HomeNewsColorado adopts U.S.-leading standard to cut GHG emissions from midstream oil and gas

Colorado adopts U.S.-leading standard to cut GHG emissions from midstream oil and gas

12/27/2024

The Colorado Air Quality Control Commission has adopted a groundbreaking new rule aimed at significantly further reducing greenhouse gas (GHG) emissions from the state’s oil and gas industry. The rule addresses emissions from midstream oil and gas operations. That includes facilities that gather, compress and process natural gas, such as compressor stations and processing plants. The rule is the first-of-its-kind in the nation.

"Every Coloradan deserves to breathe clean air, no matter where they live," said Jill Hunsaker Ryan, the executive director of the Colorado Department of Public Health and Environment. “This new rule will not only cut air pollutants that contribute to ground-level ozone, but also reduce climate-harming greenhouse gas emissions."

“Colorado is proud to take this bold, nation-leading step to address climate change and reduce air pollution,” said Michael Ogletree, the director of the state’s Air Pollution Control Division. “This new rule is another milestone in Colorado’s ambitious goal of achieving net-zero emissions by 2050. We are especially proud that it prioritizes protections for communities disproportionately impacted by pollution.”

Midstream operations are located in 20 counties statewide, with the largest sources of GHG emissions concentrated in Weld, Garfield and Rio Blanco counties. Fuel combustion equipment at these operations release carbon dioxide (CO2) and methane emissions, which are major contributors to climate change.

New emissions limits and compliance requirements. The new rule addresses GHG emissions from midstream fuel combustion equipment such as engines, turbines and heaters. The rule builds upon action Colorado took in 2021 to reduce emissions from midstream operations under Colorado Air Quality Regulation 7, II.H.

Under the new rule, midstream facilities must begin taking steps to reduce GHG emissions from combustion fuel equipment by Feb. 14, 2025. Then, midstream facilities have a 2030 deadline to meet GHG emissions limits for both the overall sector and their own company. Companies must also maintain these reduced emissions levels each year thereafter and meet additional emissions reduction targets beyond 2030.

To support compliance with the new rule, the CDPHE Air Pollution Control Division will offer guidance and resources for onsite emissions reduction projects. These measures will help the industry transition smoothly to achieve the new standards, and may facilitate faster emissions reductions than required by statute. The division can take enforcement actions against companies that do not comply with the new rule and is committed to ensuring the state meets its emissions reduction targets.

Public health benefits and increased protections for disproportionately impacted communities. The rule aligns with the state’s Greenhouse Gas Pollution Reduction Roadmap and the Colorado Environmental Justice Act. State law mandates a 20% reduction of statewide emissions from the industrial and manufacturing sector by 2030, compared to 2015 levels.

By 2030, the new rule will reduce GHG emissions by more than 1 metric MMtpy of CO2e compared to 2015 levels–equivalent to removing 240,571 gasoline-powered passenger vehicles from the road annually.

The new rule requires midstream facilities that operate in disproportionately impacted communities to prioritize onsite GHG emissions reductions. Many of these operations are large midstream facilities located in Colorado’s Front Range. This requirement further protects disproportionately impacted communities because reducing greenhouse gas emissions onsite can also reduce other air pollutants that can impact public health.

This includes air pollutant reductions in nitrogen oxide (NOx), carbon monoxide (CO), volatile organic compounds (VOCs) and hazardous air pollutants. Protections for communities disproportionately impacted by pollution were informed by community feedback throughout the rulemaking.

Future reports and ongoing actions. Starting in October 2025, the division will publish an annual report on midstream emissions to track the state’s progress toward the 2030 reduction goal and additional information. The division intends to host a public information session following release of the first report to share updates and answer questions.

Colorado remains a leader in addressing climate change and will continue to prioritize reducing GHG and other air pollution to benefit all Coloradans. The new rulemaking is one of several steps the state is taking to reduce statewide greenhouse gas emissions.

Recent actions include:

  • Phase one and phase two of the greenhouse gas emissions and energy management for manufacturing rules, adopted in 2021 and 2023.
  • The Colorado clean cars and advanced clean trucks rules, adopted in 2023.
  • The building performance standards rule, adopted in 2023.
  • The greenhouse gas intensity verification rule, adopted in 2023.
  • The recovered methane rule, adopted in 2022 and launched in 2023.

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