Regulatory Compliance & Reporting Flashcards
7 cards from real CAP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Regulatory Compliance & Reporting flashcards as text
Under the EPA's Mandatory Greenhouse Gas Reporting Rule (40 CFR Part 98), which facilities are required to report?
Answer: Facilities emitting 25,000 metric tons CO2e or more per year
40 CFR Part 98 requires facilities that emit 25,000 metric tons CO2e or more annually to report to EPA.
The SEC's climate disclosure rules require publicly traded companies to report Scope 1 and Scope 2 emissions. What additional disclosure may be required for larger accelerated filers?
Answer: Scope 3 (value chain emissions) if material
Larger accelerated filers must also disclose Scope 3 emissions if they are material or included in climate targets.
California's Cap-and-Trade Program is administered by which agency?
Answer: California Air Resources Board (CARB)
CARB administers California's Cap-and-Trade Program under AB 32 and subsequent legislation.
In the EU Emissions Trading System (EU ETS), what is the function of the 'linear reduction factor' (LRF)?
Answer: Determines the annual decrease in total allowances issued
The LRF mandates a fixed annual percentage reduction in the total cap of allowances, driving long-term decarbonization.
Which international framework established the first legally binding targets for developed nations to reduce GHG emissions?
Answer: Kyoto Protocol (1997)
The Kyoto Protocol (1997) was the first legally binding international treaty setting GHG reduction targets for Annex I countries.
When verifying a company's GHG inventory for regulatory reporting, an auditor discovers that the company applied an outdated emission factor. What is the most appropriate corrective action?
Answer: Require recalculation using the current emission factor and restatement if material
Material errors from outdated emission factors require recalculation and restatement to ensure regulatory report accuracy.
Under the GHG Protocol Corporate Standard, which boundary-setting approach assigns emissions based on a company's equity share in an operation?
Answer: Equity share approach
The equity share approach allocates GHG emissions proportional to the company's ownership stake in a joint venture or facility.