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EPA proposes voluntary methane program Companies in oil and gas industry could gain recognition for efforts in curtailing methane emissions from industrial operations ALAN BAILEY Petroleum News
The Environmental Protection Agency is proposing the launch of a new program aimed at encouraging the reduction of methane emissions from the operations of companies in the oil and gas industry. The agency says that the voluntary program, dubbed the “Natural Gas STAR Methane Challenge,” would help meet government targets for reduced methane emissions while giving recognition to companies that take action to curtail emissions of the gas.
Methane, the primary component of natural gas, is a potent greenhouse gas that can make a significant contribution to global warming if released into the atmosphere. The gas, processed and transported in large volumes in association with the natural gas industry, as well as being produced and used in conjunction with oil production, can be emitted for a number of reasons, including equipment leaks, compressor venting and pipeline venting.
Voluntary programs EPA has for 20 years been operating a voluntary Natural Gas STAR Program, in which companies have evaluated their operations and implemented ways of reducing their methane emissions. A commitment to participate in this existing program involves a requirement to report on actions taken but not on the results of those actions. The proposed new program would build on this arrangement by having companies commit to specific emission reduction actions or targets and then transparently report the results, EPA says.
The proposed program would work alongside and complement an existing industry program called One Future, an industry-led partnership in which companies make commitments to reductions in methane emissions, EPA says.
EPA says that it had previously considered implementing a program called Gas STAR Gold, in which companies could have achieved a “Gold” certification by implementing a comprehensive set of emission-source protocols for industrial facilities. However, following requests from companies for a more flexible approach, the agency instead opted for the proposed Methane Challenge Program, EPA says. Rather than focusing on individual facilities, the proposed program would emphasize company-wide commitments, with flexibility over various program elements, including implementation timeframes.
The objectives of the proposed program include the encouragement of ambitious industry commitments; the promotion of innovative approaches to emissions reduction; accountability and transparency in making and achieving commitments; recognition for companies that have made progress in reducing methane emissions; and the recognition of improved environmental performance through quantitative assessments of emission reductions.
And companies participating in the program would have an opportunity to be publicly recognized as leaders in reducing U.S. methane emissions, EPA says.
Two options EPA proposes two options for demonstrating methane emissions reduction: a commitment to best management practices for achieving emissions reductions, and a commitment to some level of methane emissions intensity, as in the One Future program. Emissions intensity refers to the amount of methane emitted in relation to the amount of methane produced.
A company would sign up for the Methane Challenge Program through a memorandum of understanding with EPA. The transparent reporting of results for the Methane Challenge Program would then, as far as possible, go through EPA’s existing greenhouse gas reporting program, EPA says. Companies signing up as partners in the program would track their progress through a mechanism such as a website, with EPA publishing annual reports compiling relevant data from partner companies for public release.
Companies signing up for the best management practice option within the program would designate a timeframe for implementing best management technologies and procedures. However, in the interests of achieving emissions reductions in the near term, implementation must be achievable within five years, and preferably sooner. Companies would report annually on progress in implementing mitigation actions and the program would track emissions reductions achieved through these voluntary actions.
EPA is proposing the organization levels within a company at which Methane Challenge commitments might appropriately be made. And, in recognition that there may be specific operational circumstances that might limit the implementation of best management practices, the agency is also considering the possibility of allowing exemptions for some emissions sources that do not represent a significant portion of overall emissions.
Companies opting to participate in the reduction in emissions intensity aspect of the program would join the existing One Future industry program. The One Future system involves companies making commitments to emission intensity goals, with flexibility in finding the most cost-effective means of achieving those goals, EPA says.
By joining the EPA Methane Challenge Program through One Future, a company would agree to provide relevant data to EPA, to demonstrate the results of methane reduction actions. EPA would provide a platform for the transparent tracking of a company’s progress against commitments made.
Seeking feedback In addition, EPA is seeking feedback on how to provide appropriate recognition and incentives for companies that have already made significant progress in implementing best practices for emissions reductions or in achieving emission intensity targets.
The agency is also looking for feedback on how or whether to include within the Methane Challenge Program commitments to reductions in methane emission rates, as an alternative to emission intensity targets. However, setting rate reduction targets rather than emission intensity targets would face several challenges, including a need to allow for the impact on total methane emissions of changes or expansions in a company’s operations, EPA says.
And EPA wants to establish mechanisms for the continuous improvement of the Methane Challenge Program itself by, for example, seeking and encouraging new best practices for emissions reduction and new methods for measuring and monitoring progress.
EPA is conducting a series of webinars during July to provide information about its proposals and the agency is seeking feedback from stakeholders by Sept. 1. The plan is then to revise the program, based on feedback received, before signing up initial company partners by the end of 2015. Program implementation would start on Jan. 1, 2016, with data tracking and collection systems being developed during the summer and fall of 2016. The first reports and data collection would be due in the spring of 2017, with the first data being published in the following fall.
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