API urges EPA to modify proposed rule on methane emissions reduction

The American Petroleum Institute (API) is urging the U.S. Environmental Protection Agency (EPA) to modify its proposed rule to accelerate methane emissions reduction in the oil and gas industry.

The API outlined concerns with several aspects of the proposed rule, called Standards of Performance for New, Reconstructed, and Modified Sources and Emissions Guidelines for Existing Sources: Oil and Natural Gas Sector Climate Review. Among them, API voiced concerns about 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 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 Frank Macchiarola, API senior vice president of Policy, Economics, and Regulatory Affairs. “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 addition, API provided recommendations that it believes 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,” Macchiarola said. “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.”