[House Hearing, 117 Congress]
[From the U.S. Government Publishing Office]


                         STATE PERSPECTIVES ON
                       CUTTING METHANE POLLUTION

=======================================================================

                                HEARING

                               BEFORE THE

                        SELECT COMMITTEE ON THE 
                             CLIMATE CRISIS
                        HOUSE OF REPRESENTATIVES

                    ONE HUNDRED SEVENTEENTH CONGRESS

                             SECOND SESSION

                               __________

                              HEARING HELD
                             JUNE 14, 2022

                               __________

                           Serial No. 117-19
                           
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]                           

                            www.govinfo.gov
   Printed for the use of the Select Committee on the Climate Crisis
   
                                __________

                    U.S. GOVERNMENT PUBLISHING OFFICE                    
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                 SELECT COMMITTEE ON THE CLIMATE CRISIS
                 
                    One Hundred Seventeenth Congress

                      KATHY CASTOR, Florida, Chair
SUZANNE BONAMICI, Oregon             GARRET GRAVES, Louisiana,
JULIA BROWNLEY, California             Ranking Member
JARED HUFFMAN, California            GARY PALMER, Alabama
A. DONALD McEACHIN, Virginia         BUDDY CARTER, Georgia
MIKE LEVIN, California               CAROL MILLER, West Virginia
SEAN CASTEN, Illinois                KELLY ARMSTRONG, North Dakota
JOE NEGUSE, Colorado                 DAN CRENSHAW, Texas
VERONICA ESCOBAR, Texas              ANTHONY GONZALEZ, Ohio
                                 ------                                
                Ana Unruh Cohen, Majority Staff Director
                Sarah Jorgenson, Minority Staff Director
                        climatecrisis.house.gov
                            
                            C O N T E N T S

                              ----------                              

                   STATEMENTS OF MEMBERS OF CONGRESS

                                                                   Page
Hon. Kathy Castor, a Representative in Congress from the State of 
  Florida, and Chair, Select Committee on the Climate Crisis:
    Opening Statement............................................     1
    Prepared Statement...........................................     3
Hon. Garret Graves, a Representative in Congress from the State 
  of Louisiana, and Ranking Member, Select Committee on the 
  Climate Crisis:
    Opening Statement............................................     4

                               WITNESSES

The Honorable Michelle Lujan Grisham, Governor, State of New 
  Mexico
    Oral Statement...............................................     6
    Prepared Statement...........................................     8
The Honorable Mark Gordon, Governor, State of Wyoming
    Oral Statement...............................................    11
    Prepared Statement...........................................    13

                       SUBMISSIONS FOR THE RECORD

An August 3, 2021 letter from the New Mexico Delegation to the 
  EPA, submitted for the record by Ms. Castor....................    37
A September 22, 2021 letter from the Colorado Delegation to the 
  EPA, submitted for the record by Ms. Castor....................    37
Article from the journal Environmental Research Letters, 
  ``Existing fossil fuel extraction would warm the world beyond 
  1.5  deg.C,'' submitted for the record by Mr. Huffman..........    37
Report from the International Energy Agency, Net Zero by 2050: A 
  Roadmap for the Global Energy Sector, submitted for the record 
  by Mr. Huffman.................................................    37

                                APPENDIX

Questions for the Record from Hon. Kathy Castor to Hon. Michelle 
  Lujan Grisham..................................................    38

 
                         STATE PERSPECTIVES ON
                       CUTTING METHANE POLLUTION

                              ----------                              


                         TUESDAY, JUNE 14, 2022

                          House of Representatives,
                    Select Committee on the Climate Crisis,
                                                    Washington, DC.

