SPRING LITERATURE Showcase
or operators collect GHG data ; calculate GHG emissions ; and follow the specified procedures for quality assurance , missing data , recordkeeping , and reporting . Subpart W consists of emission sources in ten segments of the petroleum and natural gas industry .
The administration proposed the rule to reduce methane emissions for the oil and gas sector in January , including a charge on certain large emitters of waste methane from the oil and gas sector that exceed emissions intensity levels set by Congress . Working in tandem with unprecedented funding secured by President Biden under the Inflation Reduction Act and recently finalized technology standards for the industry issued in December 2023 , the proposed Waste Emissions Charge encourages the early deployment of available technologies and best practices to reduce methane emissions and other harmful air pollutants before the new standards take effect .
“ Under President Biden ’ s leadership , EPA is delivering on a comprehensive strategy to reduce wasteful methane emissions that endanger communities and fuel the climate crisis ,” said EPA
Committee . “ We know methane is over 80 times more potent than carbon dioxide at trapping heat in our atmosphere in the short term . Thankfully , the Methane Emissions Reduction Program – which Congress adopted as part of the Inflation Reduction Act – will incentivize producers to cut wasteful and excessive methane emissions during oil and gas production .”
“ For too long it has been cheaper for oil and gas operators to waste methane rather than make the necessary upgrades to prevent leaks and flaring . Wasted methane never makes its way to consumers , but they are nevertheless stuck with the bill ,” said Rep . Frank Pallone , Jr ., Ranking Member of the House Energy and Commerce Committee . “ The Methane Emissions Reduction Program and the proposed Waste Emissions Charge will ensure consumers no longer pay for wasted energy or the harm its emissions can cause . I commend EPA for taking the next step to hold the largest polluters accountable and protect American families from dangerous methane pollution .”
“ EPA ’ s proposal for a fee on oil and gas methane pollution implements the clean air protections for Americans that were part of the Inflation Reduction
A Waste Emissions Charge in the rule starts at $ 900 per metric ton of wasteful emissions in 2024 , increasing to $ 1,200 for 2025 , and $ 1,500 for 2026 and beyond . It applies to emissions that exceed statutorily specified levels .
Administrator Michael S . Regan . “ Today ’ s proposal , when finalized , will support a complementary set of technology standards and historic resources from the Inflation Reduction Act , to incentivize industry innovation and prompt action . We are laser-focused on working collectively with companies , states , and communities to ensure that America leads in deploying technologies and innovations that aid in the development of a clean energy economy .”
“ I ’ m pleased to see the Biden Administration move forward with this critical program to slow climate change and protect our one and only planet ,” said Senator Carper , Chairman of the Senate Environment and Public Works
Act ,” said Fred Krupp , President of the Environmental Defense Fund . “ It ’ s common sense to hold oil and gas companies accountable for this pollution . Proven solutions to cut oil and gas methane and to avoid the fee are being used by leading companies in states across the country .”
Methane is a climate “ super pollutant ” that is more potent than carbon dioxide and responsible for approximately one third of the warming from greenhouse gases occurring today . The oil and natural gas sector is the largest industrial source of methane emissions in the United States . Quick reduction of these methane emissions is one of the most important and cost-effective actions the United States can take in the short term to slow the rate of
32 JUNE 2024 | FUEL OIL NEWS | www . fueloilnews . com