Current Status
On December 2, 2023, EPA issued final new source performance standards and emissions guidelines for new and existing oil and natural gas facilities. The D.C. Circuit litigation for these standards is ongoing and on Oct. 4, 2024, the Supreme Court denied industry and state petitioners’ applications to stay the implementation of the rule while merits of the challenges are litigated. Thus, new sources must now comply with the standards and states plans to implement requirements for existing sources are due in March 2026 with compliance for those sources required by 2029 (see our timeline).
On May 14, 2024, in response to Congress’s direction in the IRA, EPA published the final revisions to the greenhouse gas reporting rule (GHGRP) for the oil and natural gas sector. Petitions for reconsideration to EPA are pending and litigation in the D.C. Circuit has commenced. The emissions reported under the GHGRP will be the basis for any payments under the Waste Emission Charge program. On January 12, 2024, EPA announced a proposed regulation to implement the Inflation Reduction Act’s Waste Emission Charge, and the final rule is currently in the interagency review process with the Office of Management and Budget (OMB).
Why it Matters
Methane is a powerful greenhouse gas released from oil and gas production, processing, transmission, and storage through equipment leaks, venting, and flaring.
During the Obama administration, EPA set standards for volatile organic compounds (VOCs) and methane emissions for new oil and natural gas sources (which included production, processing, transmission, and storage). This was the first rule expressly targeting methane emissions. The Trump administration revoked nearly all of these standards, leaving in place only some of the standards controlling VOCs from new sources. The administration also rolled back the efforts to develop a rule covering methane emissions from existing sources, having eliminated the legal predicate for doing so. For more information, see our detailed analysis of the final Trump-era rules rescinding methane emissions standards, EPA’s Final Methane Emissions Rules Roll Back Standards and Statutory Authority.
Starting in 2021, the Biden administration and Congress took steps to reinstate and expand the Obama-era methane standards for new and existing oil and natural gas sources. On June 30, 2021, President Biden signed a Congressional Review Act resolution passed by Congress that revoked the Trump administration’s rule. The US also jointly announced a methane reduction pledge with the EU in September 2021, ahead of COP26. Now over 155 countries are participating, with each agreeing to undertake voluntary actions to collectively contribute to reducing global methane emissions by 30 percent from 2020 levels by 2030.
Key Resources
- Methane Rules for the Oil and Gas Sector
- Video illustrating methane rulemakings and technology drivers
- Methane Rulemaking Timeline
- EPA’s Final Methane Rule — Incorporating Advanced Technologies and Emissions Data to Reduce Methane Emissions from the Oil and Natural Gas Sector.
- EPA’s Supplemental Methane Proposal—A Comprehensive Regulatory Framework to Encourage Use of Advanced Technologies and Significantly Reduce Methane Emissions
- CleanLaw — Carrie Jenks and Kate Konschnik Talk about EPA’s Proposed Methane Rules
- EPA’s Methane Proposal for the Oil and Gas Sector – A Strong Foundation to Reduce Methane Emissions and Regulatory Path for More
- EPA’s Final Methane Emissions Rules Roll Back Standards and Statutory Authority
- Weighing the Risks of Using the CRA to Restore EPA’s Methane Standards
Timeline
Oct. 7, 2024 The Office of Management and Budget (OMB) received EPA’s draft proposed rule for Reconsideration of Standards of Performance for New, Reconstructed, and Modified Sources and Emissions Guidelines for Existing Sources for review. The draft proposed rule addresses two issues on which EPA granted reconsideration: vent gas net heating value monitoring and alternate sampling demonstration requirements for flares and enclosed combustion devices and temporary flaring provisions for associated gas in certain situations.
Oct. 4, 2024 The Supreme Court denied industry and state petitioners’ applications for stay.
Sept. 4, 2024 The court issued an order severing case No. 24-1118 and specific aspects of the rule related to flares from the litigation and holding it in abeyance. The court also set the briefing schedule, with final briefs due on April 17, 2025. State of Texas v. EPA, Docket No. 24-1054 (D.C. Cir. Mar 8, 2024).
