At the time of its passage in 2019, the Climate Leadership and Community Protection Act (CLCPA) was the most aggressive piece of climate change legislation in the nation. It set forth numerous statutory renewable energy and economy-wide emissions reductions targets and established a Climate Action Council which was tasked with developing a Scoping Plan to serve as a roadmap to achieve the Act’s goals. The final Scoping Plan was released in December 2022 and shortly thereafter in January 2023, Governor Kathy Hochul announced that the state would pursue a New York Cap-and-Invest (NYCI) program.
Cap-and-Invest or Cap-and-Trade, is a market-based mechanism where the state sets a declining limit or “cap” on total economy-wide greenhouse gas emissions from major sources like power plants, fuel suppliers, and large facilities. Companies must hold allowances for every ton of emissions they produce, and in theory as the cap shrinks over time, overall pollution steadily decreases. The government would collect revenue through an emission allowance auction then invest the revenue from selling those allowances into clean energy, consumer affordability programs, and energy efficiency, helping to further reduce emissions.
The Governor’s pursuit of NYCI at the time, was not only due to Cap-and-Invest being a recommendation in the final Scoping Plan, but primarily due to a key statutory provision outlined in the CLCPA itself. The Act states that by January 1, 2024, the Department of Environmental Conservation (DEC) must promulgate rules and regulations to ensure compliance with the statewide emissions reductions’ limits. NYCI was chosen as the preferred option to meet this statutory requirement.
Following the Governor’s 2023 announcement, DEC and the New York State Energy Research and Development Authority (NYSERDA) underwent a year of stakeholder outreach, issuing a pre-proposal for NYCI in December 2023. Throughout 2024, the agencies continued to solicit feedback on the pre-proposal with the hopes of releasing draft NYCI regulations which would be established through a set of three rulemakings processes to run concurrently. First, a Mandatory Reporting Rule which would provide the state with an accurate level of GHG emissions data. Second, a Cap-and-Invest Rule which would establish an emissions cap and feature most of the program’s mechanisms and guardrails. Lastly, an Auction Rule, which would lay out how companies would secure allowances.
Moving into January 2025, Governor Hochul announced that the state would, for the time being, only pursue the Mandatory Reporting Rule. As justification, the state claimed that the Reporting Rule is needed first as it would provide a more accurate framework to develop the full program. This led to a lawsuit filed by several environmental groups in March 2025, claiming that the state had missed its statutory deadline of January 1, 2024, to produce the CLCPA’s required economy-wide emissions reduction targets.
In October 2025, an Ulster County Supreme Court Judge ruled in favor of environmental groups and stated that the statutory requirement in the CLCPA is clear and that DEC must promulgate the economy-wide emissions limits regulations. The court directed the state to do so by February 6, 2026, stating that any other directive would have come through a change of law at the hand of the Legislature. In late November 2025, the state appealed to the court’s ruling, and the process is expected to be pending through much of 2026.
This brings us to where things currently sit. On December 1, 2025, DEC published a finalized Mandatory Reporting Rule. While less expensive than the full NYCI program, the rule itself impacts a wide variety of New York based entities. From owners of large facilities to fuel suppliers and dairy farms, covered entities must now report greenhouse gas emissions associated with their business activities on an annual basis. Impacted entities will have to spend much of 2026 reviewing the finalized rule, gaining a more complete understanding of its business specific impact and developing a monitoring and measurement plan which will be due in September 2026.
In order to best inform you on the program’s impacts, please see a comprehensive summary below.
Department of Environmental Conservation Mandatory Greenhouse Gas Emissions Reporting Regulations (6 NYCRR Part 253):
Part 253 applies to entities emitting greenhouse gases or supplying fuels that cause greenhouse emissions in New York. Impacted parties include direct emission facilities, fuel suppliers, electric power entities, waste transporters, and certain agricultural operations with anaerobic digesters or large liquid waste systems. Parties are required to develop and submit emissions monitoring and measurement plans, report emissions on an annual basis, and for certain large emission sources obtain third party verification from a DEC certified entity.
The program is for data collection only and does not require reductions, allowances, or compliance with Cap-and-Invest obligations. Entities report annually through a new electronic tool, the New York State Greenhouse Gas Reporting Tool (NYS GGRT), which DEC is developing to streamline administrative burdens.
A business or operation becomes a Reporting Entity if it meets specific thresholds or emission-source criteria. These thresholds vary by sector, as outlined below.
Facility Operators
Facilities must report if they emit 10,000 metric tons (MT) CO2e or more per year. Covered facility categories include electricity generation units, stationary combustion, landfills, waste-to-energy plants, natural gas compressor stations, and similar infrastructure.
Fuel Suppliers
Suppliers of natural gas, petroleum products, liquid fuels, liquefied natural gas (LNG), compressed natural gas (CNG), or coal must report any quantity delivered to end users that generates GHG emissions. Upstream out-of-state emissions must also be estimated and reported.
