EPA Finalizes Rule to Reduce Wasteful Methane Emissions in the Oil and Gas Sector

The EPA recently announced a final rule to reduce methane emissions from the oil and gas sector. The rule facilitates implementation of Congress’s directive in the Inflation Reduction Act to collect a Waste Emissions Charge to better ensure valuable natural gas reaches the market rather than polluting the air. Congress established the charge on large emitters of methane if their emissions exceed specific performance levels and directed EPA to collect the charge and implement other features of the program, including providing appropriate exemptions for actions that reduce methane releases. Today’s final rule delivers on this directive and incentivizes companies to take near-term action to conserve valuable energy resources for American consumers and reduce methane emissions – a potent greenhouse gas that is responsible for approximately one-third of the global warming we are experiencing today.

 

“The final Waste Emissions Charge is the latest in a series of actions under President Biden’s methane strategy to improve efficiency in the oil and gas sector, support American jobs, protect clean air, and reinforce U.S. leadership on the global stage,” said EPA Administrator Michael S. Regan. “EPA has been engaging with industry, states, and communities to reduce methane emissions so that natural gas ultimately makes it to consumers as usable fuel — instead of as a harmful greenhouse gas. Along with EPA’s complementary set of technology standards and historic financial and technical resources under the Inflation Reduction Act, today’s action ensures that America continues to lead in deploying technologies and innovations that lower our emissions.”

 

EPA estimates that this rule alone will result in cumulative emissions reductions of 1.2 million metric tons of methane (34 million metric tons CO2-equivalent) through 2035 — the equivalent of taking nearly 8 million gas-powered cars off the road for a year — and will have cumulative climate benefits of up to $2 billion.

 

As directed by Congress, the Waste Emissions Charge applies only to waste emissions from high-emitting oil and gas facilities. The Inflation Reduction Act provides that the Waste Emissions Charge applies to methane from certain oil and gas facilities that report emissions of more than 25,000 metric tons of carbon dioxide equivalent per year to the Greenhouse Gas Reporting Program, beginning with methane emissions reported in calendar year 2024. Also, as directed by Congress, the Waste Emissions Charge starts at $900 per metric ton of wasteful emissions in CY 2024, increasing to $1,200 for CY 2025, and $1,500 for CY 2026 and beyond, and only applies to emissions that exceed statutorily specified methane intensity levels.

 

EPA’s final rule details how the charge will be implemented, including the calculation of the charge and how exemptions from the charge will be applied. Facilities in compliance with the recently finalized Clean Air Act standards for oil and gas operations would be exempt from the charge after certain criteria set by Congress are met. The agency expects that over time, fewer facilities will face the charge as they reduce their emissions and become eligible for this regulatory compliance exemption.

 

In keeping with the provisions of the Inflation Reduction Act, the Waste Emissions Charge works in concert both with Clean Air Act standards issued in March 2024 to limit methane from new and existing oil and gas operations, and with over $1 billion in financial and technical assistance that EPA has partnered with the U.S. Department of Energy to provide under the Inflation Reduction Act to support monitoring and mitigation of methane emissions from the oil and gas sector. Combined, these actions will help position the United States as the most efficient producer of oil and natural gas in the world and ensure that the industry remains competitive in overseas markets that require a minimum level of emissions performance.

 

In the final rule, EPA made changes in response to public comments that will provide owners and operators of oil and natural gas facilities with greater flexibility to achieve emission reductions and thereby avoid the charge. States now have a stronger incentive to submit satisfactory plans for limiting methane from existing oil and gas operations in a timely manner. Additionally, the Waste Emissions Charge will apply until oil and gas operators achieve full compliance with state plans, helping to incentivize better performance. The final rule also provides additional clarity on exemptions and other provisions of the rule.

 

For more information, please visit the Methane Emissions Reduction Program website.

 

Federal inspectors have cited 595 Construction, LLC - a Crystal Lake contractor with a history of exposing employees to fall hazards - for eight safety violations after finding employees framing a residential structure without required protections three times at three residential worksites in the same neighborhood in May 2024.

 

Falls from elevation are the leading cause of fatal and serious injuries in the construction industry, and among the safety violations most cited by OSHA.

 

OSHA inspectors first observed 595 Construction employees at work without legally required equipment on a residential structure in an Elburn neighborhood. On May 10, they witnessed similar violations at 1501 Collins Drive and across the street at 264 Davidson Drive. Three weeks later, on May 31, OSHA again found employees exposed to fall hazards at a nearby worksite at 207 Davidson Drive.

