ENV-16-33 What Does the New O&G Methane NSPS Mean for AFPM Members?

Description:

On June 3, 2016, EPA published a groundbreaking New Source Performance Standard, Subpart OOOOa, which will directly regulates methane for the first time1. Subpart OOOOa applies to certain new, modified, or reconstructed sources at upstream and midstream oil and gas operations. On the same day, EPA published a draft Information Collection Request (ICR) intended to gather information on existing oil and gas sources. These actions are key elements of the President’s Climate Action Plan. This paper reviews to overall status of treatment of greenhouse gas emissions in the United States and focuses on implications of EPA’s methane-focused actions for the downstream and petrochemicals sectors. Though tied up in court, EPA is also pursuing greenhouse gas regulation for fossil fueled power plants, the largest industrial source of greenhouse gases, and is midway through rulemaking for the upstream and midstream oil and gas industry, the second largest industrial source of greenhouse gases. Given EPA’s willingness and zest to pursue direct regulation of greenhouse gases, it is quite possible that they will resume their previous focus and proceed to the third largest industrial source of greenhouse gases, the refining industry. At a bare minimum, certain provisions of Subpart OOOOa, including next generation compliance approached are worth understanding as they are likely to find their way into regulations focused on refining.