EPA Finalizes Enhanced Greenhouse Gas Reporting Requirements

According to an article by Foley, the U.S. Environmental Protection Agency (EPA) has published the final Greenhouse Gas Reporting Rule for petroleum and natural gas systems, as required by the Inflation Reduction Act of 2022 (IRA). This rule mandates expanded reporting, improved emissions calculation methods, and finalized confidentiality rules for specific data. Affected facilities include those in petroleum production, gas transmission, and utilities, which will face significant administrative costs and fees for methane emissions exceeding certain thresholds.

The article highlights that the IRA amended the Clean Air Act, compelling the EPA to establish reporting standards based on empirical data. Facilities emitting over 25,000 metric tons of carbon dioxide equivalent must now report greenhouse gas emissions, maintain data accuracy, and pay fees based on methane emission thresholds. This includes various segments of the oil and gas industry, such as onshore gas processing and transmission, LNG storage, and more. The EPA’s final rule encourages using advanced technologies for emission monitoring.

Under the new rule, a wide range of oil and gas equipment must report emissions, including CO2, CH4, and N2O. The rule also covers emissions from significant events like pipeline venting and overpressure releases. The reporting methodologies have been updated, and public disclosure of emissions is required, with limited data eligible for confidential treatment.

The rule takes effect on January 1, 2025, with some provisions starting on July 15, 2024. Facilities must quickly comply, potentially leading to legal challenges based on recent judicial precedents. The EPA’s objective is to ensure accurate emissions data and effective methane monitoring using updated formulas and methodologies.