New York finalizes new emissions reporting rules

December 09, 2025

New York is moving forward with a major climate initiative as natural gas plants, metal refineries, and landfills will now be required to report their greenhouse gas emissions under new regulations finalized Monday by the state Department of Environmental Conservation (DEC).

These reporting rules mark the first phase of New York’s broader plan to establish a statewide carbon cap through a forthcoming cap-and-invest program. Once fully implemented, fossil fuel facilities will be charged for the carbon they release, and the revenue will be reinvested into clean energy development while also funding consumer rebates.

For now, the newly finalized regulations focus on creating a comprehensive, accurate accounting of emissions from high-polluting facilities. The system to actually bill polluters for those emissions has not yet been activated.

Although many fossil fuel operations already submit emissions data—covering carbon dioxide, methane, and nitrous oxide—to federal agencies, the DEC noted that a robust state-level system is necessary to close information gaps and maintain oversight. New York officials also highlighted that the U.S. Environmental Protection Agency is preparing to scale back federal greenhouse gas reporting requirements, a move they say underscores the importance of state monitoring.

“The reporting rule ensures DEC can gather the critical information needed to reduce harmful air pollution and strategically direct clean energy investments, even as federal reporting faces rollbacks,” DEC Commissioner Amanda Lefton said. She added that the initiative will help protect consumers, improve public health, and strengthen the state’s economic competitiveness.

Under the new rules, any facility emitting 25,000 metric tons or more of carbon dioxide annually must report its emissions. According to EPA data, roughly 200 New York facilities exceeded that threshold in 2023. One example is the Bethlehem Energy Center, a natural gas plant near Albany, which emitted over 2 million metric tons of CO₂ that year.

Petroleum suppliers, natural gas distributors, and landfills will also be required to participate. The DEC estimates that compliance will cost facilities between $4,000 and $17,000, with the first annual reports due in June 2027.

Environmental advocates say the rules are a necessary foundation but not a replacement for enforceable pollution limits. “Reporting is not a substitute for regulating emissions,” said Kate Courtin, senior manager of state climate policy and strategy at the Environmental Defense Fund. She emphasized the urgent need for New York to finalize and implement its cap-and-invest system.

Gov. Kathy Hochul, once a strong supporter of cap-and-invest, has recently slowed efforts to advance the policy. Although state agencies completed draft regulations earlier this year, Hochul opted not to move them forward. However, an October ruling by State Supreme Court Justice Julian Schreibman found that the administration was failing to comply with the 2019 Climate Leadership and Community Protection Act. The court ordered the state to issue rules meeting the law's emissions-reduction mandates by February. While the state has appealed the decision, lawmakers could attempt to revise the Climate Act when they reconvene in January—though few Democrats have shown interest in doing so.

Supporters argue that cap-and-invest is crucial for reducing emissions and accelerating New York’s transition to clean energy. The program financially rewards facilities that reduce their carbon footprint and channels revenue back into the economy. State officials estimate up to $12 billion per year could be generated, with roughly one-third allocated to rebates for low- and moderate-income households to offset potential cost increases.

Many experts view carbon pricing as a powerful motivator for innovation. “I don’t know how else you create the market signal needed to drive clean energy investment without putting a price on carbon,” said Gavin J. Donohue, president and CEO of the Independent Power Producers of New York. “The goal of the Climate Act is to remove carbon from the environment, and an economic, market-driven model is the most effective way to achieve it.”