Aug. 27, 2024 Oklahoma and other states asked the Supreme Court to stay EPA’s oil and gas methane rule after the D.C. Circuit declined to stay the rule. The states asked the Supreme Court to pause the portion of the rule that applies to existing oil and gas sources from going into effect. Oklahoma v. EPA, Supreme Court Docket No. 24A213. On October 4, 2024, the Supreme Court denied industry and state petitioners’ applications for stay.
August 15, 2024 EPA filed its response brief in defense of its methane rule for oil and gas facilities. State of Texas v. EPA, Docket No. 24-1054 (D.C. Cir. Mar 8, 2024).
July 9, 2024 The DC Circuit denied requests to stay EPA’s oil and gas methane rule from Oklahoma and a coalition of other states, stating that the petitioner did not satisfy the requirements for a stay pending judicial review. State of Texas v. EPA, Docket No. 24-1054 (D.C. Cir.).
June 6, 2024 Interstate Natural Gas Association of America filed a motion to intervene. State of Texas v. EPA, Docket No. 24-1054 (D.C. Cir. Mar 8, 2024).
June 4, 2024 The D.C. Circuit issues a scheduling order requiring responses to the stay motions due June 11, 2024 and replies to the response due June 18, 2024 (later extended to June 24, 2024). State of Texas v. EPA, Docket No. 24-1054 (D.C. Cir. Mar 8, 2024).
May 14, 2024 EPA published its final rule amending Subpart W of the Greenhouse Gas Reporting Rule, as required by the Inflation Reduction Act, to incorporate empirical data.
May 6, 2024 EPA published a letter granting reconsideration on two issues: vent gas net heating value monitoring and alternate sampling demonstration requirements for flares and enclosed combustion devices and temporary flaring provisions for associated gas in certain situations.
April/May. 2024 Several state and industry petitioners filed a motion asking the D.C. Circuit to stay EPA’s new source performance standards. Texas et al. v. EPA et al., No. 24-1054 (D.C. Cir).
March/April 2024 Twenty-five states, as well as the Arizona legislature, filed petitions asking the D.C. Circuit to review EPA’s final new source performance standards for new and existing oil and gas facilities. Industry groups filed petitions challenging EPA’s methane regulations. Environmental NGOs also filed a petition challenging the regulation. Texas et al. v. EPA et al., No. 24-1054 (D.C. Cir).
Jan. 12, 2024, EPA announced a proposed a rule that would implement the IRA’s Methane Emissions Reduction Program. The IRA directed EPA to impose a charge on methane emissions that exceed specified thresholds from owners or operators of large oil and natural gas facilities.
Dec. 2, 2023 EPA issued the final new source performance standards and emissions guidelines for new and existing oil and gas facilities.
July 6, 2023 EPA issued proposed rules to update Subpart W for its Greenhouse Gas Reporting Rule in accordance with the Inflation Reduction Act.
Dec. 6, 2022 EPA published the Supplemental Proposal.
Nov. 11, 2022 At the UN climate conference in Egypt (COP27), President Biden announced the release of EPA’s Supplemental Proposal to reduce methane emissions from the oil and gas sector. This Supplemental incorporated feedback from commenters on the 2021 Proposal and proposes a more comprehensive regulatory framework that encourages use of advanced technologies to reduce emissions. To learn more, read our paper discussing the Supplemental Proposal here.
Nov. 4, 2022 EPA issued a Request for Information for input to inform the program design for the IRA’s methane provisions and other air quality programs.
Aug. 16, 2022 President Biden signs the Inflation Reduction Act, which included a backstop methane waste charge for large emitters. This fee applies until and unless all states have EPA-approved state implementation plans for the forthcoming methane rule. Read more about the IRA’s impacts on methane here.
May 6, 2022 Bipartisan lawmakers wrote a letter to EPA Administrator Regan urging EPA to adopt a “matrix approach” that allows for flexible implementation of emerging advanced emission detection technologies as an alternative to BSER without waiting for EPA to issue a new rule.