    The committee met, pursuant to call, at 1:04 p.m., in Room 
1334, Longworth House Office Building, Hon. Kathy Castor 
[chairwoman of the committee] presiding.
    Present: Representatives Castor, Bonamici, Brownley, 
Huffman, McEachin, Escobar, Graves, Palmer, Carter, Miller, and 
Crenshaw.
    Ms. Castor. The committee will come to order.
    Welcome to the Select Committee on the Climate Crisis 
hearing on ``State Perspectives on Cutting Methane Pollution.''
    Without objection, the Chair is authorized to declare a 
recess of the committee at any time.
    And as a reminder, members participating in a hearing 
remotely should be visible on the camera throughout the 
hearing.
    For members participating in person, masks are optional.
    As with in-person meetings, members are responsible for 
controlling their own microphones. Members can be muted by 
staff only to avoid inadvertent background noise.
    And as a reminder, statements, documents, or motions must 
be sub- 
mitted to the electronic repository, to [email protected]
se.gov.
    Finally, members or witnesses experiencing technical 
problems should inform the committee staff immediately.
    Well, good afternoon, everyone, and thank you for joining 
this hybrid hearing.
    Before we begin, we are all deeply saddened by the loss of 
our dear colleague Representative Sean Casten's daughter Gwen 
yesterday. So I would like to ask for a moment of prayer or 
silent reflection to lift up Representative Casten and his 
family.
    [Moment of silence.]
    Ms. Castor. Thank you.
    So in the hearing today we will examine state perspectives 
on cutting harmful methane pollution from oil and gas 
infrastructure and how Federal standards, policies, and 
investments can complement state initiatives.
    I will now recognize myself for 5 minutes for an opening 
statement.
    We are so excited today to have two distinguished guests 
for this important hearing. We are going to learn directly from 
Governor Michelle Lujan Grisham, one of our former colleagues, 
the Governor of New Mexico, and Governor Mark Gordon of 
Wyoming.
    Thank you both for being here to share your unique 
perspectives on climate solutions.
    We often focus on carbon dioxide as the main driver of the 
climate crisis, but it is also critical that we address 
methane, the second-largest source of heat-trapping pollution. 
Methane is a potent greenhouse gas and is responsible for about 
30 percent of global warming in the modern era. And while it 
leaves the atmosphere faster than CO2, it traps 87 
times as much heat while it lingers.
    Last year, the Intergovernmental Panel on Climate Change 
urged us to work to reduce this super-pollutant. And while the 
Biden administration, Congress, and many states have adopted 
policies to reduce methane pollution and energy waste, methane 
levels have jumped dramatically over the last decade and 
emissions remain at the highest levels on record.
    Fortunately, there are cost-effective ways to dramatically 
reduce methane pollution from the oil and gas sector, which 
remains the largest industrial methane source in the United 
States.
    Fossil fuels were responsible for approximately 80 percent 
of the increase in methane emissions between 2006 and 2017 
across North America, according to an analysis from NASA and 
Stanford, and methane can escape at nearly every stage during 
the production, transmission, and distribution of oil and gas.
    And all of these leaks add up. Producers could have sold an 
additional 180 billion cubic meters of natural gas, the 
equivalent of the entire European market, if all leaks from 
global fossil fuel operations had been captured last year, 
according to the International Energy Agency.
    And according to a separate analysis by the IEA, the oil 
and gas industry could slash its methane emissions in half at 
no net cost just by deploying existing technologies.
    So taking these actions has broad support. Last year, we 
voted to require companies to regularly find and repair methane 
leaks. Major oil and gas companies supported the measure--but 
only 12 House Republicans voted for it, unfortunately.
    Our friends across the aisle often call for expanding 
production of natural gas as a solution to the climate crisis. 
But unless harmful methane pollution is addressed, the climate 
impacts of gas can be worse than the coal it may replace.
    Plugging methane leaks is low-hanging fruit, and it is good 
for producers' bottom line as well. And because of Putin's 
invasion of Ukraine, it is now a security imperative. Capturing 
wasted methane could meet more than half of President Biden's 
LNG commitment to Europe.
    Stopping energy waste will help both everyday Americans and 
our allies abroad. It will also support good-paying jobs here 
in America. Those jobs include plugging and remediating 
abandoned wells, expanding leak detection and repair, and 
increasing maintenance and inspections.
    According to the BlueGreen Alliance, unleashing this 
potential could create 50,000-plus jobs over the decade. 
Repairing and replacing leaking natural gas distribution lines 
could create 300,000 more jobs.
    That win-win scenario is one of the reasons we invested 
$4.7 billion to help states and Tribes plug and remediate 
abandoned oil and gas wells in the Bipartisan Infrastructure 
Law.
    We also invested more for abandoned mine reclamation, for 
natural gas pipeline modernization, and to mitigate the 
environmental risks of undocumented orphan wells.
    We are excited about the progress at the state level, 
Governors.
    New Mexico now requires regular and frequent leak detection 
and repair, and a new measure will help eliminate routine 
venting and flaring across that state.
    And in Wyoming, state officials stepped up after the Trump 
administration weakened Federal methane safeguards. They 
created state-level emissions limits and required leak 
detection and repair on new and modified sources.
    But there is so much more to be done--and quickly--as the 
costly impacts of the climate crisis continue to grow and the 
window to act to avoid the worst impacts is rapidly closing.
    We need robust Federal rules to find and repair leaks from 
both new and existing sources, including marginal wells, and we 
need to end routine venting and flaring, which wastes energy 
and harms the public health.
    So we are looking forward to a robust discussion today.
    At this time, I will recognize the Ranking Member, Mr. 
Graves, for a 5-minute opening statement.
    [The statement of Ms. Castor follows:]

                Opening Statement of Chair Kathy Castor

     Hearing on ``State Perspectives on Cutting Methane Pollution''

