EPA Adopts Revisions and Confidentiality Determinations for Petroleum and Natural Gas Systems Under the GHG Reporting Rule

As of January 1, 2025, new requirements will take effect for petroleum and natural gas facilities under the Greenhouse Gas…

As of January 1, 2025, new requirements will take effect for petroleum and natural gas facilities under the Greenhouse Gas Reporting Rule, aimed at improving the accuracy of GHG emissions reporting. The Environmental Protection Agency (EPA) has established these revisions to ensure data transparency and accuracy, impacting large petroleum and natural gas operators. Some provisions will start on July 15, 2024. This regulation aligns with the broader goals of the Inflation Reduction Act of 2022 and affects reporting and monitoring processes.The Environmental Protection Agency (EPA) has revised the rules applicable to petroleum and natural gas systems to improve the accuracy of greenhouse gas emissions reporting, specifically methane. The new rules will take effect on January 1, 2025, with some exceptions starting on July 15, 2024. Specifically, those sections that will go into effect on July 15, 2024 are as follows:

Sec. 98.233 (amending the method for calculating and reporting GHG emissions),
Sec. 98.236 (amendments for data reporting requirements), and
Sec. 98.238 (amendments to definitions). 

These changes require facilities to report more detailed and accurate data on emissions and adopt updated calculation methodologies.

Revised Requirements:

Facilities must use empirical data to report methane and other gas emissions.
New calculation methodologies and monitoring options have been added.
The revised methods allow for direct measurements for equipment leaks and natural gas pneumatic devices.

Impact on Operations:

The new rules will increase labor burden and implementation costs.
These regulations are expected to affect approximately 567 new reporters and 2,510 existing reporters.
Companies must comply with the new reporting and monitoring methods starting January 1, 2025.

Objective and Justification:

The revisions aim to ensure that reports accurately reflect total methane emissions.
The EPA has introduced these changes to comply with the emission reduction program and waste emissions charges established in the Inflation Reduction Act of 2022.

Key Dates:

The new rules take effect on January 1, 2025.
Some specific provisions will take effect on July 15, 2024.

The revisions to the EPA’s greenhouse gas emissions reporting rules for petroleum and natural gas systems represent a significant effort to improve data transparency and accuracy. These measures will require companies in the sector to adopt more rigorous reporting practices and face higher compliance costs.

Greenhouse Gas Reporting Rule: Revisions and Confidentiality Determinations for Petroleum and Natural Gas Systems, 89 FR 42062 (May 14, 2024)