November 3, 2021
EPA Proposes New Methane Regulations on Oil and Natural Gas Industries
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.
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.