                             June 14, 2022

                        As prepared for delivery

    I'm excited to recognize our two distinguished guests for this 
important hearing so we can learn from them: Governor Michelle Lujan 
Grisham, of New Mexico, and Governor Mark Gordon, of Wyoming. Thank you 
for being here to share your unique perspectives on climate solutions.
    We often focus on carbon dioxide as the main driver of the climate 
crisis. But it's also critical that we address methane, the second-
largest source of heat-trapping pollution. Methane is a potent 
greenhouse gas and is responsible for about 30% of global warming in 
the modern era. And while it leaves the atmosphere faster than 
CO2, it traps 87 times as much heat while it lingers. Last 
year, the Intergovernmental Panel on Climate Change urged us to work to 
reduce this super-pollutant. And while the Biden administration, 
Congress, and many states have adopted policies to reduce methane 
pollution and energy waste, methane levels have jumped dramatically 
over the past decade and emissions remain at the highest levels on 
record.
    Fortunately, there are cost-effective ways to dramatically reduce 
methane pollution from the oil and natural gas sector, which remains 
the largest industrial methane source in the United States. Fossil 
fuels were responsible for approximately 80% of the increase in methane 
emissions between 2006 and 2017 across North America, according to 
analysis from NASA and Stanford. And methane can escape at nearly every 
stage during the production, transmission, and distribution of oil and 
gas. These leaks add up. Producers could have sold an additional 180 
billion cubic meters of natural gas--the equivalent of the entire 
European gas market--if all leaks from global fossil fuel operations 
had been captured last year, according to the International Energy 
Agency. And according to a separate IEA analysis, the oil and gas 
industry could slash its methane emissions in half at no net cost just 
by deploying existing technologies.
    Taking these actions has broad support. Last year, we voted to 
require companies to regularly find and repair methane leaks. Major oil 
and gas companies supported the measure, but only 12 House Republicans 
voted for it. Our friends across the aisle often call for expanding 
production of natural gas as a solution to the climate crisis, but 
unless harmful methane pollution is addressed, the climate impacts of 
gas can be worse than the coal it may replace.
    Plugging methane leaks is low-hanging fruit and it is good for 
producers' bottom line. And because of Putin's invasion of Ukraine, 
it's now a security imperative as well. Capturing wasted methane could 
meet more than half of President Biden's LNG commitment to Europe. 
Stopping energy waste will help both everyday Americans and our allies 
abroad. It will also support good-paying jobs across America. Those 
jobs include plugging and remediating abandoned wells, expanding leak 
detection and repair, and increasing maintenance and inspections. 
According to BlueGreen Alliance, unleashing this potential could create 
50,000-plus jobs over a decade. Repairing and replacing leaky natural 
gas distribution pipelines could create 300,000 more.
    That ``win-win'' scenario is one of the reasons we invested $4.7 
billion to help states and tribes plug and remediate abandoned oil and 
gas wells in the Bipartisan Infrastructure Law. We also invested more 
for abandoned mine land reclamation, for natural gas pipeline 
modernization, and to mitigate the environmental risks of undocumented 
orphaned wells.
    We're also excited about progress at the state level. New Mexico 
now requires regular and frequent leak detection and repair, and a new 
measure will help eliminate routine venting and flaring across the 
state. And in Wyoming, state officials stepped up after the Trump 
administration weakened federal methane safeguards, creating state-
level emissions limits and requiring leak detection and repair on new 
and modified sources.
    But there is so much more to be done--and quickly--as the costly 
impacts of the climate crisis continue to grow and the window to act to 
avoid the worst impacts is rapidly closing. We need robust federal 
rules to find and repair leaks from both new and existing sources, 
including marginal wells. And we need to end routine venting and 
flaring, which wastes energy and harms public health.
    I look forward to today's discussion.

