Changes made to the final rule published by the U.S. Environmental Protection Agency prompted GPA Midstream to ask the agency to delay implementing updates to greenhouse gas emission regulations.

The final rule aims to update methane emissions reporting requirements for petroleum and natural gas systems under EPA's Greenhouse Gas Reporting Program. GPA's analysis found that several provisions of EPA's final rule are unworkable and should be revised or eliminated. These provisions were additions to the final rule that were not available for public comment or may be the product of EPA misunderstanding information submitted during the public comment period.

One major problem with the agency’s rule is the required installation of flow meters to measure hydrocarbon liquid throughputs. Despite written comments submitted during the public comment period, EPA incorrectly assumed that flow meters were already in place and would have no associated cost of compliance. EPA would mandate installation of costly equipment that GPA analysis shows would not meet measurement accuracy requirements. Achieving such accuracy would necessitate additional equipment and cost.

Other problems identified by GPA’s analysis that require revision or elimination by EPA include:

• The final rule does not meet statutory standards for empirical data.
• The final rule does not account for leak repairs, even when the repairs are required by other EPA regulations.
• EPA’s revision to flare regulations are based on a single, outlier study.
• EPA declines without sufficient explanation to align Subpart W requirements with other applicable EPA rules, including OOOOb and OOOOc.
• EPA’s cost projections nearly doubled — leaping from $92 million in the proposed rule to $183 million in the final rule. The true cost is higher.

GPA is asking EPA for new rulemaking proceedings to address the changes needed, as well as the fact that the rules do not comply with provisions of the Clean Air Act or amendments to the act that passed in the Inflation Reduction Act.

As written, the final rule creates unnecessary burden on the midstream industry. Click here to see details of GPA’s full petition for reconsideration and partial stay of EPA’s Greenhouse Gas Reporting Rule: Revisions and Confidentiality Determination for Petroleum and Natural Gas Systems.