EPA launches voluntary methane program

Oil and gas companies can set targets for emissions reductions from natural gas operations as part of greenhouse gas program

ALAN BAILEY

Petroleum News

The Environmental Protection Agency has announced that it is putting into operation a new voluntary program for reducing methane emissions from the oil and gas industry. EPA had proposed the program, known as the Natural Gas STAR Methane Challenge, in July 2015, and subsequently made adjustments to the program, based on comments received. The idea is that companies will make commitments for methane emission reductions, with accountability and transparency in progress in achieving those commitments, and with the potential for public recognition for leadership in reducing U.S. emissions.

EPA says that so far 41 companies have signed up to participate in the program. Based on information on the EPA website, these companies appear to operate in the natural gas and power industries in the Lower 48.

Methane, the primary component of natural gas, is a potent greenhouse gas with a global warming impact 25 times that of carbon dioxide.

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 new program builds on this arrangement by having companies commit to specific emission reduction initiatives and then publicly report on progress in achieving their commitments.

“To protect public health and combat climate change, today, we are expanding our voluntary partnerships to reduce methane emissions from the oil and gas sector through our new Methane Challenge program, which is a platform for companies to transparently report actions to reduce methane emissions and to be publicly recognized as leaders in reducing methane emissions in the United States,” said EPA Administrator Gina McCarthy on March 30 when announcing the launch of the new program. “The voluntary Methane Challenge program is one important part of our overarching strategy to reduce methane emissions, and complements regulatory efforts that will help the United States meet the Obama administration’s goal of reducing methane emissions by 40 to 45 percent by 2025.”

The Methane Challenge, as initially implemented, focuses on companies making commitments for best management practices for emission reductions, with EPA specifying one or more potential management practices for various emission sources and industry segments. Within six months of a company joining the program, the company will designate a commitment start date, with a target of achieving the commitment within five years of that date. EPA says that companies that have joined the program so far have made commitments such as the replacement or rehabilitation of cast iron and unprotected steel distribution gas mains, and the reduction of methane emissions from pipeline blowdowns.

Program participants will report annually to the EPA on progress in reaching their targets. EPA is developing a data system for the reporting.

EPA is still working on finalizing the mechanism for another commitment option that the agency had proposed in 2015 as part of the Methane Challenge program. This option, called the One Future option, will involve a company making a commitment to reducing its methane emissions intensity, a measure of the amount of methane emitted relative to the amount of methane processed. EPA said that it anticipates launching the One Future option soon.

EPA said that it announced the launch of its Methane Challenge program during the Global Methane Forum, an international event hosted by the Global Methane Initiative and the Climate and Clean Air Coalition. The Global Methane Initiative consists of a partnership of 43 countries, including the United States, with an objective of cost-effective methane emissions reductions from municipal solid waste, wastewater, agriculture, coal and the oil and gas sector, EPA said. The Climate and Clean Air Coalition is an international organization targeting what it characterizes as climate impacting air pollutants.