Have you ever been in a situation where you want someone to make you do something that you already want to do? Yeah, me neither.
EPA Administrator Lee Zeldin is on a roll when it comes to reducing overregulation that stymies economic growth without providing tangible environmental benefits. The comment period closes today for the proposed rule to remove Greenhouse Gas (GHG) reporting requirements for all industry segments except the oil and natural gas industry. If finalized as proposed, it would suspend reporting for oil and natural gas until 2034.
Along with the recent proposal to overturn the Endangerment Finding and vehicle GHG emissions standards, EPA is on track to stop the climate change jugernaut that aims to prevent the production and use of oil and natural gas. One would think, logically, that the industry would be all in, but one would be wrong. Several trade associations and companies are calling for continued reporting using flawed reasoning, in my opinion.
They seek to use federal regulation to gain market share, claim certain tax credits, and show foreign purchasers that U.S. natural gas has a clean profile. And, frankly, they fear retribution from activist shareholders and potential future administrations with the same climate crisis zeal as the Biden Administration’s.
Might I suggest to those wishing to report to instead do so voluntarily? They could publish emissions in their ESG reports to shareholders or they could band together and develop a voluntary third-party reporting mechanism. Voluntary efforts would show future administrations, foreign buyers, and shareholders that they’re committed to reducing GHGs, thereby currying the favor they so desire. For a full review of the legal and factual reasoning to support the proposed rule, including the free speech case, please see my full comments.
