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EPA Proposes Oil and Gas Targeted Improvements Package to Advance President Trump’s Energy Dominance Agenda

Proposal to save $484 million in regulatory costs

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WASHINGTON  — Today, the U.S. Environmental Protection Agency (EPA) proposed targeted improvements to the 2016 New Source Performance Standards for the oil and gas industry that streamline implementation, reduce duplicative EPA and state requirements, and significantly decrease unnecessary burdens on domestic energy producers. This oil and gas targeted improvements package is expected to save up to approximately $484 million in regulatory costs from 2019 – 2025 or $75 million annually.

“These common-sense reforms will alleviate unnecessary and duplicative red tape and give the energy sector the regulatory certainty it needs to continue providing affordable and reliable energy to the American people,” said EPA Acting Administrator Andrew Wheeler. “Removing these excessive regulatory burdens will generate roughly $484 million in cost savings and support increased domestic energy production – a top priority of President Trump.”

The proposed improvements include: aligning requirements between EPA's rule and existing state programs; modifying the frequency for monitoring leaks (also known as “fugitive emissions”) at well sites and compressor stations; and making it easier for owners and operators to use emerging measurement technologies in their leaks monitoring surveys.

“Today’s technical amendments recognize successful infrastructure already in place in states like Ohio to protect public health and the environment,” said Ohio EPA Director Craig Butler. “EPA’s commonsense proposal supports state leadership through cooperative federalism and removes unnecessary red tape and burdensome duplication that only serve as roadblocks to responsible energy development in Ohio.” 

“America’s oil and natural gas producers understand the importance of fair, commonsense regulations. But, for too long, the federal bureaucracy has buried our industry in unnecessary and often duplicative red-tape,” said Independent Petroleum Association of America President and CEO Barry Russell. “Today’s EPA proposal reverses the growing mistakes of the past. This proposal not only reassures America’s continued path toward global energy leadership, but also continues to protect the environment and communities where energy production is located. It is important for the states to play an important role in decisions that affect their citizens, industries and natural resources. This proposal does just that: it empowers the states to work with the federal government on the best regulatory approaches. IPAA welcomes these proposed changes and is encouraged by these reasonable actions.”

“Western Energy Alliance is pleased that EPA is fixing a rule that was purposefully designed by the Obama Administration to tie up the American oil and natural gas industry in red tape,” said Western Energy Alliance President Kathleen Sgamma. “By fixing the numerous technical problems with the original rule, EPA will enable industry to continue its four-decade success record of reducing methane emissions. This new rule encapsulates the energy dominance agenda that is leading to huge increases in American energy production and jobs with dramatically lower levels of imports from overseas, all while delivering environmental protection.”

The Agency continues to consider other policy issues in the 2016 rule, including the regulation of greenhouse gases in the oil and gas sector, and will be addressed in a separate proposal at a later date.

EPA will take comment on the proposed rule for 60 days after the proposal is published in the Federal Register and will hold a public hearing in Denver, Colo. Details on the public hearing will be available shortly.

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