Waste Transporters
Waste haulers exporting solid waste out of New York State must report if transported waste generates more than 10,000 MT CO2e from methane or combustion emissions at out-of-state facilities.
Electric Power Entities
Any entity that emits GHGs or imports electricity into New York must report:
• Emissions attributable to delivered electricity;
• Imported and exported MWh details; and
• NERC e-tags and first/last points of receipt.
Agricultural Lime and Fertilizer Distributors
Distributors must report any quantity sold that results in:
• Nitrous oxide (N2O) emissions from fertilizer application; and
• Carbon dioxide (CO2) emissions from agricultural lime use.
Anaerobic Digesters and Liquid Waste Storage
Facilities such as wastewater treatment plants or Concentrated Animal Feeding Operations (CAFOs) must report if waste processed generates 10,000 MT CO2e or more per year. Small facilities may qualify for abbreviated reporting.
Determining Responsibility in Shared or Contracted Facilities
Reporting responsibility is determined by operational control, not ownership. In cases where farms contract for digester operations, reporting responsibility depends on who has authority over operational decisions and holds the relevant permits or contractual control.
Reporting Entities must annually submit GHG emissions and related operational, product, or activity data.
Core Emission Data
All reporters must calculate and submit CO2e using 20-year global warming potential (GWP20) values. Reported emissions typically include:
• Stationary combustion emissions;
• Process, vented, or fugitive emissions;
• Biogenic emissions; and
• Upstream fossil fuel emissions associated with fuels delivered or used.
Industrial Product Data
Facilities with certain NAICS codes must also report industrial product data, which is a subset of broader product data and may include production volumes, fuel or input quantities, or other operational metrics used to calculate emissions.
Activity Data Examples
Depending on entity type, activity data may include:
• Fuel volumes delivered or combusted;
• Mass of nitrogen in waste;
• Quantities of biogas combusted or captured;
• Waste tonnage transported; and
• Electricity flows (imports/exports).
Reporting Platform
All emissions must be reported through the electronic system NYS GGRT, which DEC is building. This centralized system replaces prior fragmented reporting processes and is intended to make reporting more efficient and consistent.
Start Date and Deadlines
• First reporting year: Calendar year 2026.
• First emissions report due: June 1, 2027.
• Annual deadline in subsequent years: June 1 of each year for the previous calendar year.
Continued Reporting Requirements
If a Reporting Entity’s emissions fall below the applicable reporting threshold, it must continue reporting for three consecutive years below the threshold before it may stop. Facilities that permanently close must report for one additional year after ceasing operation.
Use of DEC’s Estimator Tool
DEC provides an estimator to approximate emissions based on fuel utilization. This tool cannot determine legal reporting obligations but helps entities assess potential status and approximate emissions using standard emission factors.
A Reporting Entity becomes a Large Emission Source if it exceeds specific thresholds, including, but not limited to:
• Facilities: 25,000 MT CO2e or more per emission year;
• Natural gas suppliers: 15 million cubic feet or more per year;
• Liquid fuel suppliers: 100,000 gallons or more per year;
• CNG/LNG suppliers: 15 million cubic feet or more per year;
• Coal suppliers: 500 short tons or more per year; and
• Waste exporters: 25,000 MT CO2e or more (sum of emissions from out-of-state landfills and combustion facilities).
Mandatory Third-Party Verification
Large Emission Sources must obtain annual verification from DEC-accredited third-party verifiers. Verification deadlines are:
• December 1, 2027 for 2026 data;
• December 1, 2028 for 2027 data; and
• August 10 for each subsequent emissions year.
Verification Scope
Third-Party Verifiers evaluate:
• Emission calculation methods;
• Data completeness and internal consistency; and
• Industrial product data, where applicable.
Exemptions from Verification
Facilities regulated under Part 242 (RGGI CO2 budget sources) are exempt from verification but are still required to report under Part 253.
Certain entities must submit and maintain a facility-specific Emissions Monitoring and Measurement Plan (EMMP) under Part 253-2.20.
Required EMMP Submitters
An EMMP is required for:
• Operators of anaerobic digesters or liquid waste storage that are required to report under 253-2.2(a)(1) and are not eligible for abbreviated reporting; and
• Operators of solid waste landfills where reported emissions exceed 300,000 MT CO2e annually.
*Regular stationary facilities (e.g., boilers, industrial combustion, manufacturing sites) do not have to create an EMMP.
Purpose of the EMMP
The EMMP serves as a quality-assurance framework describing how emissions and key parameters will be monitored, measured, and documented over time. It is intended to ensure that data reported to DEC are consistent, transparent, and reproducible.
Typical EMMP Contents
A compliant EMMP generally describes:
• Monitoring methods and instrumentation used to measure flows, concentrations, volumes, or other parameters;
• Frequency of measurements and sampling procedures;
• Data handling, recordkeeping, and quality assurance and quality control practices;
• Operational controls and staff responsibilities, including who is responsible for collecting data, performing calculations, and reviewing reports; and
• Procedures for updating the plan when there are process changes, new equipment, or changes in ownership or operational control.