Nov. 2, 2021 EPA proposed new performance standards and emissions guidelines for new and existing oil and gas facilities. The proposed rule included performance standards for new and modified oil and gas facilities and included for the first time, emission guidelines for existing sources.
Sep. 18, 2021 The US and EU jointly announced a pledge to reduce global methane emissions by at least 30 percent from 2020 levels by 2030. The announcement is also an invitation to other countries to join.
April/June 2021 The U.S. Senate passed the Congressional Review Act resolution disapproving of the Review Rule, sending it to the House.
The U.S. House voted for a Congressional Resolution Act resolution to revoke the Review Rule. President Biden signed the resolution on June 30, 2021.This CRA nullified the Trump administration’s rule that cut transportation and storage facilities and determined methane was duplicative for the remaining facilities.
May 14, 2021 EPA opens a non-rulemaking docket for public input on reducing emissions of methane and other air pollutants from new and existing sources in the oil and natural gas sector.
April 26, 2021 The U.S. Senate passes the Congressional Review Act resolution disapproving of the Review Rule, sending it to the House.
March 25, 2021 Congressional Democrats announce they will propose a resolution of disapproval under the Congressional Review Act for the Review Rule. This would nullify the rule that cut transportation and storage facilities and determined methane was duplicative for the remaining facilities but leave the Reconsideration Rule’s technical amendments on well completions, pneumatic pumps, storage vessels, fugitive emissions, inspections, etc. to the EPA to address through new rulemaking.
Feb. 12, 2021 The D.C. Circuit agreed to hold the case brought by states and cities in abeyance and directed EPA to file status reports every 120 days beginning June 14, 2021. California v. Wheeler, No. 20-1357 (D.C. Cir.).
Feb. 1-5, 2021 EPA filed motions to hold the case challenging the Trump era methane rules in abeyance. CA v. Wheeler, 20-1357 (D.C. Cir.); EDF v. Wheeler, 20-01359 (D.C. Cir.) as well as in case numbers 20-1360, 20-1364, 20-1367 in the D.C. Circuit.
Jan. 20, 2021 President Biden signed EO 13990 instructing EPA to consider suspending, revising or rescinding the Trump era rule for new sources by May 2021. It also directed EPA to propose a rule for existing sources by September 2021.
Sept. 14-15, 2020 EPA finalized the Review and Reconsideration Rules removing regulatory requirements for the transmission and storage segments of the oil and gas industry. A coalition of 24 states and municipalities filed challenges the Review Rule, arguing it violates the Clean Air Act. CA v. Wheeler, 20-1357 (DC Cir.). A coalition of environmental groups also sued EPA in the DC Circuit challenging both the Review Rule and the Reconsideration Rule. Consolidated under Environmental Defense Fund, et al v. Andrew Wheeler, et al, Docket No. 20-01359 (D.C. Cir.).
August 13, 2020 EPA released its final rescission and revision of the 2012 and 2016 VOC and methane standards for oil and gas facilities. The two actions, referred to as the Reconsideration Rule and Review Rule, fully rescind VOC and methane standards for transmission and storage and methane standards for all segments, and revise standards for VOC emissions in the production and processing segments. The rule would limit the ability of EPA to regulate GHG emissions from any source.
Aug. 29, 2019 EPA released a proposal to roll back methane regulations finalized in 2016. The proposal rescinded emissions limits for methane on oil and gas production and processing. EPA also included a proposal to remove transmission and storage from regulation and requested comment on alternative interpretations of EPA’s legal authority to regulate pollutants under section 111(b)(1)(A) of the Clean Air Act. A number of larger energy companies urged the administration not to rescind the regulations while smaller operators who have not yet significantly invested in methane reduction are supportive of rescission.
Oct. 15, 2018 EPA published its proposal to revise the 2016 oil and gas NSPS.
April/May 2018 Fourteen states, the District of Columbia, and the City of Chicago sued EPA for its failure to regulate emissions from existing oil and gas operations. NY v. Wheeler, 1:18-cv-00773 (D.D.C.). Environmental Defense Fund intervenes on behalf of the state plaintiffs.
March 12, 2018 EPA published a final amendment to the 2016 NSPS rule allowing leaks to go unrepaired during unscheduled or emergency shutdowns.
