As President Biden joined world leaders in announcing a global methane pledge to reduce worldwide methane emissions by 30 percent by 2030, the Environmental Protection Agency (EPA) unveiled a proposed rule that would underpin the United States’ efforts to cut emissions of the greenhouse gas. In a new insight, Director of Regulatory Policy Dan Bosch explains the structure of the proposed rule and reviews EPA’s estimates of the economic impact and emissions reductions.  

Key points:

• EPA’s proposal would, for the first time, regulate existing facilities; it would also add additional requirements to newly built or modified facilities, which were previously regulated.

• While the proposed rule promises significant emissions reductions, it will likely be subject to litigation once finalized; it also raises questions about what will happen to a proposed methane emissions fee being considered in Congress.

• While some of the details of the proposal may change, EPA is likely to finalize the rule in substantially the same form by the end of 2022.

Read the analysis