Biden-Harris Propose Rule to Cut Methane Emissions, Spur Innovation
TL/DR –
The U.S. Environmental Protection Agency (EPA) has proposed a rule to address methane waste from the oil and gas sector. The rule will implement a charge on large methane emitters that exceed levels set by Congress, encouraging these industry players to deploy technologies and best practices to reduce emissions before new standards take effect. The rule, part of the Inflation Reduction Act, also includes $1 billion in financial and technical assistance to transition to low-emitting technologies, improvements to the Greenhouse Gas Reporting Program, and an incentive for facilities to reduce emissions to meet or exceed performance levels set by Congress.
January 12, 2024
The U.S. Environmental Protection Agency (EPA) today announced a proposed rule aimed at reducing wasteful methane emissions from the oil and gas sector. This rule, part of the Inflation Reduction Act directive, will charge certain large methane emitters which exceed the set emission intensity levels, encouraging the use of best practices to reduce pollution.
EPA Administrator Michael S. Regan said, “This proposal will support a set of technology standards and historic resources from the Inflation Reduction Act, to incentivize industry innovation and prompt action. Our aim is to ensure that America leads in deploying technologies and innovations that aid in the development of a clean energy economy.”
Senator Carper, Chairman of the Senate Environment and Public Works Committee, applauded the move, stating that the Methane Emissions Reduction Program will incentivize producers to cut wasteful methane emissions during oil and gas production.
Rep. Frank Pallone, Jr., Ranking Member of the House Energy and Commerce Committee, highlighted the importance of holding the largest polluters accountable and protecting American families from dangerous methane pollution.
Fred Krupp, President of the Environmental Defense Fund, noted the common sense in holding oil and gas companies accountable for pollution. He pointed out that proven solutions to cut oil and gas methane are already in use across the country.
Methane, a climate ‘super pollutant’, is more potent than CO2 and accounts for about a third of the current warming from greenhouse gases. The oil and natural gas sector is the largest industrial source of methane emissions in the U.S. Reducing these emissions is one of the most vital and cost-effective actions the U.S. can take to slow rapidly rising global temperatures.
In December 2023, the EPA issued a final rule to significantly reduce methane emissions from new and existing oil and gas operations. Additionally, the EPA is implementing the three-part framework of the Inflation Reduction Act’s Methane Emissions Reduction Program.
The EPA is partnering with the U.S. Department of Energy to provide over $1 billion dollars in financial and technical assistance to accelerate the transition to no- and low- emitting oil and gas technologies. Also, to increase the accuracy of reported methane emissions, the EPA is working with industry stakeholders to improve the Greenhouse Gas Reporting Program.
Today’s proposal seeks to encourage facilities with high methane emissions to meet or exceed the performance levels set by Congress. Facilities in compliance with the recently finalized Clean Air Act standards for oil and gas operations would be exempt from the charge after meeting certain criteria set by Congress.
The proposed Waste Emissions Charge will encourage the oil and gas industry to lower emissions. Operations with methane emissions exceeding the levels established in the Inflation Reduction Act can reduce or eliminate charges by using readily available technologies to reduce harmful emissions. This program will drive widespread methane reductions while the EPA and states work toward full implementation of Clean Air Act standards.
For more information, visit the Methane Emissions Reduction Program website.
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