New York Sets 2027 Rule For Emissions Reporting

In a significant step to enhance climate accountability, New York's Department of Environmental Conservation (DEC) has published draft regulations mandating annual greenhouse gas (GHG) emissions reporting by large emitters starting in 2027. Large emitters that emit 10,000 metric tons or more of carbon dioxide equivalent (CO2e) annually will be compelled to report their emissions data for the 2026 calendar year, representing an important milestone toward the state's ambitious climate agenda under the Climate Act.

The new regulation, which targets many high-polluting industries, is not meant to compel prompt emissions reductions or force allowance purchases. Rather, it emphasizes gathering data as the first step in the construction of New York's proposed cap-and-invest system. That emerging emissions trading regime is predicted to raise more than $1 billion a year, with the revenues used to reduce emissions and help disadvantaged communities statewide.

Organizations that are within the ambit of this rule include electricity generation plants, landfills, stationary combustion plants, natural gas compressor stations, anaerobic digestion facilities, and other infrastructure emitting at or above the 10,000 metric ton level. The rule also encompasses upstream participants like fuel providers, waste transporters, and agricultural lime and fertilizer distributors, extending its application to key sectors of the economy.

DEC Acting Commissioner Amanda Lefton highlighted the significance of this new regulation as a means to enhance environmental stewardship and public health in New York. "This data is important to inform the State's ongoing efforts to protect our environment and enhance the health and quality of life of all New Yorkers," she said. The data collected will not only inform the cap-and-invest program but also assist in building effective strategies for decreasing toxic air pollution and targeting climate investments where they can have the biggest impact.

The proposed regulation prescribes a number of compliance methods to help organizations meet the new standards. Beginning in June 2027, regulated facilities will need to report verified emissions data every year. Certain facilities will also have to go through third-party validation, guaranteeing the accuracy and integrity of the data reported. To reduce the reporting requirement, the DEC will offer an online portal, training materials, and a simplified emissions estimator tool. Additionally, data previously reported to state or federal programs can be reused in this system to make the process easier.

While the measure is currently aimed only at emissions reporting, it sets the stage for an enhanced climate policy. The cap-and-invest program, when put into place, will compel large emitters and fuel distributors to buy allowances under a reducing emissions cap, following successful models implemented by California and the European Union. The resulting revenues will be used to reduce emissions and mitigate the burdens of energy costs, especially for vulnerable and underserved populations.

This new rule arrives at a timely moment, when federal environmental protections are on the table for reconsideration and potential dismantling by the U.S. Environmental Protection Agency (EPA). With these events unfolding, New York's initiative continues and stabilizes emissions monitoring, adding to its commitment to climate action no matter the federal policy changes. "DEC is ready to fill the data gaps created by proposed federal rollbacks," Lefton confirmed.

The public will have an opportunity to comment on the draft rule, and the comment period will run through July 1, 2025. To facilitate widespread participation, the DEC will conduct two informational webinars and five public hearings, three in-person and two virtually, throughout the state. The final rule, based on stakeholder comment and public input, will be issued at the end of the year.

First announced by Governor Kathy Hochul in 2023, this reporting requirement is a landmark step in New York's larger climate agenda. It is a thoughtful and data-driven strategy for emissions reduction, environmental justice, and sustainable development. By institutionalizing open emissions tracking and building the infrastructure for future policy instruments such as cap-and-invest, New York is taking a leadership role among states on climate responsibility and environmental stewardship.

While the reporting mandate falls short of requiring emissions cuts today, it is a clear signal of where New York is going—a future where transparency, accountability, and climate resilience are inseparable.