June 2025, Vol. 252, No. 6
Government
EPA Eyes Revisions to Pipeline Methane Rules After Tax Repeal
By Stephen Barlas, Contributing Editor, Washington, D.C.
(P&GJ) — Now that Congress has passed a resolution of disapproval, canceling the methane emissions tax on interstate gas pipelines, the Environmental Protection Agency (EPA) has its sights set on two more pipeline regulations, which it wants to either modify or cancel on its own authority. These regulations are on greenhouse gas emission reporting and emission standards and compliance schedules for the control of methane and other emissions. The two regulations are, with regard to methane emissions, intertwined.
Elizabeth Malone, an attorney with Skadden Arps Slate Meagher & Flom LLP, said in a blog post about the two EPA pipeline deregulatory actions:
Many of the administration’s environmental orders and actions have been, or likely will be, challenged in court, and it is uncertain how the courts will view these efforts. The long-term effect of these orders and deregulatory actions, therefore, remains to be seen.
In announcing the deregulatory efforts, EPA Administrator Lee Zeldin said:
Oil and gas standards promulgated by EPA must be rooted in the rule of law, not be used as a weapon to shut down development and manufacturing in the United States. EPA is reconsidering these regulations to ensure they do not prevent America from unleashing energy dominance and continuing our trajectory as a leader in clean energy and emissions reductions.
The greenhouse gas (GHG) reporting regulation, (Subpart W, in the agency’s Clean Air lexicon), enacted in 2010, requires interstate gas pipelines to report GHG data and other relevant information to the EPA. Much of that data is also available to the public.
INGAA said changes to the GHG reporting rule proposed by the EPA in 2022 (reproposed in 2023 and then made final in May 2024) would have a “significant impact” on the industry. The agency recently extended the reporting deadline for reporting year 2024 from March 31, 2025, to May 30, 2025.
The other upcoming regulatory change is to the March 2024 final rule (hereafter referred to as 0000 b/c), aimed at reducing methane emissions at natural gas industry sites by imposing new controls on such things as storage vessels and pneumatic controllers, as well as requirements for zero emission controllers and dry seals for centrifugal and rod packing of reciprocating compressors.
The EPA issued a notice of “reconsideration” of 0000 b/c soon after President Trump took office. This was based on a petition for review, submitted the American Petroleum Institute, in April 2024. The API was contesting a very narrow slice of the final rule, relating to vent gas net heating value (NHV) continuous monitoring requirements and alternative performance test (sampling demonstration) option for flares and enclosed combustion devices.
Then on Feb. 28, the API wrote to the EPA saying, “Upon review of the changes proposed in this action, we have found that the EPA only partially addressed our concerns and should make additional changes to fully address these issues and ensure the final rule is technically feasible and implementable.”
The EPA’s upcoming changes to the methane emissions rule may, in the end, not be all that important. Regarding enforcement of control violations, the EPA says it is also reining in the Mitigating Climate Change enforcement program, which began under the Biden administration and included natural gas facility inspections as one of its three areas of emphasis.
In fiscal year 2024, the EPA concluded 19 oil and gas enforcement cases, resulting in emissions reductions of over 829,000 mtpa of carbon dioxide equivalent methane and over 33,000 mtpa VOCs, and they imposed almost $72 million in civil penalties. Most of those appeared to be for violations of gas processing or production facilities.
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