Overnight Energy: EPA rolls out broad new methane rule

OBAMA TAKES AIM AT METHANE: The Obama administration on Thursday finalized a rule designed to cut methane emissions from the oil and natural gas sector, pushing a stronger standard than one proposed last summer.

The Environmental Protection Agency’s (EPA) rule sets standards for methane leaks along the natural gas production line, including drilling and pumping, at new or modified wells.

{mosads}The agency also said it is kicking off work on a rule for methane leaks at existing wells, but acknowledged that won’t come until after President Obama has left office.

Thursday’s rule is the EPA’s first step toward an administration goal of cutting U.S. methane pollution by 40 percent to 45 percent from 2012 levels by 2025.

“The common-sense steps we are rolling out today will help combat climate change and reduce air pollution that will immediately help improve public health,” EPA Administrator Gina McCarthy said on Thursday.

Drillers have resisted the rule, saying they are best positioned to reduce emissions on their own.

But Obama has looked to slash emissions through regulations, making it a key plank of his overall climate change agenda.

President Obama pledged in last year’s Paris climate agreement to cut greenhouse gas emissions by up to 28 percent by 2025, and he and Canadian Prime Minister Justin Trudeau this spring agreed to work together on reducing methane.

Read more here.

WHAT THE DRILLERS SAY…: The oil and gas industry says the rules could have the effect of increasing greenhouse gas emissions, the exact opposite of their purpose.

The American Petroleum Institute says that the EPA’s rules will make natural gas production more expensive, making it a less attractive substitute for other fuels like coal.

“Methane regulation under this rule is bad for consumers and not necessarily good for the environment either,” Howard Feldman, senior director for regulatory affairs at the API, told reporters Thursday after the EPA unveiled the final version of its regulation.

“It doesn’t make sense that the administration would add unreasonable and overly burdensome regulations when the industry is already leading the way in reducing emissions,” said Kyle Isakower, the group’s vice president of regulatory policy.

Read more here.

WHAT THE GREENS SAY…: Environmentalists were broadly pleased with the announcement on Thursday.

But they said the rules should be a precursor to further action on oil and gas section methane leaks, especially from existing oil and gas wells.

Agency officials did kick off the process of writing rules for existing drillers, which account for up to 10 million tons of methane emissions each year. But they acknowledged it will take a long time to collect the information necessary to do so, meaning the rule won’t come out until after Obama leaves office next year.

“This is the biggest part of the problem,” said Jeremy Symons, the Associate Vice President for Climate Political Affairs at the Environmental Defense Fund, of existing drillers. “The job isn’t done and more needs to be done in the months and years ahead.”

Andres Restrepo, a lawyer for the Sierra Club, said the EPA has a legal obligation to write existing well regulations after it implements the new well rules.

“It’s important to understand that today’s action is critical but it’s part of a larger legal structure that covers the entire suite of sources, both new and existing in the oil and gas industry,” he said

Read more here.

SENATE APPROVES ENERGY AND WATER SPENDING BILL: The Senate on Thursday passed a $37.5 billion package to fund energy and water programs in 2017.

Senators approved the bill in a 90-8 vote after weeks of work that included a protracted fight over an amendment related to Iran.

With Thursday’s vote, the energy and water funding becomes the first 2017 appropriations measure approved this year.

The vote came after the upper chamber dispensed with Sen. Tom Cotton’s (R-Ark.) amendment to block American purchases of Iranian heavy water, a component of some nuclear reactors.

Democrats had objected to even the thought of including the amendment in the bill, and blocked three earlier attempts to end debate on it.

But members rejected the Iran amendment in a separate floor vote on Thursday, clearing the way for today’s final passage.

Read more here.

BLANKENSHIP TO PRISON: Convicted coal boss Don Blankenship is due to report to prison Thursday for his year-long sentence for conspiring to break federal mine safety and health rules.

The Court of Appeals for the Fourth Circuit denied Blankenship’s last-minute plea Thursday morning to remain free while he appeals his conviction, in a brief unanimous order.

Blankenship will serve out his sentence in a California prison, likely chosen due to its proximity to a home he owns in Nevada.

He was convicted late last year on the conspiracy charge, which stemmed from a years-long investigation into the 2010 Upper Big Branch mine disaster, which killed 29 miners after an underground explosion.

His legal team has appealed the conviction, arguing that the judge in the case made a number of errors, like refusing to throw out charges or allow cross-examination of a witness.

ON TAP FRIDAY: The Department of Energy will host a workshop on “new opportunities and challenges in U.S. energy security.”

AROUND THE WEB:

An Omaha man is suing the University of Nebraska in an attempt to stop balloon releases during football games, which he says violate federal waste laws, the Lincoln Star Journal reports.

The U.S. attorney for Minnesota has charged a German ship owner with dumping polluted water into the Great Lakes, Minnesota Public Radio reports.

Thirty state lawmakers in Hawaii are asking President Obama to reject calls to expand a massive marine national monument near the islands, Honolulu Civil beat reports.

IN CASE YOU MISSED IT:

Check out Thursday’s stories…

-Greens: Methane rules on existing drilling rigs should come next
-Senate passes $37.5B energy and water bill after ending Iran fight
–Oil lobby: Methane rules could increase emissions
-House panel votes to delay new ozone rules
-EPA finalizes stronger methane emission rules
-EPA to unveil oil, gas methane restrictions

Please send tips and comments to Timothy Cama, tcama@digital-release.thehill.com; and Devin Henry, dhenry@digital-release.thehill.com. Follow us on Twitter: @Timothy_Cama, @dhenry, @thehill