In a recent blog post, I discussed how the Trump EPA has proposed doing away with greenhouse gas (GHG) emissions reporting. The proposed rule is one of several actions EPA Administrator Zeldin is taking to dismantle onerous climate change regulation meant to ultimately stop the production and consumption of oil, natural gas, and coal. I discussed how, rather than supporting this action, many large industry actors submitted comments urging EPA to continue requiring GHG reporting. Their main justification was to retain a GHG reporting mechanism for claiming 45Q carbon sequestration credits, although satisfying external “stakeholders” was also a motivation. The stakeholders such large industry actors should worry about satisfying are American citizens, by promoting policies that reduce energy costs, rather than European politicians with their failing climate agendas, but virtue signaling continues apace.
In my comments to the proposal, I urged EPA to disregard the industry’s misguided request. First and foremost, the section of the Clean Air Act (CAA) that’s been used to justify such reporting actually doesn’t provide EPA with the legal authority to do so. GHG reporting has been erroneously designed for broad public consumption rather than neutral fact-finding and regulatory purposes, as required by the CAA.
Further, the need for certain companies to report emissions in order to claim a tax credit doesn’t provide EPA with legal justification to collect GHG data. In my comments, I suggested companies and trades urging EPA to continue regulatory reporting should instead turn their focus to the Treasury Department to determine an alternative source of information for the 45Q credits. Small companies should not be burdened with the compliance cost and liability of GHG reporting to EPA just because some very large companies wish to continue taking advantage of carbon capture subsidies. Luckily, the Trump Administration is on top of the issue. In its first notice for 2026, the IRS issued a safe harbor for determining eligibility for 45Q credits if indeed EPA finalizes the proposed rule. The notice describes alternate means of reporting emissions for purposes of claiming the credit. The IRS action gives EPA a good retort to industry comments supportive of continued GHG reporting, although they already had a good counter in my comments. I’ve delivered a consistent regulatory message on climate change regulation over many years, and this is another example that it pays to be true to those principles.







