Biden administration considers new environmental designation for Permian Basin
The Biden Administration’s Environmental Protection Agency (EPA) is considering designating the Permian Basin in Texas as violating federal air quality standards for ozone.
A policy analysis by Tim Tarpley, Energy Workforce senior vice president of government affairs & counsel, found that the EPA is considering the change as tougher anti-smog requirements. The change in designation, Tarpley said, would impact the ability to drill and conduct other industrial activities in parts of the Permian.
“If the designation goes through, certain areas of the Permian would be considered ‘non-attainment zones,’” Tarpley wrote. “There are non-attainment zones located all around the country, generally found around areas of high population or significant industrial activity.”
The changed designation would set in motion processes that would force state regulators to create plans to combat air pollution that causes smog. Tarpley said that would force Texas to enact new permitting requirements and increase scrutiny around drilling operations. According to him, the state would have three years to develop a plan for lowering ozone levels in the non-attainment zone. If the state does not take actions that are sufficient for the EPA, he said, it could face penalties, including losing access to certain federal funds.
The EPA’s actions could potentially slow down drilling activity in the Permian – the country’s largest production area for oil and natural gas.
“As the country, and the world, suffers from a demand crunch and high energy prices, any actions that increase the cost of production or curtail the ability to produce in the basin could have significant economic effects,” Tarpley said. “Energy Workforce will continue to work with our allies at the federal and state level to oppose this action and keep our membership informed about potential implications moving forward.”
