California Oil and Gas Sector Methane Emissions Regulation

California’s methane regulations are designed to reduce methane emissions from oil and gas production, processing, storage, and transmission compressor stations. The regulation requires oil and gas producers to address both fugitive and vented emissions of methane from new and existing oil and gas facilities through emission control plans, leak testing, and repairs. California takes a unique approach by incentivizing utilities to reduce methane leaks, forcing them to absorb the value of gas they emit into the air, and in the process tying its utility rates to reducing methane emissions from natural gas use.