EPA Proposes to Require Petroleum and Natural Gas Facilities To Report GHG Emissions

On March 22, 2010, EPA signed a proposed rulemaking that would require petroleum and natural gas facilities emitting 25,000 metric tons of carbon dioxide equivalent or more to report GHG emissions including methane, carbon dioxide and nitrous oxide. The proposed rule amends the GHG Mandatory Reporting Rule that was issued on October 30, 2009, which excluded the petroleum and natural gas facilities from the reporting requirements pending further study.

The proposed rule will apply to onshore petroleum and natural gas production, offshore petroleum and natural gas production, onshore natural gas processing, natural gas transmission, underground natural gas storage, liquefied natural gas storage, liquefied natural gas import and export facilities and natural gas distribution facilities. Because the rule only requires facilities emitting 25,000 metric tons or more to report its emissions, it is not anticipated that the rule will impact small businesses.

Although the proposed rule requires reporting from petroleum and natural gas facilities, it does not require control of GHGs. However, EPA Administrator Lisa P. Jackson sees this as a first step toward reducing GHGs from these industries by understanding where EPA must act to control GHG emissions.