FACT
SHEET: EPA’S STRATEGY FOR REDUCING METHANE AND OZONE-FORMING POLLUTION FROM THE
OIL AND NATURAL GAS INDUSTRY
January
14, 2015 -- As part of the Obama Administration’s commitment to addressing
climate change, the U.S. Environmental Protection Agency (EPA) has outlined a
series of steps it plans to take to address methane and smog-forming VOC
emissions from the oil and gas industry, in order to ensure continued, safe and
responsible growth in U.S. oil and natural gas production. The agency’s commonsense
strategy will reduce methane pollution from new sources in this rapidly growing
industry, reduce ozone-forming pollutants from existing sources in areas that
do not meet federal ozone health standards, and build on work that
states and industry are doing to address emissions from existing sources
elsewhere.
Building
on Commonsense Standards for Methane and VOC Emissions
· Methane
–the key constituent of natural gas – is a potent greenhouse gas with a global warming
potential more than 25 times greater than that of carbon dioxide. Nearly 30
percent of methane emissions in the U.S. in 2012 came from oil production and
the production, processing, transmission and distribution of natural gas. While
methane emissions from the oil and gas industry have declined 16 percent since
1990, they are projected to increase by about 25 percent over the next decade
if additional steps are not taken to reduce emissions from this rapidly growing
industry.
· EPA’s
strategy will help avoid this anticipated increase in methane emissions from
new sources, and will use both regulatory and voluntary approaches to
accomplish this goal.
· The
agency also will extend requirements for addressing emissions of volatile organic
compounds (VOCs) to additional sources, further reducing this key ingredient of
ground-level ozone (smog).
- The
agency plans to build on its 2012 New Source Performance Standards for the oil
and natural gas industry to achieve both methane reductions and additional
reductions in VOCs. Those cost-effective standards relied on proven
technologies already in use, provided flexibility and incentives for industry
to modernize equipment and reduce pollution early, and strengthened
accountability, all while supporting continued growth in the sector.
- EPA
will follow a similar approach as it develops cost-effective, commonsense
requirements for new oil and gas sources that are significant emitters of
methane and VOCs. The agency will talk with industry, states and tribes as it
evaluates a range of approaches that can reduce methane and VOC emissions from
sources such as the equipment and processes discussed in the 2014 White Papers. These could include completions of
hydraulically fractured oil wells, pneumatic pumps, and leaks from new and
modified well sites and compressor stations.
- In
developing the proposal EPA anticipates a process for engaging directly with
states on approaches the agency should consider in setting standards. This
engagement will help ensure that the standards the agency issues are effective
in protecting public health and the environment while supporting continued
growth in this sector.
- A
number states regulate, or are considering regulating, air pollution from the
oil and gas industry, and EPA’s strategy anticipates that they will continue to
do so. Under the Clean Air Act, states have the authority to regulate air
emissions from sources within their boundaries, provided their requirements are
not weaker than federal rules. EPA plans to issue a proposed rule later this
summer and a final rule in 2016.
- In
addition, EPA will continue and expand its work to promote voluntary adoption
of cost-effective methane reduction technologies by the oil and natural gas
sector.
Reducing
Additional Pollution in Areas with Ozone Problems
· EPA
also plans to extend VOC reduction requirements to existing oil and gas sources
in areas that could particularly benefit from VOC reductions: ozone
nonattainment areas and states in the Ozone Transport Region. Reducing VOCs can
help reduce ground-level ozone (smog), which is linked to a number of serious
effects on public health.
· The
agency will do this by issuing Control Techniques Guidelines (CTGs) that
provide an analysis of the available, cost-effective technologies for
controlling VOC emissions from covered oil and gas sources. States would have
to address these sources as part of state plans for meeting EPA’s ozone health
standards.
· CTGs
give states critical information on cost-effective control technologies.
States have some discretion in applying these guidelines to individual
sources.
· Many
controls to reduce VOCs also reduce methane as a co-benefit. The CTGs
that EPA issues also will also provide states and any tribes that choose to do so
with a model they can put in place to address emissions from sources in other
areas where oil and gas activities are concentrated.
· EPA
plans to propose CTGs in the summer of 2015, and issue final guidelines in
2016.
Industry
Action to Reduce Methane Emissions
· In
addition to regulatory activities, several voluntary efforts to address these
sources are underway, including EPA’s plans to expand the successful Natural
Gas STAR Program by launching a new partnership in collaboration with key
stakeholders later in 2015.
· Under
the new program EPA will work with the departments of Energy and Transportation
and leading companies, individually or through broader initiatives such as the
Downstream Initiative or the One Future Initiative, to develop and verify
robust commitments to reduce methane emissions.
· Voluntary efforts to
reduce emissions in a comprehensive and transparent manner have the potential
to yield significant methane reductions in a quick, flexible and cost-effective
way. Achieving significant reductions through these voluntary industry programs
and state actions could reduce the need for future regulations. The
Administration stands ready to collaborate with participants in these and other
voluntary efforts, including in the development of a regime for monitoring,
reporting and verification.
FOR
MORE INFORMATION
· For
information on EPA’s 2012 New Source Performance Standards, visithttp://www.epa.gov/airquality/oilandgas/
· For
information on the Natural Gas STAR Program, visithttp://www.epa.gov/gasstar/