FAQs

Subentities

• What is a subentity?

A subentity is a component of an entity, such as a discrete business line, facility, plant, vehicle fleet, or energy using system, whose emissions of greenhouse gases can be distinguished from the emissions of all other components of the same entity. The sum of emissions form all subentities should equal the entity's total emissions.

Instructions for Form EIA-1605,pp.6
General Guidelines,§300.2

• In which cases would I delineate subentities?

You would create subentities:

• To separate emissions and emission reductions by function or organization (optional);
• To separate U.S. and foreign emissions and emission reductions as required by the Program guidelines;
• To use different reduction estimation methods or output measures; and
• To, in certain circumstances, use different Base Periods to calculate reductions.

Separate subentities using the same reduction calculation method or output measure may not be created within a given functional or organizational unit unless they use different Base Periods.

General Guidelines,§300.2,§300.8(a)(2), and §300.8(b)
Technical Guidelines, Section 2.2.2 and Section 2.4.1.2

• Must an entity and its subentities share a common Base Period?

An entity and its subentities would not necessarily share the same Base Period. The Base Period might differ if, for example, the operations associated with a subentity are acquired after the original Base Period. (In this case, the guidelines require that a separate subentity be delineated for operations that have a distinct Base Period.)

Technical Guidelines, Section 2.3.3.4

• When must a subentity have a different Base period from the entity's other subentities?

A subentity must have a different Base Period from the entity's other subentities when:

• The subentity is a new business unit created since the entity's original Base Period with a unique output measure; or
• The subentity is an acquired business unit for which emissions or output data are not available for the entity's original Base Period.

 

• What emission sources should be included in the emissions inventory for each subentity?

In general, a subentity's emissions inventory should include all emissions sources associated with the activities of the subentity. To a large extent the emissions included depend on the method you intend to use to calculate emission reductions. EIA has prepared a Table summarizing the subentity emissions inventory requirements for each emission reduction method.

General Guidelines, §300.6
Technical Guidelines, Section 1.A.2