March 9, 2018 EPA published a notice of proposed withdrawal of Control Techniques Guidance issued on October 27, 2016, which provided recommendations for reducing VOCs from existing oil and gas sources that relied on data and conclusions made in the June 3, 2016 NSPS rule.
Nov. 8, 2017 EPA issued two Notices of Data Availability to justify its proposed compliance delay of the rule and solicit comments on certain proposed substantive changes.
July 31, 2017 Environmental groups asked the court to reissue its mandate and direct EPA to implement all provisions of the 2016 rule. The D.C. Circuit held thatEPA must enforce the methane rule.
July 7-13, 2017 EPA asked the court not to require the agency to carry out the rule, at least until EPA can decide whether to ask the full D.C. Circuit to reconsider, or appeal to the Supreme Court. The D.C. Circuit granted a limited stay of 14 days.
June 16, 2017 EPA proposed to delay key provisions of the methane rule for two years, acknowledging “associated climate and human health benefits” will be foregone as a result. The D.C. Circuit vacated EPA’s three-month delay of the methane rule on July 3, 2017.
June 5, 2017 EPA published its reconsideration of the two provisions referenced in the April 18, 2017 letter as well as two professional engineer certification requirements. EPA also delayed key provisions of the rule including the leak detection and repair (LDAR) requirements for three months. Environmental groups challenged the reconsideration and delay. Clean Air Council et al. v. Pruitt, Case No. 17-1145 (D.C. Cir.).
May 18, 2017 The D.C. Circuit suspended the case and directed EPA to submit 60-day status reports.
April 18, 2017 Administrator Pruitt informed industry that EPA will reconsider at least two parts of the 2016 methane rule: a provision for states to request permission to set alternative emission limits and treatment of low production wells.
March 28 – April 7, 2017 President Trump issued Executive Order on Promoting Energy Independence and Economic Growth directing EPA to reconsider the Obama administration rule . In response, EPA announced it would review the 2016 NSPS to determine if it needs to initiate additional rulemaking proceedings. 82 FR 16332. EPA moved to suspend the D.C. Circuit case while it reconsidered the rule.
March 1-2, 2017 Eleven states asked EPA Administrator Pruitt to cancel the ICR for existing oil and gas sources issued in November 2016. EPA agreed to cancel the ICR.
Jan. 5, 2017 The D.C. Circuit consolidates several challenges to EPA’s rule. American Petroleum Institute v. EPA, Case No. 13-1108 (D.C. Cir.).
Nov. 10, 2016 EPA issued an Information Collection Request (ICR) to operators, asking them to identify ways to control methane from existing oil and gas sources; covered facilities and processes including “onshore production, gathering and boosting, gas processing, transmission, storage, and liquefied natural gas (LNG) import/export.” This was the agency’s first step toward regulating existing oil and gas infrastructure for methane leaks, venting, and flaring.
Oct. 27, 2016 EPA published final “Control Techniques Guidelines for the Oil and Natural Gas Industry.” The document provided states with moderate ozone nonattainment areas information to help them determine reasonably available control technology (RACT) for VOC emissions. As a result of publication, states must amend their State Implementation Plans (SIPs) to address VOCs from existing sources via a set of controls that would reduce methane emissions occurring at those sources using RACT.
June 3 and Aug. 2, 2016 EPA finalized New Source Performance Standards (NSPS) for VOC and methane emissions from the oil and natural gas sector. Additional sources are covered under this rule. This rule triggered the obligation to regulate methane from existing wells and equipment. Industry petitioned EPA to reconsider the rule.
Sept. 23, 2013 and Dec. 31, 2014 EPA finalized amendments to the Aug. 16, 2012 NSPS amending and clarifying certain issues related to well completions and storage vessels, among others, and making technical corrections. 78 FR 58416 and 79 FR 79018.
Aug. 16, 2012 EPA finalized New Source Performance Standards (NSPS) for VOC emissions from new wells and other oil and natural gas equipment. This rule addressed methane emissions indirectly but did not apply to existing sources.
