Voluntary greenhouse gas program allows international credits.

The U.S. Dept. of Energy (DOE) recently announced that participants in a voluntary greenhouse gas reporting and registry program will be able to count emission reductions occurring outside of the U.S and may register emission cuts as potential credits toward future U.S. policy. The March 24, 2005 publication of the Federal Register contained the interim final rule including the revised general guidelines as well as draft technical guidelines.

The DOE first proposed a rule to revise the "General Guidelines Governing the Voluntary Reporting of Greenhouse Gases Program" established by Section 1065(b) of the Energy Policy Act of 1992, commonly known as the "1065(b) registry program" (68 Fed. Reg. 68, 204) in late 2003. The rules stem from a 2002 directive from President Bush to encourage voluntary participation, but at the same time remain flexible while implementing.

The Bush Administration has refused to implement the Kyoto Protocol, which mandates cuts in greenhouse gas emissions, in favor of voluntary efforts to reduce and report emissions. However, even regulatory observers have noted that creating a credible emissions inventory is the first step toward establishing any future mandatory program.

Although the initial proposal for rule changes didn't include allowing the reporting of international reductions, DOE did take public comments on the concept. After hearing comments on both sides of the debate, DOE decided to allow entities to report and register emission reductions from outside of the U.S. as long as they first report on their domestic operations and domestic reductions.

The agency says the new guidelines establish "a more credible database of emission inventories and net, entity-wide emission reductions," while keeping the program voluntary.

When they take effect this fall, the general and technical guidelines will replace the procedures for the voluntary reporting of greenhouse gases first issued by DOE in 1994.