New York State has proposed a new rule requiring large companies and facilities to report their greenhouse gas (GHG) emissions. This rule is not intended to reduce emissions immediately but to improve data collection to understand where emissions are coming from. That data will help the state take stronger action in the future.
This rule is an early step in the state’s climate plan, especially as it prepares to launch a “cap-and-invest” program in 2025. The reporting rule would start with emissions data from 2026, and companies would have to submit reports in 2027. The New York State Department of Environmental Conservation (DEC) leads this effort.
Who Would Need to Report?
The rule would apply to many types of businesses that emit large amounts of greenhouse gases. This includes not only facilities that directly release pollution into the air but also companies that supply fuels or other products that create emissions later.
- Any business that emits 10,000 metric tons or more of carbon dioxide equivalent (CO₂e) per year must report. For comparison, that’s about the same as the emissions from 2,200 gas-powered cars in one year.
Types of companies and facilities that may need to report include:
- Power plants
- Waste incinerators and landfills
- Large industrial factories that burn fossil fuels
- Natural gas compressor stations
- Heating fuel and gasoline suppliers
- Fertilizer and lime distributors
- Anaerobic digesters and other waste treatment systems
According to the DEC, thousands of entities across New York could fall under the rule. These businesses will need to measure their emissions or use standard methods to estimate them. Some may already report this information to federal programs, which they can reuse for state reporting.
Refer to this factsheet to know more about the said mandatory reporting.
Why the Rule Matters
The state needs accurate data to meet its climate goals under the Climate Leadership and Community Protection Act (CLCPA). This law, passed in 2019, sets some of the toughest climate targets in the country. New York aims to:
- Reduce greenhouse gas emissions by 40% below 1990 levels by 2030
- Reach 85% emissions reductions by 2050
- Get 100% clean electricity by 2040
Accurate data is needed by the state to understand emissions sources and their scale. Right now, the DEC says data is incomplete for many parts of the state’s economy. Some sectors—like transportation, heating fuels, and industrial processes—have gaps in reporting. This rule will help fill those gaps.
How the Reporting Will Work
Companies will need to submit their emissions through an online reporting system developed by the DEC. The agency is also creating a reporting tool to help companies figure out if they are required to report and how to do it correctly.
For example, companies may be asked to report:
- Direct emissions from their own facilities
- Indirect emissions from fuels they sell or transport
- Activities that lead to other forms of carbon pollution
Some reports may need to be verified by a third party. This is to make sure the data is correct and can be trusted for future climate programs. The rule also allows companies to submit data they already send to federal or state programs, making the process easier and less costly.
The Cap-and-Invest Connection
This reporting rule is tied to New York’s upcoming cap-and-invest program. That program, expected to begin in 2025, will place a cap on total greenhouse gas emissions across the state. Emitting entities have to buy “allowances” for the emissions they produce. The fewer allowances available, the more companies will pay if they go over their limits.
Money raised from this system will go into a Climate Action Fund to pay for clean energy projects, home energy improvements, and transportation upgrades. It will also help protect low- and moderate-income households from higher energy prices.
The reporting rule is a key part of getting that system ready. If the state doesn’t know how much a company is emitting, it won’t be able to manage the cap properly or ensure the rules are fair.
Responding to Federal Rollbacks
The emissions reporting rule also prepares New York to stay on track, even if federal rules change. The U.S. Environmental Protection Agency (EPA) already has a greenhouse gas reporting program. However, some experts have raised concerns that future federal policy changes could affect the reliability of existing programs.
DEC Acting Commissioner Amanda Lefton said the rule will help New York “fill the data gaps left behind by proposed federal rollbacks” and make sure the state has “accurate and reliable data.” She further noted:
“The proposed Reporting Rule will enable us to collect the information necessary to develop effective strategies that reduce harmful air pollution and direct investments where they are most needed, while also protecting New York’s consumers and economic competitiveness.”
The CarbonCredits.com team reached out to DEC for more context and information and they provided the following insights.
Q: How will the DEC ensure that emissions data from suppliers and distributors—particularly in sectors like transportation fuels and industrial products—is accurate and consistent across all reporting entities?
A: To ensure accuracy, the DEC will require large emitters to undergo third-party verification and, in some cases, install monitoring equipment. Smaller sources may also need to enhance monitoring if necessary. The agency will accept some data already reported under federal and state programs, reducing duplication.
All reporting entities must certify the accuracy of their data and keep supporting records available for DEC audits. Each category—like fuel suppliers—will follow standardized requirements, including disclosing fuel volumes and transaction data to both the DEC and fuel buyers to ensure consistency across the system.
Q: What support will be available for small- to mid-sized businesses that may struggle with compliance?
A: To ease the reporting process, the DEC is offering free, confidential support for small businesses through state assistance programs. A new online reporting platform will launch before the first reporting deadline in June 2027. The DEC also provides tools like the GHG Estimation Tool to help facilities determine if they need to report.
Additional resources and guidance are being developed to reduce the burden on smaller entities, including municipalities. The DEC is also hosting public webinars and maintaining a dedicated webpage to help stakeholders understand and comply with the rule.
Public Input and Next Steps: A Step Toward Climate Action
The proposed rule is now open for public comment. The DEC is collecting comments until July 1, 2025, and is holding public events to explain the rule and get feedback. These include:
- Two public webinars
- Three in-person hearings
- Two virtual hearings
After the comment period, the DEC will review all suggestions and release a final version of the rule. If approved, companies will start collecting data in 2026 and submit their first reports in 2027.
While this rule doesn’t lower emissions on its own, it is an important foundation for climate action. It will help New York:
- Measure progress toward its goals
- Create stronger climate policies
- Promote compliance with climate regulations
- Support clean energy investments
- Protect vulnerable communities
With better data, New York can make smarter decisions about where to spend money, where to reduce pollution, and how to support people affected by climate change.
Governor Kathy Hochul has also proposed a $1 billion “Sustainable Future Fund” that would use money from the cap-and-invest to support job training, home retrofits, public transit, and renewable energy in disadvantaged areas.
In the years ahead, the emissions data gathered under this rule will guide all of these efforts.
New York’s proposed GHG emissions reporting rule is a big step toward building a cleaner, more sustainable future. By requiring large emitters to report their emissions, the state is preparing for bigger programs to reduce pollution and invest in climate solutions. It aims to balance regulatory accountability with support mechanisms for affected businesses.