Revisions to EPA’s Greenhouse Gas Reporting Program authorized by Congress will bring greater transparency and accountability for methane emissions from oil and natural gas facilities, one of the major drivers of climate change

The U.S. Environmental Protection Agency issued a final rule to strengthen, expand, and update methane emissions reporting requirements for petroleum and natural gas systems under EPA’s Greenhouse Gas Reporting Program, as required by President Biden’s Inflation Reduction Act. The final revisions will ensure greater transparency and accountability for methane pollution from oil and natural gas facilities by improving the accuracy of annual emissions reporting from these operations. Oil and natural gas facilities are the nation’s largest industrial source of methane, a climate “super pollutant” that is many times more potent than carbon dioxide and is responsible for approximately one third of the warming from greenhouse gases occurring today.

EPA’s latest action complements the Biden-Harris Administration’s whole-of-government initiative to slash methane emissions from every sector of the economy under the U.S. Methane Emissions Reduction Plan. In 2023 alone, the Administration took nearly 100 actions, with coordination by the White House Methane Task Force, to bolster methane detection and reduce methane pollution from oil and gas operations, landfills, abandoned mines, agriculture, industry, and buildings.

The final rule updating the Greenhouse Gas Reporting Program is a key component of the Inflation Reduction Act’s Methane Emissions Reduction Program, as designed by Congress to help states, industry, and communities implement recently finalized Clean Air Act methane standards and slash methane emissions from the oil and gas sector. The Biden-Harris Administration is also mobilizing over $1 billion in financial and technical assistance to accelerate the transition to no- and low- emitting oil and gas technologies, as part of broad efforts to cut wasteful methane emissions.

“As we implement the historic climate programs under President Biden’s Inflation Reduction Act, EPA is applying the latest tools, cutting edge technology, and expertise to track and measure methane emissions from the oil and gas industry,” said EPA Administrator Michael S. Regan. “Together, a combination of strong standards, good monitoring and reporting, and historic investments to cut methane pollution will ensure the U.S. leads in the global transition to a clean energy economy.”

Recent studies reveal that actual emissions from petroleum and natural gas systems are much greater than what has historically been reported to the GHGRP. This rule addresses that gap, including by facilitating the use of satellite data to identify super-emitters and quantify large emission events, requiring direct monitoring of key emission sources, and updating the methods for calculation. Together these changes support complete and accurate reporting and respond to Congress’s directive for the measurement of methane emissions to rely on empirical data.

Today’s announcement is EPA’s latest step in tackling methane emissions that are fueling climate change, building on the agency’s recently finalized Clean Air Act standards to sharply reduce methane and other harmful air pollutants from the oil and natural gas industry, promote the use of cutting-edge methane detection technologies, and deliver significant economic and public health benefits from methane emissions reductions. That rule established a Super-Emitter Program to help detect large leaks and releases, and today’s reporting rule will require owners and operators to quantify and report the emissions detected through that Program to help close the gap between observed methane emissions and reported emissions.

The final subpart W rule will dramatically improve the quality of emissions data reported from oil and natural gas operations, with provisions that improve the quantification of methane emissions, incorporate advances in methane emissions measurement technology, and streamline compliance with other EPA regulations. For the first time, EPA is allowing for the use of advanced technologies such as satellites to help quantify emissions in subpart W. In addition, EPA is finalizing new methodologies that allow for the use of empirical data for quantifying emissions, including options added in response to public comments on the proposed rule. The final rule also allows for the optional earlier use of empirical data calculation methodologies for facilities that prefer to use them to quantify 2024 emissions. These changes will improve transparency and expand the options for owners and operators to submit empirical data to demonstrate their effort to reduce methane emissions and identify whether a Waste Emissions Charge is owed, based on thresholds set by Congress.

Advanced measurement technologies, and their use for annual quantification of emissions, are evolving rapidly. EPA is committed to transparent and continual improvements to its programs to account for these advancements while ensuring reporting is accurate and complete. The agency intends to take the following steps to gather further information about advanced measurement technologies and to inform potential regulatory changes or other standard setting programs that encourage the use of more accurate and comprehensive measurement strategies:

• This summer, EPA will solicit input on the use of advanced measurement data and methods in subpart W by issuing a Request for Information and opening a non-regulatory docket, including specific questions and topics on which EPA seeks input from the public. EPA intends to use the feedback received to consider whether it is appropriate to undertake further rulemaking addressing the use of advanced measurement technologies in subpart W, beyond the role for these technologies that is already provided in today’s rule.
• EPA also seeks to continuously update its knowledge about new measurement and detection technologies, and to elicit input from stakeholders and experts about how such advances should inform EPA’s regulations. To keep pace with this dynamic field, EPA plans to undertake a solicitation or engagement for information about advanced measurement and detection technologies (in the form of a Request for Information, workshop, or similar mechanism) on at least a biennial basis. These engagements will enable EPA to learn about technological advances and the extent to which there is robust information about their accuracy, reliability, and appropriateness for use in a regulatory reporting program.

For more information about this action, please visit the GHG Reporting Program Rulemaking Resources webpage.

Background on the Methane Emissions Reduction Program in the Inflation Reduction Act

Methane is a climate “super pollutant” that is more potent than carbon dioxide and responsible for approximately one third of the warming from greenhouse gases occurring today. The oil and natural gas sector is the largest industrial source of methane emissions in the United States. Quick reduction of these methane emissions is one of the most important and cost-effective actions the United States can take in the short term to slow the rate of rapidly rising global temperatures.

EPA issued a final rule in December 2023 to sharply reduce methane emissions and other harmful air pollution from new and existing oil and gas operations.  In addition, EPA is working to implement the three-part framework of the Inflation Reduction Act’s Methane Emissions Reduction Program.

First, EPA is partnering with the U.S. Department of Energy to utilize resources provided by Congress in the Inflation Reduction Act to provide over $1 billion dollars in financial and technical assistance to accelerate the transition to technologies that reduce methane emissions and may  include funds for activities associated with marginal (i.e., low-producing) conventional wells, support for methane monitoring, and funding to help reduce methane emissions from oil and gas operations.

Second, with today’s announcement, as directed by Congress, EPA is updating subpart W of the Greenhouse Gas Reporting Program to ensure that reporting of methane emissions from oil and natural gas operations is based on empirical data and accurately reflects emissions.

Third, in January 2024 EPA proposed a rule to implement Congress’ requirement for a Waste Emissions Charge. To take advantage of near-term opportunities for methane reductions while EPA and states work toward full implementation of the final oil and gas rule, Congress directed EPA to collect a charge on methane emissions from large oil and gas facilities that are high-emitting and wasteful, based on data submitted under subpart W.

Background about Greenhouse Gas Reporting Program Requirements for Petroleum and Natural Gas Sector

The GHGRP requires reporting of greenhouse gas data and other relevant information from large GHG emission sources, fuel and industrial gas suppliers, and CO2 injection sites in the United States. Approximately 8,000 facilities are required to report their emissions annually, and the reported data are made available to the public in October of each year.

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Under the GHGRP, owners or operators of facilities that contain petroleum and natural gas systems and emit 25,000 metric tons or more of GHGs per year (expressed as carbon dioxide equivalents) report GHG data to EPA. Owners or operators collect GHG data; calculate GHG emissions; and follow the specified procedures for quality assurance, missing data, recordkeeping, and reporting. Subpart W consists of emission sources in ten segments of the petroleum and natural gas industry.