WASHINGTON - Continuing the Obama Administration's commitment to take action on climate change and protect public health, the E.P.A. (EPA) is announcing commonsense suggested requirements today that would reduce emissions of greenhouse gases (GHG) and volatile organic compounds (VOC) from the oil and natural gas industry. The suggestion is a part of the Administration's strategy under President Obama's
Climate Action Project to cut methane emissions from the oil and gas sector by 40 to 45 percent from 2012 levels by 2025.
Methane, the key constituent of natural gas, is a potent GHG with a global warming potential in excess of 25 times greater than that of carbon dioxide. Methane is the 2nd most prevalent greenhouse gas emitted in the U.S. from human activities, and nearly 30 percent of those emissions come from oil production and the production, transmission and distribution of natural gas.
"Today, through our cost-effective suggested standards, we are underscoring our commitment to reducing the pollution fueling climate change and protecting public health while supporting responsible energy development, transparency and accountability," said E.P.A. Administrator Gina McCarthy. "Cleaner-burning energy sources like natural gas are key compliance options for our Clean Power Project and we are committed to ensuring safe and responsible production that supports a robust clean energy economy."
The suggested requirements for new and modified sources are expected to reduce 340,000 to 400,000 short tons of methane in 2025, the equivalent of reducing 7.7 to nine million metric tons of carbon dioxide. E.P.A. estimates the rule will yield net climate benefits of $120 to $150 million in 2025. Those requirements are also expected to reduce 170,000 to 180,000 tons of ozone-forming VOCs in 2025, along with 1,900 to 2,500 tons of air toxics, such as benzene, toluene, ethylbenzene and xylene. Ozone is linked to a variety of serious public health effects, including reduced lung function, asthma attacks, asthma development, emergency room visits and hospital admissions, and early death from respiratory and cardiovascular causes. Air toxics include chemicals that are known or suspected to cause cancer and other serious health effects.
The suggested requirements will complement voluntary efforts, including
EPA's Methane Challenge Plan, and are based on practices and technology currently used by industry. To cut methane and VOC emissions, the suggestion requires:
· Finding and repairing leaks;
· Capturing natural gas from the completion of hydraulically fractured oil wells;
· Limiting emissions from new and modified pneumatic pumps; and
· Limiting emissions from several types of equipment used at natural gas transmission compressor stations, including compressors and pneumatic controllers.
EPA's Methane Challenge Plan that was suggested earlier this year expands on the successful
Natural Gas STAR Plan, which serves as a platform for companies who want to make an ambitious and transparent commitments to address methane emissions. This flexible Plan has the potential to foster significant cost-effective emission reductions across the oil and gas sector and to provide transparency on the progress partner companies are making to reduce emissions.
As part of the suggestion announced today, the agency is updating the 2012 New Source Performance Requirements (NSPS) to address methane as well as VOC emissions for sources covered in that rule. EPA's suggestion would also require that industry reduce VOC and methane emissions from hydraulically fractured and refractured oil wells, which can contain significant amounts of natural gas along with oil. In addition, the suggestion means methane and VOC reductions "downstream" from wells and production sites, covering equipment in the natural gas transmission segment of the industry that was not regulated in the agency's 2012 oil and natural gas rules. Additionally, the agency suggests to clarify and streamline Clean Air Act permitting requirements in states and Indian country.
Today's suggestion includes suggested guidelines for states to reduce VOC emissions from existing oil and gas sources in certain ozone nonattainment areas as well as mid-Atlantic and Northeast states that are part of the Ozone Transport Region.
E.P.A. will take review on the proposals for 60 days after they are published in the Federal Register. The agency will hold public hearings and will declare details soon.
More information, including technical fact sheets, is accessible at
http://www.epa.gov/airquality/oilandgas/actions.html
