The New York State Department of Environmental Conservation (DEC) recently finalized regulations establishing a mandatory greenhouse gas reporting program under New York Codes, Rules and Regulations Part 253. With the adoption of the regulation, New York becomes the third state to require emissions reporting, and the new rule shares a number of similarities with California’s emissions reporting rules.
New York businesses should employ a number of best practices to ensure compliance.
This rule implements a key provision of the Climate Leadership and Community Protection Act (CLCPA), which mandates aggressive statewide GHG reductions: 40% by 2030 and 85% by 2050 from 1990 levels. The rule aims to build a comprehensive emissions database to help meet the state’s CLCPA goals.
While the regulatory program was a requirement of the CLCPA, directing DEC to compile accurate emissions data for large-quantity GHG generators, DEC also took action to meet the northeast Regional Greenhouse Gas Initiative’s (RGGI) requirement that member states track and report CO2 emissions from large (25+ megawatt) fossil fuel-fired power plants.
Furthermore, it appears Gov. Kathy Hochul’s administration took the action in response to the Trump administration’s dismantling of the EPA’s GHG Reporting Program, an action that again places individual states in the role as primary enforcers of climate change regulations.
Still, the state was open to feedback on the emissions reporting rules. DEC released draft regulations in March 2025, drawing over 3,000 public comments, leading to adjustments, such as extended verification deadlines.
Who must report
Entities emitting at least 10,000 metric tons of CO₂ annually, including power plants, industrial facilities, landfills, waste-to-energy facilities, anaerobic digesters, fuel suppliers and waste haulers transporting emissions-generating waste out of state, are subject to the reporting requirements, with the first annual submission due on June 1, 2027 (reporting the prior calendar year’s greenhouse gas emissions). The regulations require reporting of GHG emissions data, including stationary combustion, fugitive emissions and upstream emissions for certain sectors. Third-party verification is required for some facilities, with initial verification deadlines being extended for two years.
Purpose
At this point, the regulations only require data collection; there are no immediate emission reduction obligations or provisions for allowance purchases. However, this reporting will underpin future regulatory programs, including potential carbon-pricing mechanisms, likely setting the stage for a RGGI-like allowance auction framework.
Implications for large emitters
The regulations will introduce a new compliance burden, as entities must establish robust monitoring and record keeping systems to ensure accurate reporting by 2027. Furthermore, while the current rule does not impose reduction mandates, reported data will likely inform future emission caps, trading programs and enforcement actions. Finally, emissions data will be publicly accessible, increasing reputational and environmental, social and governance scrutiny.
Potential enforcement and penalties
Failure to comply with DEC’s reporting requirements can trigger enforcement under Environmental Conservation Law Article 19, which provides for administrative penalties. Minor violations will be addressed under DEC’s DAR-23 Policy, and significant violations will be calculated under Policy DAR-24. Civil penalties ranging from $500 to $18,000 can be imposed for first-time violations, with increased penalties for subsequent violations.
Comparison with neighboring states
Effective next year, Massachusetts will require GHG reporting for large entities and fuel suppliers under its Clean Heat Standard. Connecticut and New Jersey currently require power plants to monitor and report CO₂ emissions, and New Jersey is advancing a program focused on consumption-based inventories.
Best Practices for Compliance
- Early Readiness: Begin preparations for emissions tracking for 2026 now; integrate with existing EPA Part 98 reporting where possible.
- Data Management System: Use DEC’s NYS GHG Reporting Tool (NYS e-GGRT) and prepare for the new emissions reporting platform.
- Third-Party Verification Planning: Identify qualified verifiers and budget for verification costs.
- Cross-Functional Coordination: Engage experienced environmental, legal and finance teams to align compliance with ESG reporting and CLCPA obligations.
- Stay Informed: Monitor conservation department guidance, webinars and FAQs.
The future is now for greenhouse gas emissions reporting. Businesses must move quickly.
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.
