US EPA announces new rule to regulate excessive methane emissions

The US Environmental Protection Agency (EPA) finalized a new rule that imposes fines on the oil and gas industry for excessive methane emissions. The rule aims to reduce methane emissions by an estimated 1.2 million metric tons through 2035.

The EPA will also enact new and stringent regulatory requirements for oil and gas facilities releasing methane. In specific, the guidelines seek to:

1. Eliminate “flaring,” or burning of  excess natural gas
2. Require more extensive monitoring for methane leaks
3. Update standards on emission productions from high-emitting methane equipment
4. Target “super emitters” that release excessive amounts of methane in the oil and gas sector.

In the press release, the EPA emphasized the new regulations “leverage innovative technologies and proven solutions that leading oil-and gas-producing states and companies are using–and have committed to use–to reduce dangerous air pollution.” The new technologies, including aerial screening, sensor networks, and satellites, help identify and remedy leaks or excess methane releases more efficiently. Also emphasized within the statement is the input of stakeholders to ensure flexibility in adjusting to the new regulations among the private sector and at a state-level, by providing incentives to states that comply with the regulations time-effectively.

The regulations are implemented in tandem with the Biden Administration’s Inflation Reduction Act, which seeks to strengthen environmental regulations and lower the consumer burden from inflation. Funding allocation to the EPA to improve methane gas analytics, emission reduction, and leak prevention is one of the directives outlined within the act and the White House guidebook.

In December 2023, the EPA estimated the new regulation would yield benefits of around USD$97-98 billion dollars after accounting for the costs of compliance, while also considering the savings from recovered natural gas and the climate and health benefits from reduced exposure to greenhouse gases.

Flaring remains prevalent among natural gas producers, as it is a relatively safe and efficient way to dispose of natural gas, which is prone to explosion and difficult to store. Flaring, however, produces extremely high amounts of greenhouse gases, a cause for concern as its byproduct, methane, causes about 80 times more warming per unit than carbon dioxide emissions do. Therefore, Flaring remains a critical target in reducing greenhouse gas emissions.