carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and / or sulfur hexafluoride.

(H) “Greenhouse gas emissions” means emissions of a GHG, including all of the following:

(1) Stationary combustion source emissions, which are emitted as a result of combustion of fuels in stationary equipment such as boilers, furnaces, burners, turbines, heaters, incinerators, engines, flares, and other similar sources;

(2) Process emissions, which consist of emissions from chemical or physical processes other than combustion; and

(3) Fugitive emissions, which consist of intentional and unintentional emissions from both:

(a) Equipment leaks such as joints, seals, packing, and gaskets; and

(b) Piles, pits, cooling towers, and other similar sources.

(I) “Mandatory reporting facility” means a facility that meets the criteria in Section 5(A).

(J) “Record” means the record of greenhouse gas emissions reported by mandatory reporting facilities established as a component of the database under Section 5.

Section 5. Greenhouse Gas Reporting.

(A) A facility shall be a mandatory reporting facility if, during the preceding calendar year, it:

(1) Is required to report information on any of its air emissions to the Department or to the U.S. Environmental Protection Agency; or

(2) Has greenhouse gas emissions of more than 10,000 metric tons of greenhouse gases, measured in carbon dioxide equivalents.

(B) Not later than July 1st of each calendar year, beginning more than 2 years after the date of enactment of this Act, each mandatory reporting facility shall submit to the Department a report that states, for the preceding calendar year, the greenhouse gas emissions of the facility, expressed in units of carbon dioxide equivalents.

(C) Upon establishment of the database, any entity may submit to the Department a report that states the total emissions of the entity for subsequent years after 1990 for which there is verifiable information.

Section 6. Establishment of Greenhouse Gas Database.

(A) The Department, in consultation with the private sector and nongovernmental organizations, shall establish, operate, and maintain a database, to be known as the <insert state here> Greenhouse Gas Database, to collect, verify, record, and analyze information on GHG emissions and baselines by the mandatory reporting facilities set forth in Section 5(A).

(B) The <insert state here> Greenhouse Gas Database shall consist of a record of greenhouse gas emissions reported by mandatory reporting facilities.

(C) Prior to including any information reported to the Department in the database, the Department shall verify the completeness, consistency, and accuracy of the information in conformance with the rules, methods, and procedures established under Section 7.

(D) The Department shall publish the Greenhouse Gas Database and make it accessible to the public, including in electronic format on the Internet, except in the case of any item of information for which the Department determines that publishing or otherwise making available the item of information:

(1) Poses a risk to national security; or

(2) Discloses confidential business information that cannot be derived from information that is otherwise publicly available and would cause competitive harm, if published.

Section 7. Rulemaking.

The Department shall propose rules within 6 months after this Act becomes effective, and promulgate rules within 18 months after this Act becomes effective, to establish methods and procedures for:

(A) Reporting information to the database and for enabling the Department to verify such information;

(B) Calculating, estimating, or otherwise quantifying:

(1) Direct greenhouse gas emissions; and

(2) Any other greenhouse gas emissions which the Commissioner determines that entities may report to the database;

(C) Verifying information reported to the database;

(D) Determining that a given source or facility is a mandatory reporting facility for purposes of reporting under Section 4(I) and Section 5(A);

(E) Publicly disclosing collected information as described under Section 6(D);

(F) Minimizing the cost, inconvenience, and general burden of reporting on the Mandatory Reporting Facilities; and

(G) General supervision and administration of this Act.

Section 8. Compliance.

(A) Any violation of any provision of this Act, or of any rule adopted under this Act, shall be subject to enforcement by injunction, including mandatory injunction, issued by the <insert state’s superior court> upon application of the <insert state here> Attorney General. Any such violation shall also be subject to a civil forfeiture to the state of not more than $25,000 for each violation, and for each day of a continuing violation.

(B) Any entity who violates any of the provisions of this Act, or any rule adopted under this Act, shall be guilty of a misdemeanor if a natural person, or guilty of a felony if any other entity.

(C) The Commissioner, after notice and hearing, may impose an administrative fine not to exceed $2,000 for each offense upon any entity who violates any provision of this Act or any rule adopted pursuant to this Act. Any administrative fine imposed under this section shall not preclude the imposition of further penalties under this Act.

(1) Notice and hearing prior to the imposition of an administrative fine shall be in accordance with procedural rules adopted by the Commissioner.

(2) The Commissioner may assess an additional fine for repeat violations.

Section 9. Effective Date.

This Act shall take effect immediately upon its passage.

Section 10. Severability.

If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity shall not affect other provisions or applications of this Act, which can be given effect without regard to the invalid provision or application and, to this end, the provisions of this Act are severable.