Martin Schneider
GHG Monitor
4/4/2014
The Environmental Protection Agency will release a series of white papers this spring and solicit input from independent experts “on several potentially significant sources of methane in the oil and gas sector” to help inform whether additional regulations are needed, according to the Obama Administration’s March 28 methane reduction strategy. “Reducing methane emissions is a powerful way to take action on climate change; and putting methane to use can support local economies with a source of clean energy that generates revenue, spurs investment and jobs, improves safety, and leads to cleaner air,” the White House said in a fact sheet accompanying the strategy, which also addresses methane reduction at coals mines, landfills and in the agriculture sector. “When fully implemented, the policies in the methane strategy will improve public health and safety while recovering otherwise wasted energy to power our communities, farms, factories, and power plants.”
The EPA white papers “will focus on technical issues, covering emissions and control technologies that target both VOC and methane—with particular focus on oil and co-producing wells, liquids unloading, leaks, pneumatic devices and compressors. The agency will use these technical documents to solidify its understanding of these potentially significant sources of methane,” the Administration’s strategy says. The document adds that when it comes to decisions on new regulations, “This fall, the EPA will determine what if any regulatory authorities, including setting standards under section 111 of the Clean Air Act or issuing Control Techniques Guidelines under section 182 of the Act, the agency will apply to emissions from these sources. If the agency determines to follow a regulatory course of action, it will undertake a schedule that will ensure that both rulemaking and any ensuing regulatory requirements for the states are completed by the end of 2016.”
Lawmakers Question Need for Addl. Regulations
EPA Administrator Gina McCarthy faced a number of questions about the methane reduction strategy at a hearing before two House Energy and Commerce subcommittees this week, with several lawmakers raising concern about additional regulations. “I’m concerned that these efforts could harm the economy of many states and especially states who are trying to promote their own efforts and other states that are seeing the benefits of unconventional oil and gas production,” Rep. Cory Gardner (R-Colo.) said at the hearing, adding, “If EPA hasn’t decided whether to issue regulations or what form they may take or confirm the statutory authority, why are you setting up a schedule for completing the regulations?”
McCarthy responded that the Administration is seeking to “send the signal to the industry about when it might be considered. But the first step is a white paper to collect information. Colorado and other states have been developing their own regulations on these issues. We’re very respectful of that. We need to work with the states and the industry before any decision is made.” She also noted, “We have already issued a new source performance standard that captures the volatile organic compounds in the emissions from unconventional gas when hydrofracking happens. Part of that captures the methane as well. It is very cost-effective. In fact, it is one of the few rules that EPA has done, at least in my tenure, that makes the obligated parties money. It doesn’t take it away because you can certainly re-use the methane and sell it.”