Update on EPA Oil and Gas Activities

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• Update on EPA Oil and Gas Activities

Bruce Moore, Office of Air Quality Planning
Standards, USEPA Carey Bylin, Office of
Atmospheric Programs, USEPA
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Overview

• Background
• New Source Performance Standards
• Control Technique Guidelines
• Voluntary Efforts
• Feedback
• Schedule

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Background

• In January, EPA announced a series of steps it
  plans to take to address methane and smog-forming
  VOC emissions from the oil and gas industry
• The goal is to ensure continued, safe and
  responsible growth in U.S. oil and natural gas
  production
• Our plans to address methane are part of the
  overall White House Methane Strategy
• The strategy consists of both regulatory and
  voluntary approaches

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New Source Performance Standards (NSPS)

• EPA plans to build on our 2012 NSPS for the oil
  and gas industry to reduce methane emissions and
  to achieve additional reductions in VOCs
• We are looking at cost-effective, commonsense
  requirements for new and modified oil and gas
  sources that are significant emitters of methane
  and VOCs.
• We are focusing on the sources covered in the
  five White Papers issued in 2014 for peer review
  and public comment
• Compressors
• Emissions from completions and ongoing production
  of hydraulically fractured oil wells
• Leaks
• Liquids unloading
• Pneumatic devices
• We plan to issue a proposal this summer and a
  final rule in spring 2016

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Control Technique Guidelines (CTGs)

• CTGs provide states guidelines for requiring
  reasonably available control technology (RACT) to
  achieve VOC reductions from existing sources in
  ozone nonattainment areas that are classified as
  Moderate and above, and in states in the Ozone
  Transport Region
• Once a final CTG is issued, states with ozone
  nonattainment areas that are required to
  implement RACT (areas classified as Moderate and
  above) and states in the Ozone Transport Region
  will need to update their State Implementation
  Plans showing how they will reduce VOC emissions
  from sources covered by the CTG
• Although not required, states can require RACT
  (and implement the CTGs) in attainment areas in
  their states, if they choose to do so
• We intend to identify commonsense requirements
  for significant emission sources
• We plan to issue the draft CTGs for public review
  and comment at the same time we issue a proposed
  NSPS

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Voluntary Efforts

• EPA plans to expand the successful Natural Gas
  STAR Program by launching a new partnership in
  collaboration with key stakeholders by the end of
  this year
• Under the new partnership, EPA plans to enter
  into voluntary agreements with individual
  companies that achieve the following
• Encourage innovation and ambitious commitments
  with flexible achievement mechanisms
• Provide accountability and transparency for
  reduction commitments, and
• Track progress toward specific methane emission
  reduction activities
• EPA is working with the departments of Energy and
  Transportation and with leading companies,
  individually or through broader initiatives such
  as the Downstream Initiative or the One Future
  Initiative, to develop a program based on robust
  commitments to reduce methane emissions
• EPA will release a program proposal in spring
  2015, and then collect and synthesize feedback in
  order to launch the new program with founding
  partners by the end of 2015

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Feedback

• EPA has been talking with states and tribes to
  hear how they have managed issues, and to get
  feedback that will help us as we develop the
  rule.
• In February, asked states and tribes to nominate
  themselves to participate in discussions. Eleven
  states and 8 tribes volunteered.
• Have been meeting to discuss questions, such as
• Whether states/tribes are, or have considered,
  regulating the sources identified in the white
  papers.
• Factors considered in determining whether to
  regulate them.
• Use of innovative compliance options
• Experiences implementing Control Techniques
  Guidelines (CTGs)
• Information/features that would be helpful to
  include in a CTG
• Whether any sources of emissions are particularly
  suitable to voluntary rather than regulatory
  action

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Schedule
Milestones Dates
Propose Voluntary Program Spring 2015
Propose NSPS for public comment Summer 2015
Issue draft CTGs for public comment Summer 2015
Launch Voluntary Program End of 2015
Finalize NSPS Spring 2016
Publish CTGs Spring 2016
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Contact Info

• Bruce Moore, Office of Air Quality Planning
  Standards, moore.bruce_at_epa.gov, 919-541-5460
• Carey Bylin, Office of Atmospheric Programs,
  bylin.carey_at_epa.gov, 202-343-9669