    Mr. Graves. Thank you, Madam Chair.
    Governors, thank you for being here.
    Governor Grisham, great to see you again.
    The Chair made a really important point. Methane emissions 
is actually an energy source. Methane is something that can be 
captured and sold. And I think one of the important things to 
keep in mind is that the more that we can do to capture this, 
it really aligns the incentives for energy producers.
    Let me say that again. If you can capture methane, there is 
actually an energy market for it, and so incentives are 
aligned.
    One of the problems with methane capture has been the 
ability to actually build infrastructure to be able to get this 
product to market, things like pipelines in some cases that 
have been prohibited or banned as we move forward. The Chair 
noted that there have been Republicans that voted against 
methane regulations in the United States.
    And let's put all this in perspective, and I think it is 
one of the greatest areas where we don't see eye to eye.
    Coal production, for example, in China, it has about a 33 
percent greater emissions profile than U.S. coal. We can sit 
here and say, well, we want to stop and ban all U.S. coal.
    Well, the reality is that our Governors today that are here 
both have significant coal reserves. They produce it cleaner 
than anywhere else. As long as there is global demand, why not 
produce it in areas where we have lower emissions and we can do 
it cleaner?
    Do I fully agree that we need to be moving in a direction 
of lower emissions and cleaner energy solutions? Absolutely. 
But we can't be irrational to what is happening with global 
markets.
    Something we talked about at the last hearing, and I think 
it is important to bring up right now, U.S. natural gas 
compared to Russian gas. We were fighting the administration's 
efforts to become more dependent upon Russian energy.
    Unfortunately, we failed there. But, for example, Russian 
gas has about a 41 percent higher emissions profile in Europe 
than U.S. gas.
    And so we can sit here and continue and try and deploy 
these strategies that think that everything is going to be 
powered by renewable energy technologies overnight; or we can 
be rational and actually base our energy strategy on the 
predictions of the Biden administration that show that natural 
gas demand for developing countries is going to increase 44 to 
80 percent over the next 30 years.
    We can be rational and recognize that natural gas demand in 
developed countries is going to increase somewhere between 31 
and 58 percent over the next 30 years while we continue to work 
toward deploying renewable energy resources.
    Look, let me be clear. Let me be clear. Continuing to build 
upon the successes of our Governors that are here today in 
deploying methane-reduction strategies that allow for U.S. 
energy to be competitive in global markets is something that we 
should all agree with, that we should all be supporting.
    Something else that we should all be agreeing upon and 
supporting is working on our regulatory structure in the United 
States. Instead of having roughly four different authorities 
that are tied back to methane and regulations, instead let's 
look at a more efficient regulatory strategy that actually 
results in affordable methane capture that allows us to be able 
to get this to market and be able to continue the trajectory 
that the United States has led over the last about 17 years, 
which is leading the world in reducing global emissions.
    Unfortunately, we saw a significant turn last year with the 
Biden administration where emissions went from a decline, an 
average of about 2.5 percent a year, to increasing 6.3 percent 
under the Biden administration in 1 year.
    And, unfortunately, it appears, at least the beginning of 
this year, we continue to be on an upward trajectory. So higher 
emissions, unaffordable energy costs, and greater dependence 
upon foreign sources.
    Look, in closing, I just want to make note, we have watched 
this administration come out and say: hey, we are going to go 
ask for Saudi Arabia, ask for Iran, ask for Venezuela, and in 
some cases just recently even asking China to meet the energy 
demands of the United States.
    We produce it cleaner, we produce it safer in the United 
States than anywhere else in the world.
    We need to be learning from states like Governor Gordon and 
Governor Grisham, we need to be learning from them, learning 
from their efforts to deploy emissions reduction, methane 
capture strategies in their states, and build upon those 
successes across the United States and across the globe.
    We can bring down the cost of energy. We can increase our 
energy security, and we can reduce global emissions by 
employing strategies that actually make sense and meet the 
affordability test.
    Thank you, Madam Chair. Yield back.
    Ms. Castor. Well, next we will introduce our witnesses. We 
do anticipate learning a lot from them today.
    We have the Honorable Michelle Lujan Grisham. She is the 
32nd Governor of the great State of New Mexico, the first 
Democratic Latina to be elected Governor in U.S. history. She 
was elected in 2018, after having previously served here with 
us in the House of Representatives from the First Congressional 
District, served here from 2013 till the time she was elected 
Governor.
    Also, the Honorable Mark Gordon is the 33rd Governor of 
Wyoming, elected in 2018. Governor Gordon previously served as 
the Wyoming State Treasurer beginning in October 2012 until 
January 2019 when he was sworn in as Governor.
    I want to say to both of you, thank you very much for being 
here today. We know that both of your states are struggling 
with costly climate impacts--in New Mexico wildfires, in 
Wyoming floods.
    So we need to learn from you today, and our thoughts are 
with you as you continue to lift up the citizens of your states 
in dealing with those growing catastrophes.
    Without objection, the witnesses' written statements will 
be made part of the record.
    With that, Governor Lujan Grisham, you are now recognized 
for a 5-minute presentation. Welcome.

 STATEMENTS OF THE HONORABLE MICHELLE LUJAN GRISHAM, GOVERNOR, 
  NEW MEXICO; AND THE HONORABLE MARK GORDON, GOVERNOR, WYOMING

