U.S. Senators Shelley Moore Capito, Kevin Cramer, Markwayne Mullin, Pete Ricketts, and Dan Sullivan have written a letter to Environmental Protection Agency (EPA) Administrator Michael Regan expressing their concerns about the agency's proposed 'subpart W' rule on methane emissions reporting. The senators are urging the EPA to reconsider and revise its proposal.
In the letter, the senators argue that the EPA's proposed revisions to subpart W go against the mandates of the statute and will increase the tax burden on American energy. They state that the proposal would expand the scope of emissions required to be reported and unduly increase the number of facilities that are subject to the methane tax. The senators believe that if the proposal is finalized as proposed, it could artificially overestimate US methane emissions, despite evidence showing that US methane emission intensity is lower than many international competitors.
The senators also raise concerns about the reliance on emission factors in calculating emissions under subpart W. While they acknowledge the option for facilities to use emission factors as a substitute for facility-specific data, they argue that the proposed rule increases emission factors without evidence that this accurately reflects emission totals. Furthermore, they highlight that the statute allows facilities to submit empirical emissions data to fulfill their reporting responsibilities and define their tax liability. The senators argue that the proposed revisions preclude facilities from measuring their methane emissions with advanced monitoring technologies and empirical methods, despite congressional direction to allow the use of empirical data.
Additionally, the senators criticize the proposal for re-categorizing centralized production facilities as non-production systems. They argue that this categorization would inflate liabilities under the methane tax in a manner not directed by Congress.
The senators highlight what they see as a contradiction in the administration's policies. While President Biden has called on the oil and gas industry to increase production, the proposed rule would increase the cost and burden of reporting under subpart W, making it more difficult and expensive to produce, transport, and consume American energy.
In conclusion, the senators urge the EPA to reconsider the proposed rule and make significant revisions. They call for the establishment of a pathway that allows facilities to use demonstrated empirical methods to calculate their liability for the methane tax. They also emphasize the need to correct the re-categorization of centralized production facilities and address the inconsistencies between subpart W and other emission methodologies.
The senators argue that the current proposal, if finalized, would be an ill-advised regulatory policy that increases a tax to be borne by energy producers, manufacturers, and consumers across the economy.
To find out more, go to this link: https://www.epw.senate.gov/public/index.cfm/press-releases-republican?ID=2D73DFC7-5B27-4AE0-AC69-920246B0F009
