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Con   gressionol Research Service
Informing the IegisIative debate since 1914


                                                                                       Updated September 5, 2023

The Legal Framework for Federal Methane Regulation


Methane  is a greenhouse gas with 25 times the warming
capacity of carbon dioxide. Methane makes up about 11%
of all greenhouse gas emissions in the United States.
Primary sources of methane include oil and gas production,
transportation and storage (methane is the main component
of natural gas), landfill gases, coal mines, and agricultural
practices. Methane emissions are primarily regulated under
the Clean Air Act (CAA) but may also be regulated
pursuant to other statutory authorities.

This In Focus summarizes existing federal authority to
regulate methane emitted from all sources except
agricultural sources. Methane emitted by agricultural
sources is addressed primarily through voluntary programs
and is thus outside the scope of this In Focus.

Clean   Air  Act
Section 111 of the CAA (42 U.S.C. § 7411) directs the
Environmental Protection Agency (EPA) to regulate
emissions from certain categories of stationary sources that
emit any pollutant that EPA has determined causes, or
contributes significantly to, air pollution which may
reasonably be anticipated to endanger public health or
welfare. EPA has identified methane as an air pollutant,
and it has listed oil and gas production, transportation and
storage facilities, and municipal solid waste landfills as
source categories that emit methane.

Once EPA  identifies a source category as contributing to
pollution that may endanger public health and welfare,
Section 111 requires EPA to develop New Source
Performance Standards (NSPS) to regulate emissions from
newly constructed, modified, or reconstructed sources in
that source category. Section 111 also requires EPA to
develop emissions guidelines for pollutants from existing
sources in categories for which EPA develops NSPS so
long as the pollutant to be regulated is not already regulated
pursuant to another provision of the CAA. NSPS and
emissions guidelines represent the level of emissions
reduction achievable by the application of the best system
of emission reduction (BSER) as determined by EPA.
Sources may achieve emissions reductions any way they
see fit so long as emissions reductions are equal to the
reductions achievable by the BSER identified by EPA.
Where  individual states have EPA-approved State
Implementation Plans (SIPs), states implement NSPS.
Otherwise, implementation of NSPS falls to EPA.
Individual states implement emissions guidelines through
SIPs that must be approved by EPA. In the event a state
does not submit an emissions guideline SIP, EPA must
develop one for the state. Performance standards and
emissions guidelines are then included in an individual
source's CAA permit.


Oil and Gas  Industry Methane   Regulations  Under
the CAA
Gas and oil production, transportation, and storage account
for about 32% of methane emissions in the United States.
On November   15, 2021, EPA released a proposed rule that
would establish NSPS and emissions guidelines for the oil
and gas source category for methane emissions. 86 Fed.
Reg. 63,110. On November  22, 2022, EPA released a
supplemental proposed rule.

If EPA promulgates the proposed rule without changes, it
would regulate methane in two significant ways. First, it
would require most onshore oil and gas production facilities
to stop venting and flaring methane-that is, releasing or
burning methane as a waste byproduct of the production
process. Facilities would be required to capture the methane
and either route it to a pipeline that would deliver the gas
for commercial use or use it onsite as a fuel source. If
neither option were available, the rule would permit
continued flaring of methane but would require a 95%
emissions reduction and additional monitoring and
reporting requirements.

Second, the rule would impose expanded methane leak
detection standards on oil and gas production equipment
and compressor stations by expanding the number of
components  checked for leaks and increasing the frequency
of monitoring. The supplemental proposal includes a matrix
for periodic and continuous emissions screening with
varying detection thresholds and monitoring frequencies.
Higher detection thresholds require more frequent
monitoring.

The supplemental proposal also includes a Super-Emitter
Response Program  for emissions of 100kg/hr or greater. If
such an event is detected, the owner or operator would be
required to identify the cause of the leak within five days
and plug the leak within ten days.

The proposed rule would also promulgate emissions
guidelines for existing sources that largely track the
limitations in the NSPS for new sources.

Municpal   Solid Waste  LandfiH  Methane
Regulations  Under  the CAA
Landfills account for approximately 17% of methane
emissions in the United States. EPA promulgated a new
NSPS  for municipal solid waste landfills in 2016. 81 Fed.
Reg. 59,276. The 2016 rule amended an earlier NSPS
issued in 1996. The 2016 rule applies to landfills built,
modified, or reconstructed after July 17, 2014, with a
design capacity of at least 2.5 million metric tons.

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