       STATEMENT OF THE HONORABLE MICHELLE LUJAN GRISHAM

    Governor Lujan Grisham. Good afternoon, everyone.
    Madam Chairwoman, nice to see you again. Ranking Member 
Graves. It is an honor to be before you and the entire special 
committee on climate. I appreciate the invitation to testify 
before you today.
    As you heard in the introduction, I am currently the very 
proud Governor of New Mexico.
    My goal is to discuss actions that New Mexico has taken to 
address the climate crisis with an emphasis on steps we are 
taking to minimize methane emissions that contribute to the 
global climate change, actions that are nationally leading 
models for Federal agencies and other states.
    Now, as everyone I think on this committee knows, New 
Mexico is a major energy-producing state. We are, in fact, the 
second-largest onshore oil producer, a major natural gas 
producer, a major solar producer, and home to the largest wind 
power plant in North America.
    New Mexico is also strongly committed to addressing the 
climate crisis. And one of my first actions as Governor was to 
set New Mexico on a path toward a greener future, signing an 
executive order directing the state to achieve statewide 
greenhouse gas reductions of at least 45 percent by 2030, 
increase renewable portfolio standards for electric vehicles, 
identify transmission corridors needed to transport renewable 
energy to market, and develop a statewide strategy to reduce 
oil and gas sector methane emissions.
    Now, as a result of this work, we will reduce emissions by 
31 million metric tons by 2030. Additional proposals under our 
development in transportation and infrastructure, power 
generation, agriculture and forestry, among others, will reduce 
emissions by an additional 17 million metric tons.
    Now, while this is tremendous progress, we still need to 
develop strategies to find an additional 16 million metric tons 
of emissions to meet our greenhouse gas reduction obligations, 
which is why public and private innovations are key to 
everyone's success in closing the gap.
    The industrial sector, including oil and gas, is New 
Mexico's largest source of greenhouse gas emissions, 
representing 53 percent of all emissions in the state. New 
Mexico has a long history of oil and gas production and 
recently became the second-highest oil-producing state behind 
Texas.
    The oil and gas industry is both extremely important to New 
Mexico's economy and the state's largest source of climate 
pollution. Reducing natural gas waste from venting, flaring, 
and leaks is critical to meeting our climate targets.
    New Mexico cannot reach its climate goals without tackling 
methane pollution. Given that reality, we have embarked on a 
comprehensive approach to reduce those emissions, which 
resulted in nationally leading regulations.
    In 2021, the state finalized natural gas waste rules 
requiring that 98 percent of produced and transported gas be 
captured by the end of 2026. The rule establishes, first, 
baselines to reduce waste, then requires operators to meet 
those reduction targets. Importantly, the rules prohibit 
routine venting and flaring, with limited exceptions for 
emergencies and safety threats.
    We also enacted a complementary rule that will reduce ozone 
pollution, the co-benefit of methane reductions. It is 
estimated to eliminate up to 426,000 tons of methane emissions 
annually. Now, that is equivalent to the power needed for 1.2 
million homes per year.
    These rules for new and existing sources apply to all 
wells, large or small, and they encourage innovation by the 
industry. They also require, as you heard frequently, detection 
and repair, which is important for fence line communities while 
creating job growth.
    New Mexico's rules create a predictable and fair 
environment for industry that encourages innovation, eliminates 
waste, and removing the most potent emissions from the 
atmosphere and combating climate change. The rules are a model 
for the nation and other states, complementing each other 
without conflicts or gaps.
    Further, these rules are a serious economic driver. There 
are now at least 12 firms in New Mexico who specialize in 
methane mitigation services or equipment manufacturing, and 
this is the sector where we think we will see thousands of new 
New Mexico jobs.
    New Mexico shows what it looks like to be a climate leader 
and a major energy producer while growing and diversifying our 
economy.
    Now, we know our work has impacts beyond our borders, but 
also recognize that we need to do more. We need to look no 
further than this state to see the devastating impacts climate 
change is already having on our state and communities.
    Today, the two largest wildfires in New Mexico history 
continue to burn in our state, more than 70 straight days. The 
Hermits Peak Calf Canyon fire is now the largest burning in the 
United States. It has been burning since April, more than a 
month before the traditional start of fire season. These fires 
have been devastating, forever changing the lives and 
livelihoods of thousands of New Mexicans.
    Sadly, extreme events like this are becoming the norm, and 
it is going to take all of us, across every level of 
government, to reverse these extreme impacts and address the 
climate crisis for ourselves and generations to come.
    I thank you for the opportunity to testify before you today 
and answer questions.
    [The statement of Governor Lujan Grisham follows:]

          Written Statement of Governor Michelle Lujan Grisham

                          State of New Mexico

     Hearing on ``State Perspectives on Cutting Methane Pollution''

                               Before the

           U.S. House Select Committee on the Climate Crisis

                             June 14, 2022

    Good afternoon, Madam Chair and Members of the Committee. Thank you 
for inviting me to testify today. I am Governor Michelle Lujan Grisham 
from the State of New Mexico.
    Today I will speak about New Mexico's actions to address the 
climate crisis. I will discuss a broad range of policy, regulatory, and 
legislative actions we've taken, with emphasis on actions we're taking 
to minimize methane emissions that contribute to global climate change. 
New Mexico's climate actions, especially regarding methane, are 
nationally leading models for federal agencies and other states.
    New Mexico is a major energy-producing state. We are the second-
largest onshore oil producer, a major natural gas producer, and home to 
the largest wind power plant in North America. New Mexico is also 
strongly committed to addressing the climate crisis. Reducing 
greenhouse gas (GHG) emissions and keeping warming to less than or 
equal to 1.5 degrees Celsius is critical to the health and well-being 
of all New Mexicans--and everyone on the planet.
    One of my first major actions as governor was to set New Mexico on 
a path toward a greener future when I signed Executive Order 2019-003 
Addressing Climate Change and Energy Waste Prevention (``Executive 
Order'').\1\ The Executive Order directed the state to join the U.S. 
Climate Alliance and achieve statewide GHG reductions of at least 45% 
by 2030 compared to 2005 levels. It also established an interagency 
Climate Change Task Force and directed actions including:
---------------------------------------------------------------------------
    \1\ Executive Order 2019-003 Addressing Climate Change and Energy 
Waste Prevention https://www.governor.state.nm.us/wp-content/uploads/
2019/01/EO_2019-003.pdf.

