API Urges EPA to Finalize its Methane Rule with Modifications
WASHINGTON, February 13, 2023 – The American Petroleum Institute (API) today urgedU.S. Environmental Protection Agency’s (EPA) to modify its supplemental proposed rulemaking titled “Standards of Performance for New, Reconstructed, and Modified Sources and Emissions Guidelines for Existing Sources: Oil and Natural Gas Sector Climate Review” to accelerate the U.S. oil and natural gas industry’s progress in reducing methane emissions without compromising innovation or production of American energy.
“API supports the cost-effective, direct regulation of methane for new and existing sources across the supply chain to build on the progress our industry has made to reduce methane emissions,” said API Senior Vice President of Policy, Economics and Regulatory Affairs Frank Macchiarola. “While we support an effective federal regulatory framework, we are concerned the proposed rule as drafted could create barriers to innovation and hamper U.S. energy production, which could lead to higher energy costs.”
In its comments, API outlined concerns with several aspects of the proposed rule, including the applicability date of the final rule, the implementation of the Super-Emitter Response Program, the lack of flexibility for the use of alternative detection technologies and the associated gas provisions. API also provided recommendations that would foster industry innovation and result in a final rule that is cost-effective, feasible to implement and achieves continued meaningful reductions in methane emissions.
“America requires additional pipeline and processing capacity that are hindered due to permitting barriers. Additional takeaway capacity to move natural gas to market will enable further methane emissions reductions in the years to come. In order to achieve emission reduction goals, Congress and the administration must prioritize necessary permitting reform alongside EPA’s regulations,” said Macchiarola.
Voluntary, industry-led initiatives such as The Environmental Partnership have built on the progress industry has made to reduce emissions and continuously improve environmental performance. Since its founding in 2017 the Partnership has grown to include over 100 companies representing over 70% of total U.S. onshore oil and natural gas production. Thanks to innovation and initiatives like The Partnership, average methane emissions intensity declined by nearly 66% across all seven major producing regions from 2011-2021.
“API remains committed to working with EPA and the Administration to finalize a rule that advances progress made in reducing emissions and addressing the risks of climate change and ensures that our industry can continue to meet the world’s needs for affordable, reliable and cleaner energy,” Macchiarola concluded.
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