Oil and natural gas facilities in the United States will need to increase the accuracy of methane emissions data under a final new rule issued by the U.S. Environmental Protection Agency.
The country’s biggest industrial source of methane comes from oil and gas facilities. Methane accounts for a third of greenhouse gases and although it dissipates more quickly than carbon dioxide has a greater effect on climate change.
According to the EPA, the rule strengthens, expands and updates methane emissions reporting requirements for petroleum and natural gas systems under the Greenhouse Gas Reporting Program. The program is required by the Inflation Reduction Act’s Methane Emissions Reduction Program.
“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,” said EPA Administrator Michael S. Regan in an EPA press release.
The data will be used to calculate a waste emissions fee, which is part of Joe Biden’s Inflation Reduction Act. Operators face a charge of U.S. $900 per metric ton for 2024 emissions. This will increase to $1,200/t next year and $1,500/t thereafter.
The new rule applies to fossil fuels extraction and transportation. But costs derived from compliance with the rule could be passed down the value chain. Industry insiders are said to have raised concerns over the potential for inflated data.
“We are reviewing the final rule and will work with Congress and the administration as we continue to reduce GHG emissions while producing the energy the world needs,” Argus reported American Petroleum Institute Vice President of Corporate Policy Aaron Padilla as saying.
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