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Regulatory Impact Analysis for the Final Oil and Natural Gas Sector: Emissions Standards for New, Reconstructed and Modified Sources

Regulatory Impact Analysis for the Final Oil and Natural Gas Sector: Emissions Standards for New, Reconstructed and Modified Sources

Full Title: Regulatory Impact Analysis for the Final Oil and Natural Gas Sector: Emissions Standards for New, Reconstructed and Modified Sources
Author(s): Office of Air and Radiation; Office of Air Quality Planning and Standards
Publisher(s): U.S. Environmental Protection Agency
Publication Date: May 1, 2016
Full Text: Download Resource
Description (excerpt):

The action analyzed in this regulatory impact analysis (RIA) amends the new source performance standards (NSPS) for the oil and natural gas source category by setting standards for both methane and volatile organic compounds (VOC) for certain equipment, processes and activities across this source category. The Environmental Protection Agency (EPA) is including requirements for methane emissions in this rule because methane is a greenhouse gas (GHG), and the oil and natural gas category is the country’s largest emitter of methane. In 2009, the EPA found that by causing or contributing to climate change, GHGs endanger both the public health and the public welfare of current and future generations.

The EPA is amending the NSPS to include standards for reducing methane as well as VOC emissions across the oil and natural gas source category. Specifically, we are establishing both methane and VOC standards for several emission sources not covered by the 2012 NSPS (i.e., hydraulically fractured oil well completions, fugitive emissions from well sites, compressor stations, pneumatic pumps). In addition, we are establishing methane standards for certain emission sources that are regulated for VOC under the 2012 NSPS (i.e., hydraulically fractured gas well completions, equipment leaks at natural gas processing plants). However, we do not expect any incremental benefits or costs as a result from regulating methane for VOC sources regulated under the 2012 NSPS.

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