Greenhouse Gases – EPA Final Rule for Oil and Gas Sector

The U.S. Environmental Protection Agency today issued a final rule to strengthen, expand, and update methane emissions reporting requirements for petroleum and natural gas systems under EPA’s Greenhouse Gas Reporting Program (GHGRP).* There are already significant legal challenges on both sides of the issue. This will likely add to the list of entities, lobbying groups and companies suing EPA.

“As we implement the historic climate programs under President Biden’s Inflation Reduction Act, EPA is applying the latest tools, cutting edge technology, and expertise to track and measure methane emissions from the oil and gas industry,” said EPA Administrator Michael S. Regan. “Together, a combination of strong standards, good monitoring and reporting, and historic investments to cut methane pollution will ensure the U.S. leads in the global transition to a clean energy economy,” Regan said.

EPA said revisions will ensure greater transparency and accountability for methane pollution from oil and natural gas facilities by improving the accuracy of annual emissions reporting from these operations. Oil and natural gas facilities are the nation’s largest industrial source of methane, a climate “super pollutant” that is many times more potent than carbon dioxide and is responsible for approximately one third of the warming from greenhouse gases occurring today.

Recent studies show that actual emissions from petroleum and natural gas systems are much greater than what has historically been reported to the GHGRP. This rule addresses that gap, including by facilitating the use of satellite data to identify super-emitters and quantify large emission events, requiring direct monitoring of key emission sources, and updating the methods for calculation. Together these changes support complete and accurate reporting and respond to Congress’s directive for the measurement of methane emissions to rely on empirical data.

EPA’s latest action is another part of  the Biden-Harris Administration’s whole-of-government initiative to slash methane emissions from every sector of the economy under the U.S. Methane Emissions Reduction Plan. In 2023, the Administration took nearly 100 actions, with coordination by the White House Methane Task Force, to bolster methane detection and reduce methane pollution from oil and gas operations, landfills, abandoned mines, agriculture, industry, and buildings.

The final rule updating the Greenhouse Gas Reporting Program is a key component of the Inflation Reduction Act’s Methane Emissions Reduction Program, passed by Congress to help states, industry, and communities implement recently finalized Clean Air Act methane standards and slash methane emissions from the oil and gas sector. The Biden-Harris Administration is also mobilizing more than $1 billion in financial and technical assistance to accelerate the transition to no- and low- emitting oil and gas technologies, as part of broad efforts to cut wasteful methane emissions.

*The GHG Inventory covers seven key greenhouse gases: carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride, and nitrogen trifluoride. In addition to tracking U.S. greenhouse gas emissions, the Inventory also calculates carbon dioxide that is removed from the atmosphere through the uptake of carbon in forests and other vegetation.

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