• Mandatory annual reporting: Entities emitting ≥10,000 metric tons of CO2e must begin reporting 2026 data in June 2027.
• No emissions cuts—yet: The rule is for data collection only; it does not mandate reductions or purchase of allowances.
• Foundation for cap-and-invest: Reporting supports a future $1B/year emissions trading system aligned with New York’s Climate Act.

New York’s Department of Environmental Conservation (DEC) released draft regulations mandating annual greenhouse gas (GHG) emissions reporting for high-emitting sectors starting in 2027. Covered entities will report emissions from the 2026 calendar year.

Electricity generators, landfills, stationary combustion facilities, natural gas compressor stations, anaerobic digestion facilities, and other infrastructure emitting ≥10,000 metric tons of CO2e annually must comply. The rule also covers fuel suppliers, waste haulers, and agricultural lime/fertilizer distributors.

“This data is critical to inform the State’s sustained efforts to protect our environment and improve the health and quality of life of all New Yorkers,” said DEC Acting Commissioner Amanda Lefton.

The data will inform New York’s planned cap-and-invest program, requiring large emitters and fuel distributors to purchase allowances under a declining cap, expected to generate over $1B annually.

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First announced by Governor Hochul in 2023, the program is part of New York’s broader climate strategy under its Climate Act. Funds raised will support emissions reductions and help vulnerable communities manage energy costs.

“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,” Lefton said.

Starting in June 2027:

• Covered entities must submit verified emissions data annually.
• Third-party verification will be required for some facilities.
• DEC will offer an online platform, training, and a simplified estimator tool to support compliance.
• Data already reported to state/federal programs can be reused to ease the burden.

“The proposed Reporting Rule is solely for reporting purposes and would not require pollution reductions or the purchase of allowances,” the DEC clarified.

What’s Next:

• Public comments: Accepted until July 1, 2025.
• Information sessions: Two webinars + five public hearings (3 in-person, 2 virtual) are being scheduled.
• Final rule: Expected by year-end following stakeholder input.

This regulation arrives amid federal rollbacks under consideration by the EPA. New York’s move ensures continuity in emissions tracking regardless of federal policy.

“DEC is prepared to fill the data gaps left behind by proposed federal rollbacks,” said Lefton.

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