While the Environmental Protection Agency (“EPA”) is proposing to amend the federal Greenhouse Gas Reporting Program (“GHGRP”) to remove reporting requirements for nearly all sources, it remains important for companies to track developments and manage their compliance obligations with existing and emerging state GHG reporting programs. Several states, such as California, already have some form of mandatory GHG reporting in place. Others are introducing similar programs to take effect over the next several years.
In particular, New York is expected to finalize a rule establishing a Mandatory Greenhouse Gas Reporting Program. The state announced its proposal in spring 2025 and public comments closed on July 1. New York’s program appears to be similar to both the federal GHGRP (which EPA will likely roll back) and California’s Mandatory Reporting Regulation (“MRR”) and applies to companies with significant direct emissions from facilities located in New York state and fuels and electricity consumed within the state. This blog post provides an overview of New York’s proposed program and compares it with California’s MRR.
While the specific thresholds and verification requirements vary between California’s MRR and New York’s proposed program, the two programs are similar in scope. Whether an entity is subject to the requirements depends on the type of entity and the amount of GHG the entity emits. Further, each of these programs is distinct from California’s climate disclosure laws, SB 253 and SB 261, which apply broadly to companies that do business in California and exceed certain annual revenue thresholds. (See our most recent blog post on the climate disclosure laws here.)
New York’s Proposed GHG Reporting Program: Overview and Comparison with California’s Longstanding MRR
New York’s proposed regulation would require entities responsible for emissions in New York to monitor their annual GHG emissions and report those emissions to the New York State Department of Environmental Conservation (“NYSDEC”). If the regulation is finalized as expected, the first reports will be due June 1, 2027 for emissions data collected in 2026. The proposed program is for data collection only; it does not impose any requirements to reduce GHG emissions or obtain emissions allowances. However, according to an FAQ document issued by NYSDEC, the reporting regulation is part of a broader plan to implement a cap-and-invest program, which the state plans to develop in the future.
New York’s program is very similar to California’s MRR. Created in 2007, the MRR also requires facilities located in California, as well as suppliers of transportation fuels and electricity consumed within California, to monitor and report their annual GHG emissions. California adopted the MRR prior to establishing its Cap-and-Trade Program, and the data from the MRR is used to implement the Cap-and-Trade Program.
Covered Entities
While the California MRR and New York’s program are similar in scope, there are some slight differences in the specific criteria for who must report. In general, both programs require some entities to report regardless of their emissions levels and require other entities to report if they emit 10,000 metric tons or more of CO2e per year. Below is a table summarizing the requirements for certain types of entities.
| Type of Entity | California MRR Reporting Threshold[1] | New York Proposed Reporting Threshold |
| Owners and operators of facilities within the state | Emit any CO2e through an installation engaged in: Electricity generation from units that report via 40 C.F.R. Part 75; cement production; lime manufacturing; nitric acid production; petroleum refining; geologic sequestration of carbon dioxide; and injection of carbon dioxide. Emit ≥10,000 MT CO2e per year through an installation engaged in: Stationary fuel combustion; glass production; hydrogen production; iron and steel production; pulp and paper manufacturing; petroleum and natural gas systems; geothermal electricity generation; and lead production | Emit ≥10,000 MT CO2e per year |
| Fuel suppliers that supply fuel to an end user in state | Supply a quantity of fuel that would release ≥10,000 MT CO2e per year. | Supply any quantity of fuel. |
| Electric power entities | Import or export any electricity into or out of California. | Emit any GHG or import any megawatt hours (MWh) into New York State. |
Verification Requirements
In general, both California’s MRR and New York’s program require verification of data only for entities that emit 25,000 MT CO2e or more per year.
California allows certain entities to submit an abbreviated report if they emit less than 25,000 MT CO2e per year, do not have a compliance obligation under the Cap-and-Trade Program, and are not subject to the federal GHGRP requirements for certain sectors. See Cal. Code Pub. Health § 95103(a).
Under New York’s proposed regulation, entities must verify their emissions data if they qualify as a “large emissions source.” This generally includes facilities with emissions located in New York that emit 25,000 MT or more of CO2e per year. The proposed regulation specifies that the following also qualify as a large emissions source and are subject to the verification requirement:
- Suppliers of natural gas, liquefied natural gas, and compressed natural gas that supply more than 15 million cubic feet per year;
- Liquid fuel and petroleum product suppliers that supply more than 100,000 gallons of affected liquid fuels per year;
- Coal suppliers that supply more than 500 U.S. tons of coal per year;
- Waste haulers and transporters that emit more than 25,000 MT CO2e per year, including the sum of emissions reported for out-of-state landfill facilities and out-of-state combustion facilities for all waste exported out of New York State.
Contrasting New York’s Proposed Program with California’s Climate Disclosure Laws
The scope and coverage of both California’s MRR and New York’s proposed program are distinct from California’s climate disclosure laws, SB 253 and SB 261, which passed in 2023 and have reporting requirements set to begin in 2026. Those laws require many corporate entities, regardless of the sector in which they operate and the location in which their emissions occur, to disclose their GHG emissions and climate-related financial risk. SB 253 applies to U.S.-based entities doing business in California with more than $1 billion in annual revenue and requires those companies to report Scope 1 and 2 emissions in 2026 and Scope 3 emissions in 2027. SB 261 applies to U.S.-based entities doing business in California with more than $500 million in annual revenue and requires those companies to report their climate-related financial risks, with the first reports due on January 1, 2026. For more details about implementation of the laws, please read our previous post covering key takeaways from California Air Resources Board’s public workshop on implementation. We also published posts spotlighting SB 253 and SB 261 when the California legislature originally passed them, as well as an alert detailing the 2024 amendments to the laws.
Similar bills have been introduced in Colorado, Illinois, New Jersey, New York, and Washington state; thus far, none have passed.
Conclusion
While New York’s proposed Mandatory Reporting Program mirrors California’s longstanding MRR, there are some differences in the two programs’ requirements. And because the proposed program uses a reporting threshold framework that is distinct from climate disclosure laws like California’s SB 253 and SB 261, companies will need to carefully assess its applicability and requirements, as well as its potential interaction with other laws. Covington will continue to closely monitor the status of New York’s forthcoming final regulation and will be ready to assist clients in assessing applicability and preparing for compliance.
Covington’s Carbon Management and Climate Mitigation practice has extensive experience and capabilities advising on climate mitigation strategies, regulatory frameworks, and agency engagement. Our global team is ready to assist clients as they engage with regulatory agencies and prepare to comply with climate reporting rules in California, New York, the EU, and other jurisdictions.
[1] See Cal. Code Pub. Health § 95101 for details on reporting thresholds for specific types of entities.