Enforcement Approach
DEC emphasizes education, outreach, and phased implementation as the first step. The initial focus is on helping Reporting Entities understand their obligations and successfully comply with the rule.
Penalties for Non-Compliance
If an entity fails to submit required emissions data reports or verification statements:
• DEC may develop and assign emissions for the Reporting Entity; and
• Each metric ton of CO2e not reported as required is considered a separate violation.
Additionally, each day that a report is late, incomplete, or inaccurate is considered a separate violation.
Costs for Entities
DEC identified three primary cost categories associated with the reporting rule:
• Reporting costs, including preparation of the annual emissions data report;
• Costs for third-party verification of submitted GHG emissions data for Large Emission Sources; and
• Costs to the State to administer the program.
Administrative costs for verification for Large Emission Sources is expected to range roughly from $4,000 for simple facilities to $17,000 for more complex operations.
Assistance Programs
Entities, especially small businesses, may access support through:
• DEC small business compliance and technical assistance programs;
• Empire State Development’s Small Business Environmental Ombudsman (SBEO); and
• DEC’s Mandatory Reporting Section.
These services are designed to be free and confidential, helping smaller entities understand and meet their reporting obligations.
To reduce unnecessary reporting burden, DEC allows Reporting Entities to rely on information that they already submit under several existing state and federal regulatory programs. These programs collect emissions, operational, or activity data that align with the greenhouse gas reporting requirements under Part 253, allowing entities to avoid duplicating work when the same information is already being reported elsewhere.
Title V Annual Emissions Reporting (New York State Air Permitting Program, Subpart 202-2)
Facilities that submit annual greenhouse gas and air pollutant emissions under their Title V air permit may use those emissions data when meeting the reporting requirements of Part 253.
Regional Greenhouse Gas Initiative Carbon Dioxide Budget Trading Program (New York State regulation Part 242)
Electric generating units regulated under the Regional Greenhouse Gas Initiative report carbon dioxide emissions using certified continuous emissions monitoring systems in accordance with the federal monitoring requirements in 40 Code of Federal Regulations Part 75. These carbon dioxide emissions data may be used for Part 253, and facilities subject to the Regional Greenhouse Gas Initiative are exempt from the third-party verification requirement.
United States Environmental Protection Agency Greenhouse Gas Reporting Program (40 Code of Federal Regulations Part 98)
A wide range of sectors—including solid waste landfills, industrial manufacturers, petroleum and natural gas systems, wastewater treatment facilities, and manure management operations—already report detailed greenhouse gas emissions information to the United States Environmental Protection Agency. The Department will accept these data when they correspond to reporting obligations under Part 253.
New York State Regulation for Oil and Natural Gas Sector Methane Controls (Part 203)
Oil and natural gas infrastructure subject to this state regulation already collects and reports operational and emissions information related to methane control. These data may be used to fulfill reporting requirements under Part 253.
Solid Waste Facility Permit Reporting for Landfills and Waste-to-Energy Facilities
Solid waste landfills and waste-to-energy combustion facilities already collect information such as methane generation estimates, waste input quantities, landfill gas monitoring, and combustion efficiency information as part of their operating permits. These data are applicable to corresponding emissions calculations required under Part 253.
State Pollutant Discharge Elimination System Wastewater Treatment Facility Information
Municipal and industrial wastewater treatment facilities collect information such as influent and effluent characteristics, digester operations data, treatment process configurations, and other operational details under their wastewater discharge permits. These existing data sets support methane and nitrous oxide emissions calculations required by Part 253.
Concentrated Animal Feeding Operation Manure Management and Organic Waste Data
Large agricultural operations permitted as Concentrated Animal Feeding Operations collect information on manure generation, storage system characteristics, digester operations, and waste handling activities. Part 253 allows these facilities to use this existing information, and in some cases to file abbreviated greenhouse gas reports, thereby limiting redundant reporting requirements.
Definitions
Biofuels/biomass-derived fuels include biodiesel, ethanol, biogas-derived fuels, and other fuels from non-fossilized organic sources. Fossil fuels are treated separately with additional upstream reporting obligations.
Reporting Treatment
Biofuels must be separately identified and reported, including their CO2 emissions, which are categorized as biomass-derived CO2. Fossil fuels require full upstream out-of-state emissions reporting.
Verification Requirements
Biofuels receive modified verification provisions but are still subject to annual verification. Fossil fuels undergo standard verification. Lifecycle assessments apply only to fossil fuels.
CO2 Emissions Treatment
Biofuel CO2 is reported separately as biogenic CO2. Fossil CO2 contributes directly to total CO2e and includes upstream emissions.
Special Biofuel Reporting Requirements
Wood residuals and waste-derived biomass require additional data. Biogas upgraded to RNG is not reported as a fuel delivery unless delivered to an end user.
Blended Fuel Requirements
Suppliers must disclose the percentage of biofuel blended into petroleum products.
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