G8 Environmental Futures Forum 2000

Detailed Description of Best Practices
United States of America No.16

I. Title of the Best Practice

Industries of the Future

II. Overview of the Best Practice

A. General Description
The methane programs are a set of U.S. Government programs designed to remove market barriers and encourage the profitable recovery of methane gas currently emitted to the atmosphere. Numerous industrial and agricultural practices emit methane. In many cases, technologies are readily available to collect and use the wasted methane, and they are frequently profitable given the market value of the collected methane as fuel. A number of informational, financial and market barriers increase costs for the individual entities responsible for the methane emissions, however, and have precluded the full deployment of these options.

Four major sectors are targeted by the U.S. methane programs: landfills, coal mines, natural gas systems, and agriculture. In each sector, unique programs that address the specific barriers have been implemented in order to encourage the widespread deployment of profitable methane recovery and use technologies.

Landfills: The major barriers to increased methane recovery at landfills include informational issues related to site potential, permitting issues, financing issues, and difficulties in finding energy customers. EPA has taken two actions to address landfill methane emissions. First, the largest US landfills are subject to a regulation under the Clean Air Act which requires them to collect and combust their landfill gas in order to reduce emissions of ozone precursors. Second, EPA has implemented a voluntary program B the Landfill Methane Outreach Program (LMOP) B to encourage project development at US landfills not affected by the Landfill Rule and encourage energy recovery projects at those landfills that are affected by the Rule. The LMOP works with landfills, utilities, state agencies, and landfill service companies to address the barriers to energy projects at landfills and create partnerships that can lead to project development. The program publishes technical information on candidate projects and common technical challenges in project development, as well as organizing state workshops to facilitate state policies that favor landfill gas development. The program also works directly with candidate landfill sites to educate them about project potential and help them find project developers.

Coal Mines: Key barriers to methane utilization at coal mines include informational, financial, and market barriers. Coal mines release large quantities of methane to the atmosphere through the ventilation and degasification systems required to mine coal safely. Limited gas recovery has occurred historically, however, because of mines do not view methane as a recoverable resource, lack information about project potential, have difficulty finding project partners, and prefer to invest capital in coal production. EPA's Coalbed Methane Outreach Program works directly with coal mines to assist them identifying attractive projects and finding partners. The program is also working to demonstrate new and innovative uses for the methane released by mining, including the use of ventilation air and the flaring of unusable degasification system methane.

Natural Gas Systems: EPA's Natural Gas STAR program works with natural gas producers, processors, and transmission and distribution companies to reduce the leaks and losses of natural gas that occur throughout the system. The program has identified a set of core Best Management Practices that companies evaluate for their systems, as well as more than 50 Partner Reported Opportunities (additional technical options for reducing methane emissions). The program provides technical information, economic analyses, and public recognition for the methane reduction efforts of the gas industry.

Agriculture: EPA and the U.S. Department of Agriculture work jointly with the agriculture sector to reduce methane emissions from manure management systems through the AgSTAR program and from the enteric fermentation of livestock through the Ruminant Livestock Efficiency Program. The AgSTAR program overcomes informational and technical barriers to methane recovery from manure systems by providing information and assistance to livestock producers. The Ruminant program focuses primarily on the beef industry and promotes a variety of efficiency improvements in grazing management, feeding practices, and animal management that can simultaneously improve animal health and productivity and reduce methane emissions per unit of product.

B. Special Characteristics of the Best Practice
Currently there are more than 275 landfill gas utilization projects in the United States, which is more than double the number in 1994, when EPA's landfill program was launched.

Almost half of the new landfill gas to energy projects in the US since 1994 have been developed at landfills that are not regulated under the Landfill Rule. An assessment of projects attributable to the efforts of the Landfill program indicates that emissions have been reduced by almost 4 MMTCE since the program started.

Since initiating the Coalbed Methane Outreach Program, utilization of coal mine methane in the United States has tripled. Since 1995, the program has reduced emissions by over 8 MMTCE.

Currently more than 70 natural gas companies belong to the Natural Gas STAR program, representing almost 40 percent of U.S. gas production, 70 percent of transmission pipeline, and 45 percent of distribution service connections. The program has reduced emissions by 8 MMTCE since 1990.

Together the agriculture programs have reduced methane emissions by a small amount since 1993. Significant emissions reductions are anticipated through 2010 as the potential for these approaches are more fully adopted by the livestock industry.

C. Reasons for Inclusion as a Best Practice
Reduced U.S. methane emissions by over 20 MMTCE since 1990, and are projected to reduce emissions by more than 11 MMTCE in the year 2000 alone. As a result, U.S. methane emissions are expected to remain stable at 1990 levels in 2000. In addition, the U.S. methane programs are expected to offset future growth and result in stabilized methane emissions at 1990 levels through 2010, at a profit.

Result in other environmental benefits. The methane programs have additional benefits beyond those associated with reducing greenhouse gas emissions. Use of wasted methane displaces fossil fuel consumption. Combustion of landfill gas reduces emissions of other non-methane volatile organic compounds (V.C.) that contribute to tropospheric ozone formation, as well as reducing odor and gas migration problems at landfills. Methane recovery from manure management can improve the quality of the manure management system, thereby reducing odor and water quality problems associated with animal waste. And methane recovery at coal mines can improve mine safety by reducing explosive hazards.

Have a substantial economic impact. Several hundred million dollars in methane recovery investments have been leveraged from the private sector by the program, for a small federal financial outlay. Comparison of the Federal investment against the resultant environmental benefits indicates that the cost of the reductions is substantially lower than US$1/ton CO2.

Approaches are being applied throughout the United States and could serve as a model for other countries. Within the U.S., care has been taken to identify uniquely regional barriers to methane recovery projects where they exist and ensure that appropriate programmatic responses are developed. Each program is customized to the specific needs of its industry. In addition, the barriers to methane recovery projects are reassessed annually, so that any necessary modifications in program strategy can be promptly identified and implemented. In this way, the programs continue to provide state-of-the-art information to their industrial partners.

III. Categorizing the Best Practice

1. Classification(s) (Indicate main classification(s) only.)
( X ) Regulatory Approach (Policy approaches-- regulations, incentives, etc.)
( ) Practical Action (Action undertaken independently by a social actor)
( X ) Social Network Mechanism (Cooperative structure)

2. Social Actor(s) Involved (Indicate main social actor(s) only.)
( ) Citizens
( X ) Central government
( X ) Local government
( X ) Business

3. Sector(s) (Indicate main sector(s) only.)
( X ) Energy
( ) Household
( ) Transportation
( X ) Industrial Enterprises
( ) Other (Non-Industrial) Business
( X ) Agriculture/ Land Use/ Forestry
( ) Other (Please specify.)

4. Target Greenhouse Gas(es)
( ) CO2
( X ) CH4
( ) N2O
( ) HFC
( ) PFC
( ) SF6
( ) Other (Please specify.)

IV. List of References

http://www.epa.gov/methane

V. Please indicate a person to contact for more information about this Best Practice.

Contact Person: Dina Kruger
Title: Chief, Methane Energy Branch
Organization: U.S. Environmental Protection Agency
Email: kruger.dina@epa.gov
Tel: 202-564-9039
Fax: 202-565-2077
Address: 401 M Street SW (6202J), Washington, DC 20460 USA

Detailed Description of Best Practices - USA No.16

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