EPA Methane Rules: Draft Proposal Seeks to Trim Compliance Costs for Energy Firms

The Environmental Protection Agency is proposing to cut key provisions of the 2023 methane regulations targeting oil and gas operations. The draft rules aim to lower production costs for the sector, a priority for the current administration as it seeks to stimulate domestic drilling.

President Donald Trump announced the revision on Tuesday during a campaign stop in Lubbock, Texas. He cited the Clean Air Act as the authority for the change and projected that the adjustments would save the industry billions of dollars. The timing coincides with rising political pressure on Republicans regarding high gas prices ahead of the midterm elections.

The 2023 rules were finalized under the previous administration to limit methane pollution from drilling sites. Methane is estimated to be 80 times more potent than carbon dioxide at warming the planet over a twenty-year period. The new proposal targets specific compliance mechanisms that the industry previously opposed.

Dustin Meyer, vice president of the American Petroleum Institute, welcomed the draft. In a statement, he said the group looks forward to working with the administration on a more workable approach that supports American energy production and provides greater regulatory certainty. EPA Administrator Lee Zeldin described the move as support for the workforce, stating that the Biden EPA had destructively targeted the sector.

Environmental groups contend the rollback may increase financial waste. Jon Goldstein, an associate vice president at the Environmental Defense Fund, noted that methane is the main component of natural gas. He argued that capturing the gas rather than letting it leak or flare allows companies to sell more product, which offsets many compliance costs. He added that wasted gas also deprives taxpayers of royalty and tax revenue.

The proposal would eliminate the Methane Super Emitter Program, which is scheduled to take effect in January 2027. This program would have allowed the government to use certified third parties, including private and nonprofit satellite operators, to monitor large leaks at pipelines and refineries. Paasha Mahdavi, a political science professor at UC Santa Barbara, said removing this tool will make it harder for authorities to spot major leaks, noting that the gas is invisible and difficult to detect without external help.

The agency will also relax rules for low-volume marginal oil wells. Goldstein said satellites show these older wells are responsible for the lion's share of methane pollution from the production sector. The EPA plans to hold a public comment period of at least 45 days, including a public hearing, once the changes are published in the Federal Register.