 

The agency cited the company for allowing employees to work without protection at heights greater than six feet and for failing to certify they trained workers to recognize hazards or prevent falls. Inspectors also found 595 Construction permitted the unsafe use of ladders, did not ensure workers had certification needed to operate powered industrial vehicles, and used damaged slings to hoist materials.

 

In all, 595 Construction received one willful violation and four repeat and three serious violations for which the company faces $287,465 in proposed penalties. These are the latest infractions for a company cited for similar citations for serious and repeat safety failures in 2022 and 2023.

 

"After OSHA opens an investigation at one worksite, we often find the same contractor has done nothing to correct similar hazards at its other sites and not bothered to make certain to train work crews on complying with federal safety protections," explained OSHA Area Director Jacob Scott in Naperville, Illinois. "For several years, 595 Construction has shown a chronic disregard for safe work operations and a willingness to put its employees lives and well-being at risk."

 

In 2022, the Bureau of Labor Statistics reported 1,069 construction workers died on the job, with 395 of those deaths resulting from falls from elevation.

 

"Falls are the leading cause of injuries and deaths for construction workers. There is no excuse for 595 Construction failing to take immediate corrective action," Scott added.

 

 

The path to net-zero carbon emissions by 2050 presents the aviation industry with its greatest opportunity for innovation and growth, International Civil Aviation Organization (ICAO) Secretary General Juan Carlos Salazar told global airline leaders at the IATA World Sustainability Symposium recently held in Miami. 

 

Mr. Salazar called for unprecedented collaboration to accelerate the sector's green transition.

 

"By successfully navigating this transition, we can strengthen aviation's position as a driver of sustainable development worldwide, connecting people and markets while respecting environmental boundaries," he said.

 

The Secretary General’s keynote outlined ICAO's new long-term Strategic Plan 2026-2050, which includes the ambitious goal of achieving net-zero carbon emissions by 2050 for international civil aviation operations. This plan builds on the Long-term Global Aspirational Goal (LTAG) agreed upon by ICAO Member States in 2022 and the Global Framework on Sustainable Aviation Fuels established at the 3rd ICAO Conference on Aviation and Alternative Fuels (CAAF/3) in 2023.

 

A key focus of the address was the need for increased scaling up in the production and use of Sustainable Aviation Fuels (SAF). ICAO's Assistance, Capacity-building and Training for Sustainable Aviation Fuels (ACT-SAF) program was highlighted as a crucial initiative in this area. The Secretary General also introduced the ICAO Finvest Hub, a new platform aimed at linking clean energy project proposals with financing opportunities.

 

The importance of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) was reaffirmed, with a call for continued industry support for its implementation. Mr. Salazar also touched upon ICAO's recent symposium on non-CO2 aviation emissions, inviting industry expertise to contribute to this emerging area of study.

 

In his concluding remarks, the Secretary General emphasized the need for united advocacy efforts to showcase aviation's progress in reducing its environmental footprint and its role in driving economic development. He called on all stakeholders to work together in telling aviation's "great story" to the world and accelerating towards the shared goal of eliminating air transport emissions.

 

The IATA World Sustainability Symposium brought together leaders from across the global aviation industry to discuss and strategize on key sustainability challenges and opportunities facing the sector.

 

 

The Colorado Legislature voted to expand the areas covered by existing state chain laws under Senate Bill 24-100. From Sept. 1 through May 31, all commercial vehicles traveling on I-70 between the Dotsero exit (mile point (MP) 133) and the Morrison exit (MP 259) must carry sufficient chains to be in compliance with the Colorado chain law.

 

“Due to Colorado having higher elevations, it may be dry and blue skies on the front range, but winter weather is not uncommon in September and October. Winter patterns shift by elevation. It is imperative for all CMV drivers to be prepared and carry chains due to Colorado having such a variety of winter weather,” Colorado State Patrol said in a news release Thursday reminding drivers about the new law.

 

The law previously required truckers to carry chains on I-70 between Dotsero and Morrison. Now, annually, from September 1 to May 31, all commercial motor vehicles (CMVs) over 16,000 pounds must carry four snow chains or adequate alternate traction devices on their trucks if they are using any of the following roads:

 

In addition to expanding the areas where truckers are required to carry chains, there are new lane restrictions for CMVs. Truckers cannot use the left lane:

 

Commercial drivers are urged to pay attention to new signs still being placed along these areas, alerting CMV drivers of the restrictions. CMV drivers should go to freight.colorado.gov and cotrip.org to prepare for their trip and ensure they are in compliance.

 

 

ICAO Promotes Sustainable Aviation Fuel Investment Platform with Development Banks