GHG Compliance in New York: Understanding the CLCPA and Future Reporting Mandates

New York State has long positioned itself as a national leader in the fight against climate change, with some of the most ambitious greenhouse gas (GHG) reduction goals in the United States. Under the Climate Leadership and Community Protection Act (CLCPA) implemented in 2020, New York set GHG reduction targets while transitioning towards a carbon-neutral economy. The challenge of meeting the GHG reduction targets has been supported by new, emerging regulations to strengthen emissions monitoring and corporate accountability, including the soon-to-be-finalized 6 NYCRR Part 253 and the proposed Senate Bill S3456.

What is the Current Climate Regulatory Landscape in New York?

In 2019, the Climate Leadership and Community Protection Act (CLCPA) was officially signed into law in New York State. The CLCPA establishes some of the most aggressive and legally binding climate and clean energy targets in the United States. The CLCPA mandates a state-wide reduction in GHG emissions by 40% by 2030 and 85% reduction by 2050, both relative to 1990 levels. Furthermore, it commits to 100% zero emissions electricity production by 2040, economy-wide net-zero emissions by 2050, and even includes stipulations to direct 35% of the benefits from the state climate and energy programs to disadvantaged communities. These state-wide GHG reduction targets are codified in 6 NYCRR Part 496.

A key aspect of the CLCPA’s implementation is its direct influence on the permitting process for facilities across the state. The New York State Department of Environmental Conservation (NYSDEC) issued DAR-21: The Climate Leadership and Community Protection Act and Air Permit Applications, a policy document requiring applicants for new Air State Facility (ASF) and Title V permits, as well as permit renewals and modifications, to develop and submit a CLCPA analysis as part of their permit applications. The analysis requires applicants to quantify direct GHG emissions from new or modified sources, as well as upstream and downstream emissions attributable to proposed projects.

What are the Upcoming Climate Regulations? 6 NYCRR Part 253

As part of New York’s continued efforts to gather air pollution data and implement the CLCPA, NYSDEC (Department) is establishing a mandatory GHG reporting program (Reporting Program), which would require certain GHG emitters to report their emissions to the Department. The Reporting Program would be codified in 6 NYCRR Part 253. Under this regulation, facilities in specific industry sectors that have exceeded an emissions threshold of 10,000 metric tons of carbon dioxide equivalent (MT CO₂e) in any year since 2023 will be required to track GHG emissions and disclose emissions records to the Department as of January 1, 2026. Additionally, facilities exceeding an annual emissions threshold of 25,000 MT CO₂e will be designated as “Large Emission Sources” subject to more stringent reporting and verification requirements than sources emitting 10,000 MT CO₂e.

The public comment period for 6 NYCRR Part 253 is currently underway, with adoption expected later this year. The finalization of this regulation will enable New York to attain a more comprehensive, facility-specific GHG emissions database, which will be critical to tracking the state’s progress towards meeting its CLCPA targets.

Corporate-Level Accountability: Senate Bill S3456

In support of the goals of the CLCPA, New York has also proposed the Climate Corporate Data Accountability Act (CCDAA), formally introduced in the state Senate as Senate bill S3456. Whereas 6 NYCRR Part 253 addresses reporting at the facility-level, the CCDAA has a broader, corporate-level focus – the proposed bill mandates that large businesses with over $1 billion in revenue operating in New York disclose their full annual GHG inventories, which includes the following:

• Scope 1 emissions – This encompasses emissions generated from sources directly owned or controlled by a business.
• Scope 2 emissions – These are emissions produced indirectly by a business entity, specifically from the generation of purchased energy.
• Scope 3 emissions – Scope 3 emissions refer to other indirect sources of emissions produced from a business’s value chain, which encompass upstream and downstream activities such as suppliers and customers.

If this Senate bill is passed, then the applicable businesses would need to report Scope 1 and 2 emissions by 2027 using 2026 data and report Scope 3 emissions by 2028 using 2027 data. Key features of the proposed legislation also include the creation of a public emissions reporting platform and the imposition of large penalties of up to $100,000 per day, with a maximum of $500,000 per reporting year for companies that willfully fail to comply. At present, the CCDAA is still under consideration in the state Senate. If passed, this bill would be a large step in corporate accountability towards emissions generation and would incentivize mitigation strategies and expansion of carbon neutral technologies.

How to Prepare

With more rigorous reporting requirements looming, facilities should begin to review their climate strategies and current reporting policies. For facilities applicable to either CCDAA or 6 NYCRR Part 253, it is best to begin implementing or assuring that systems are in place to reliably monitor and track GHG emissions with high accuracy. For large corporations with over $1 billion in revenue, they should begin assessing their capabilities in tracking Scope 1, 2, and 3 emissions, in preparation for the potential enactment of the CCDAA. This may include identification of data gaps and engagement with suppliers and others within their value chain.

How ALL4 Can Help

ALL4 can provide GHG reporting, tracking, and mitigation services to organizations that may be subject to these regulations. ALL4 can assist in developing a GHG monitoring plan, developing GHG emissions inventories including Scopes 1, 2, and 3, as well as developing strategies to reduce emissions and carbon footprint. For inquiries about how the proposed New York legislation may impact your facility or organization, contact Josh Jose at jjose@all4inc.com or your ALL4 project manager.