      Legislation to increase the New Mexico renewable 
portfolio standard and increase energy efficiency standards for 
electric utilities;
      Adoption of clean car standards;
      Adoption of building energy codes;
      Collaboration with the New Mexico Renewable Energy 
Transmission Authority (RETA) to identify transmission corridors needed 
to transport the state's renewable energy to market; and
      Development of a statewide, enforceable regulatory 
framework to secure reductions in oil and gas sector methane emissions 
and to prevent waste from new and existing sources.

    All the specific policy directives I just mentioned have been 
accomplished and are in the implementation stage. In 2019 I signed the 
Energy Transition Act (ETA), enacting an 80% renewable portfolio 
standard and a 100% zero-carbon standard by 2050 for all electricity 
providers in the state. Importantly, the ETA also provides tens of 
millions of dollars of transition assistance for impacted communities 
and workers affected by the coal-to-clean transition. We also have 
adopted clean car standards and updated our statewide building energy 
codes. RETA completed an electric transmission study in 2020 and 
updated it in 2022,\2\ and last year in a public-private partnership 
with Pattern Energy, brought the 155-mile high-voltage Western Spirit 
transmission line into commercial operation.
---------------------------------------------------------------------------
    \2\ https://nmreta.com/nm-reta-transmission-study/.
---------------------------------------------------------------------------
    In 2020, a study from Colorado State University analyzed New 
Mexico's GHG emissions in detail, giving us the best estimates to date 
of our recent and projected emissions.\3\ In 2018, New Mexico emitted 
approximately 113.6 million metric tons (MMT) of GHG emissions--an 
amount equal to approximately 1.8% of total U.S. GHG emissions (6,457 
MMT). The emissions are generated by the industrial sector (including 
oil and gas) at 53%, transportation sector (14%), electricity 
generation (11%), other industry (7%), agriculture (7%), natural and 
working lands (5%), and commercial and residential users (3%).
---------------------------------------------------------------------------
    \3\ Sharad Bharadwaj, et al., ``New Mexico Greenhouse Gas (GHG) 
Emissions Inventory and Forecast'' (Prepared for the Center for the New 
Energy Economy at Colorado State University by Energy and Environmental 
Economics, Inc., October 27, 2020),
---------------------------------------------------------------------------
https://cnee.colostate.edu/repowering-western-economy.
    Our GHG inventory informed additional policies and investments. In 
a rural state like New Mexico, we know we must take continued action to 
reduce emissions from the transportation industry. We have made quick 
progress deploying additional electric vehicle (EV) charging 
infrastructure statewide, making EV use easier and more accessible. 
Visitors to New Mexico can now pick up a rented EV at the Albuquerque 
Sunport and drive to ski in Taos, explore the Navajo Code Talkers 
Museum in Gallup, or hike in Caballo Lake State Park without worrying 
about running low on charge. In 2021, 69 new charging stations were 
installed across the state, bringing the total to 166 publicly 
available stations with 391 individual charging outlets. Also in 2021, 
NMED designated approximately $7.4 million of Volkswagen settlement 
money for projects to reduce emissions from diesel-fueled vehicles. 
Finally, we will be investing an additional $38 million over the next 
five years into our EV charging infrastructure thanks to the funding 
provided in the Bipartisan Infrastructure Law.
    We did not stop with charging infrastructure investments; we also 
adopted a clean car rule to ensure that low and zero emission vehicles 
are available in New Mexico. Our clean car rule implements California's 
Advanced Clean Cars program beginning July 1, 2022. The regulations 
will reduce emissions of greenhouse gases and ozone- and smog-causing 
pollutants from new passenger cars, trucks, and SUVs starting in model 
year 2026. The clean car rule is projected to eliminate about 130,000 
tons of greenhouse gases and over 1,700 tons of harmful ozone-forming 
air pollution in New Mexico by 2050. All while saving New Mexicans $237 
million in fuel and maintenance costs by 2050.
    We have made solar more affordable and accessible through the 
Community Solar Act, which requires that each project must have a 30% 
carve-out of its capacity reserved for low-income customers and low-
income service organizations. In the first two years of our new Solar 
Market Development Tax Credit, over 2,300 solar projects per year are 
providing more than 16 MWs of energy and have been installed in nearly 
every New Mexico county.
    Our public engagement on climate is ramping up too. We have 
established a Technical Advisory Group of public members to advise our 
climate work and a comprehensive set of equity principles to guide all 
state agencies' climate work.
    The 2021 report from the Climate Change Task Force provides 
additional details about our progress to date.\4\ Our current policies 
will reduce emissions by 31 million metric tons (MMT) of carbon dioxide 
equivalent (CO2e) by 2030. Policies that we have planned 
will reduce emissions by an additional 17.3 MMT of CO2e. 
While this is tremendous progress, we still need to develop policies 
and strategies to find an additional 16.4 MMT CO2e of 
emission reductions to meet our GHG reduction obligations.
---------------------------------------------------------------------------
    \4\ Available at https://www.climateaction.nm.gov/.
---------------------------------------------------------------------------
    The industrial sector, which includes oil and gas production, is 
the largest source of greenhouse gas emissions in New Mexico--
representing approximately 53% of all GHG emissions in the state. A 
substantial portion of those emissions are methane, which the U.S. 
Environmental Protection Agency estimates is 25 times more potent than 
carbon dioxide. However, methane is a short-lived GHG in the 
atmosphere, so reducing methane concentrations now can slow temperature 
rise through midcentury.
    New Mexico has a long oil and gas production history, starting in 
the 1920s. The state's two major basins are the San Juan Basin, which 
is predominantly a natural gas-production region located in the 
northwest section of the state, and the Delaware Basin--which is part 
of the Permian Basin and is an oil-production region in the southeast 
portion of the state with large volumes of associated natural gas.
    Today, the Permian Basin that stretches under southeastern New 
Mexico and into Texas is the largest oil producing area in the United 
States. New Mexico oil production has increased by over 700% in the 
past 10 years, making our state the 2nd highest oil producing state 
behind Texas. These dramatic increases are largely the result of shale 
development through horizontal drilling and hydraulic fracturing. This 
production has resulted in record-high revenues for the state of New 
Mexico, which we've invested in priorities like free college for all 
