Emerging State Greenhouse Gas Regulations

Introduction

On March 12, 2025 newly appointed United States Environmental Protection Agency (U.S. EPA) Administrator Lee Zeldin announced potential federal rollbacks of greenhouse gas (GHG) reporting requirements. Zeldin’s announcement came with a flurry of other regulatory promises and was self-described by Zeldin as “the largest deregulatory announcement in U.S. history”. Zeldin’s announcement suggests that the potential removal or relaxation of the federal requirements for the Greenhouse Gas Reporting Program (GHGRP) codified as 40 CFR Part 98 are likely. Currently all facilities that emit over 25,000 metric tons of carbon dioxide equivalent (CO₂e) are required to report GHG emissions from specific equipment by March 31^st of each year. Despite the deemphasis on GHG reporting at the federal level, several states are continuing the process of developing their own GHG reporting requirements, including California, New York, Illinois, Oregon, and Washington.

What Are the States Doing?

The aforementioned states have proposed the following GHG reporting requirements:

New York – SB-S3456: Climate Corporate Data Accountability Act

On January 27, 2025 New York introduced SB 3456 which would require companies within the state with over $1 billion in annual revenue to report Scope 1 and 2 emissions starting in 2027 and Scope 3 starting in 2028. Scope 1 emissions are direct emissions from the facility while Scope 2 emissions are indirect emissions from purchased electricity or steam. Scope 3 emissions are all other indirect emissions that occur upstream and downstream of the facility, such as employee commuting, purchased goods and services, business travel, processing, and use of sold products. Currently the bill is referred to theenate Environmental Conservation Committee for review.

Illinois – HB-3673: Climate Corporate Data Accountability Act

Illinois General Assembly Bill HB-3673 was filed on February 7, 2025. This bill would require reporting entities with over $1 billion in annual revenue to report Scope 1 and 2 emissions by January 1^st of each year, and Scope 3 emissions 180 days later. Scope 1 and 2 emissions would be required to report starting on January 1, 2027, and therefore Scope 3 emissions would be reported June 30, 2027. This bill is currently stalled at the state House of Representatives as of March 21, 2025.

Oregon – DEQ-18-2024: Climate Protection Program 2024

On November 21, 2024, the Oregon Environmental Quality Commission (EQC) adopted rules to establish the Climate Protection Program 2024. The Climate Protection Program sets a declining cap on GHG emissions generated from fossil fuels. This rule’s goal is to reduce overall state GHG emissions by 50% by 2035 and 90% by 2050. Oregon currently requires fuel suppliers and in-state producers to report emissions from combustion of all fuel supplied in accordance with Oregon Administrative Rule 340-215-0110.

Washington State – SB-6092 – 2023-24: Disclosure of Greenhouse Gas Emissions

On January 9, 2024, Washington State announced SB 6092 that would require companies doing business in Washington State with over $1 billion in revenue to report Scope 1 and Scope 2 emissions by October 1, 2026, and Scope 3 emissions by October 1, 2027. As of March 7, 2024, the bill was sent back to the Senate Rules Committee for a third reading. Washington State currently requires facilities emitting more than 10,000 metric tons of CO₂e per year in Washington State to report GHG emissions, which is more stringent than the GHGRP.

California – SB-253: Climate Corporate Data Accountability Act

In October 2023, California signed into law SB-253. This law requires all companies doing business in California with over $1 billion in annual revenue are required to report Scope 1 and Scope 2 emissions starting in 2026 and Scope 3 emissions starting in 2027. For more details, please see Lauren Coca’s 4 the Record Article posted on January 6, 2025.

What Can You Do?

If your facility operates in one of these states, staying on top of GHG requirements is crucial to stay in compliance. ALL4 will continue to publish blogs regarding GHG reporting requirements and mandates. If you have any questions or need help with your facility’s GHG reporting compliance do not hesitate to reach out to an ALL4 specialist. You can contact Evan Mia or Louise Shaffer on this topic.