Obtain the data you need to make the most informed decisions by accessing our extensive portfolio of information, analytics, and expertise. Sign in to the product or service center of your choice.
With the debut of a US administration that has put climate
change near the top of its agenda, energy trade groups have started
to indicate they support federal policies implemented by President
Barack Obama to regulate methane emissions, and watered down or
canceled by President Donald Trump.
In January, the American Petroleum Institute, Edison Electric
Institute, Interstate Natural Gas Association of America (INGAA),
and the US Chamber of Commerce each issued statements that they
support a national program to regulate methane emissions, rather
than the current state-by-state approach. In the case of INGAA, the
announcement is a continuation of prior policy statements, but for
the other groups the announcements represent a change in
position.
INGAA, which represents operators of interstate gas pipelines,
issued its "2021 Vision Forward: Our Clean
Energy Commitments" on 26 January, a set of principles that
define the role of gas as critical to US and global energy needs
for the next 30 years, but also reinforced gas as a resource
enabling the transition to a net-zero energy future. In a briefing
to discuss the principles, INGAA's leaders said they support "cost
effective" regulations that bring "certainty" to the gas
industry.
"INGAA has expressed concern about the lack of predictability on
methane regulations for many years," said Amy Andryszak, president
and CEO. "From that perspective, we would be open to new [federal]
regulations, but they need to be safe, sound, and avoid unintended
consequences that would affect system reliability. And we would
want the rules to allow companies [to] have appropriate flexibility
to minimize emissions from their own operations."
When the US Environmental Protection Agency (EPA) issued the New Source Performance
Standards for oil and gas producers in 2016, which were
designed to reduce methane emissions by about 40%, INGAA sued over
the regulation. But Sandra Snyder, vice president and senior
regulatory attorney for INGAA, explained that the association did
not challenge EPA's authority to regulate methane; it just objected
to one part of the regulation related to the 30-day period required
to repair leaks on pipelines. Given the length of time needed to
obtain parts such as new valves to repair a leak, INGAA wants a
longer period for repairs, said Snyder, and then "we would support
the [Obama] regulation as written."
Changes afoot
The Biden administration has been encouraged by environmental
and public health organizations to return to and implement those
New Source Performance Standards. At the Trump administration's
request, a federal court stayed the regulations, while EPA revised
them. New rules were finalized in
August 2020, to the disapproval of environmental groups and even
some oil companies such as Shell.
Biden also could revive 2016 methane limits the US Bureau of
Land Management issued; its Methane and Waste Prevention
Rule for oil and gas operations on federal lands. Those
regulations were challenged by numerous industry trade groups,
attorneys general in oil- and gas-producing states, and some
individual companies. The Trump administration opposed those rules
as well, and a federal court vacated those rules in October
2020.
But it's a new policy regime in Washington, DC. "The message is
clear," said IHS Markit in an oil market briefing on 21 January.
"US politics and policies are moving rapidly away from those
pursued by the Trump administration over the past four years. The
effects are likely to be extensive and profound, including in the
world of energy, which is now at a pivotal moment in its transition
to cleaner power and fuels."
The API seems to be seizing the moment with its "a new position"
on methane regulations, as outlined by CEO Mike Sommers during the
association's annual "State of American Energy"
presentation, held virtually on 13 January. "We believe that this
administration is going to want our industry at the table to make
sure that they can put forward the most effective regulation
possible in this space that can actually survive judicial
scrutiny," he said. API met with Biden's transition team on the
topic, he said.
Like INGAA, API wants to see rules that allow for new technology
to be implemented in a "cost-effective" way, Sommers said. API has
been a leader in the voluntary methane-reduction program known as
the Environmental Partnership and is stepping up its work with that
coalition to share best practices to reduce flaring of methane.
Methane emissions in five of the largest US producing regions were
down nearly 70% between 2011 and 2019, thanks largely to industry's
voluntary programs, Sommers added.
However, API's new position on methane was apparently not enough
to satisfy Total, as the French oil company announced on 15 January
it was leaving API over several policy differences, including what
Total called API's "support for the [Trump] rollback of US
regulation on methane emissions."
Meanwhile, the EEI, which represents US investor-owned electric
utilities, announced on 22 January that it supports Biden's return
to the Paris Climate Treaty, electrification of the transportation
sector, and "EPA regulation of methane emissions throughout the gas
supply chain for new and existing sources."
Calling the switch from coal-fired power to gas "the single most
effective tool over the past decade for reducing carbon emissions,"
EEI said gas was established as an affordable, reliable fuel
source. "Strong and cost-effective federal regulations on methane
emissions across the value chain are essential to ensuring the
continued availability of natural gas as a 24/7 on-demand energy
source," it said.
Also in January, EEI and the American Gas Association circulated
their draft "Natural Gas Sustainability
Initiative," a voluntary program aimed at reducing the gas
industry's methane intensity (methane emissions per unit of gas
output) from production through gathering and boosting; processing;
transmission and storage; and distribution. The initiative lays out
test procedures and other protocols for reducing and tracking
methane emissions, as well as how to provide greater transparency
in reporting emissions. The two trade groups say that when the
protocol is finalized, they will encourage gas distributors and
buyers to incorporate it into their long-term contracts.
The US Chamber of Commerce is apparently onboard on methane,
too, as it issued what it called "an updated position statement" on
19 January. "The Chamber supports the continued reductions of
methane emissions, both voluntarily and by direct regulation under
the Clean Air Act," it said. "Such regulation must be smart and
follow the appropriate process under the Clean Air Act for
regulating methane as a pollutant and not be duplicative of
existing regulations while preserving state regulatory programs.
Additionally, regulations must encourage innovative solutions by
not prescribing technologies and be solely focused on the detection
and reduction of emissions in the US."
Posted 26 January 2021 by Kevin Adler, Chief Editor
{"items" : [
{"name":"share","enabled":true,"desc":"<strong>Share</strong>","mobdesc":"Share","options":[ {"name":"facebook","url":"https://www.facebook.com/sharer.php?u=http%3a%2f%2fcleanenergynews.ihsmarkit.com%2fresearch-analysis%2fus-energy-trade-groups-show-support-for-nationwide-methane-reg.html","enabled":true},{"name":"twitter","url":"https://twitter.com/intent/tweet?url=http%3a%2f%2fcleanenergynews.ihsmarkit.com%2fresearch-analysis%2fus-energy-trade-groups-show-support-for-nationwide-methane-reg.html&text=US+energy+trade+groups+show+support+for+nationwide+methane+regulation++%7c+IHS+Markit+","enabled":true},{"name":"linkedin","url":"https://www.linkedin.com/sharing/share-offsite/?url=http%3a%2f%2fcleanenergynews.ihsmarkit.com%2fresearch-analysis%2fus-energy-trade-groups-show-support-for-nationwide-methane-reg.html","enabled":true},{"name":"email","url":"?subject=US energy trade groups show support for nationwide methane regulation | IHS Markit &body=http%3a%2f%2fcleanenergynews.ihsmarkit.com%2fresearch-analysis%2fus-energy-trade-groups-show-support-for-nationwide-methane-reg.html","enabled":true},{"name":"whatsapp","url":"https://api.whatsapp.com/send?text=US+energy+trade+groups+show+support+for+nationwide+methane+regulation++%7c+IHS+Markit+ http%3a%2f%2fcleanenergynews.ihsmarkit.com%2fresearch-analysis%2fus-energy-trade-groups-show-support-for-nationwide-methane-reg.html","enabled":true}]}, {"name":"rtt","enabled":true,"mobdesc":"Top"}
]}