New Mexicans, expanded access to early childhood education, and raises 
for our educators.
    The oil and gas industry is extremely important to New Mexico's 
economy and is also the state's largest source of climate pollution. 
Reducing natural gas waste from venting, flaring, and leaks, as well as 
ozone precursors is mission-critical to meeting New Mexico's climate 
targets. In short, New Mexico cannot reach its GHG reduction goals 
without tackling methane pollution. Given that reality, we embarked on 
a conscientious and comprehensive approach to reduce those emissions. 
The result was a framework of nationally leading regulations.
    Both the New Mexico Environment Department (NMED) and the Energy, 
Minerals and Natural Resources Department (EMNRD) regulate aspects of 
the oil and gas sector. NMED regulates air pollution under the state 
Air Quality Control Act, while EMNRD regulates the waste of a resource 
(natural gas) under the state Oil and Gas Act. Finalized in 2021, 
EMNRD's natural gas waste rules require that 98% of natural gas 
produced and transported be captured by the end of 2026, preventing it 
from entering the atmosphere and contributing to a warming climate. 
Meanwhile, NMED's rule adopted this spring will not only curb harmful 
air pollutants from the oil and gas industry but eliminate up to 
426,000 tons of methane emissions annually.
    The agencies approached their respective rulemakings in a 
collaborative manner. They each committed to two years of stakeholder 
engagement before formally proposing draft rules. Even during the 
COVID-19 pandemic, we succeeded in doing this preparatory work through 
virtual meetings and negotiations. We also went beyond the legally 
required public notices to ensure that by the time we started the 
formal rulemaking process we had resolved as many concerns as possible 
from industry, non-governmental organizations, and other members of the 
public. This commitment to engagement and transparency throughout the 
process fostered a sense of ownership and helped build consensus among 
a broad range of stakeholders, including tribal governments, non-
governmental organizations, industry and the public.
    To ensure that we developed rules based on the best technical and 
scientific data available, NMED and EMNRD also jointly convened a 
Methane Advisory Panel (MAP). The group dove into the details of 
natural gas dehydration units, compressors and engines, and all aspects 
of technology related to leaks, venting, and flaring. Both agencies 
benefited from the MAP's technical report which formed the basis for 
both departments' rules.\5\
---------------------------------------------------------------------------
    \5\ https://www.env.nm.gov/new-mexico-methane-strategy/methane-
advisory-panel/.
---------------------------------------------------------------------------
    EMNRD's final rule requires 98% gas capture from production and 
midstream operations by the end of 2026. Starting in May 2021 and 
ending in May 2022, Phase 1 establishes meaningful baselines and 
enforceable goals to reduce natural gas waste. Beginning in June 2022, 
Phase 2 requires operators to meet the reduction targets established in 
Phase 1. Importantly, the rules prohibit routine venting and flaring 
and limit operational venting and flaring to tightly defined 
exceptions--and it all must be reported to EMNRD so that regulators and 
the public know exactly how many emissions are entering the atmosphere 
from the industry. The rules are technology-neutral, so as new emerging 
technologies evolve the rules will not need to be revised.
    This spring, NMED's ozone precursor rules were enacted. These rules 
will reduce ozone pollution and toxic air contaminates, as well as 
ozone precursor pollutants--which has the co-benefit of reducing 
methane emissions. The environmental benefits are estimated to 
eliminate up to 426,000 tons of methane emissions annually, equivalent 
to the energy needed to power 1.2 million homes per year. These 
enforceable rules for new and existing sources apply to all wells, 
large or small, with appropriately scaled requirements. They encourage 
innovation by being technology-agnostic on emission controls and 
monitoring practices. They also require frequent leak detection and 
repair, which is important for fence line communities, while creating 
local jobs. Finally, there are emission reduction requirements for 
significant sources of methane, including storage tanks, pneumatic 
controllers and pumps, natural gas well liquid unloading, compressors, 
glycol dehydrators, pig launching and receiving, well workovers, and 
produced water management units. The rule also establishes a rebuttable 
presumption for industry to demonstrate its compliance when credible 
evidence from a third party is presented to the state that otherwise 
suggests a potential violation.
    Together, New Mexico's rules work in concert with one another, 
providing a comprehensive regulatory framework while not being 
duplicative or mutually exclusive. The rules are nation leading by 
requiring enforceable emission reductions, encouraging innovation, and 
complementing each other without conflicts or gaps. The U.S. 
Environmental Protection Agency and Bureau of Land Management should 
model national efforts on New Mexico's success.
    New Mexico shows what it looks like to be a climate leader and a 
major energy producer, while growing and diversifying our economy. Our 
efforts were on the world stage in November 2021, when I represented 
New Mexico at the United Nations Climate Change Conference in Glasgow, 
Scotland. I was honored to speak alongside President Joe Biden's top 
climate advisors, where I highlighted New Mexico's climate successes. 
In Scotland, we heard again and again that effective government at the 
sub-national level is often what initiates, influences, and steers 
global action. We know our work has impacts beyond our borders, but 
also recognize it is not done. Scientists call this the ``decisive 
decade'' for climate action.
    And we need look no further than my own state to see the 
devastating impacts climate change is already having on our 
communities. Today, the two largest wildfires in New Mexico history 
continue burn in our state. One of these fires has been burning since 
April, more than a month before the traditional start of fire season. 
Firefighting costs alone for these fires are estimated at about $230 
million, and that's without the extensive work that must be done to 
repair and rebuild our communities, the surrounding forests, and the 
watersheds. But even more important than the cost, we've suffered 
tremendous losses. Family homes steeped in centuries of tradition went 
up in flames, and the lives of thousands of New Mexicans have been 
upended and forever changed.
    We can't sit back and allow disasters like this to become the norm. 
We're doing everything we can in New Mexico to meet the climate crisis 
head-on. But it's going to take all of us, across every level of 
government, to reverse the extreme impacts we're already starting to 
see and address the climate crises for ourselves and the generations to 
come.
    Thank you for the opportunity to testify today.

    Ms. Castor. Thank you, Governor.
    Next, Governor Gordon, you are recognized for 5 minutes to 
provide your testimony. Welcome.

             STATEMENT OF THE HONORABLE MARK GORDON

    Governor Gordon. Thank you and good afternoon, Chairwoman 
Castor, Ranking Member Graves, and members of the Select 
Committee on Climate. I am Mark Gordon, Governor of the great 
State of Wyoming, and I want to bring you greetings from the 
Equality State. Thank you for this opportunity and for your 
kind opening thoughts about what is going on in our state.
    Although Governor Lujan Grisham and I are from different 
sides of the aisle, we are westerners and share a view that 
Governors and states are a key to managing methane emissions.
    Like New Mexico, Wyoming has a long, productive history of 
oil and gas regulation. According to the U.S. Energy 
Information Administration, Wyoming is ranked ninth in natural 
gas production and accounts for about 4 percent of U.S.-
marketed natural gas production. We produce more gas from 
Federal leases than any other state.
    Policies like the ban on Federal oil and gas leasing are 
disproportionately harmful to Western states due to the amount 
of land and minerals held by the Federal Government and really 
for no effective reason. If the goal is to reduce greenhouse 
gas emissions, targeting the production of Federal fossil fuels 
only shifts production to other countries, many of whom have 
far less stringent emission controls than the U.S., and in 
particular our Western states.
    Revenue from fossil fuels in Wyoming funds our schools, 
healthcare, public safety, and other essential services. A 
University of Wyoming 2020 study estimated that eight Western 
states with Federal oil and gas leasing programs would have 
production value losses of $872 million and tax revenue losses 
of $345 million in the first year of the leasing moratorium.
    While some may believe that keeping fossil fuels in the 
ground will reduce carbon dioxide in the atmosphere, I 
respectfully disagree. The issue, though urgent, is not that 
simple. Here in Wyoming, I have called for a net-negative 
CO2 emission future using technologies such as 
carbon capture utilization and other technologies. I am 
committed that Wyoming will continue to take a lead in 
responsibly addressing climate concerns.
    Wyoming does not need additional layers of Federal 
regulation to regulate methane emissions. Our regulatory 
process works and has buy-in from the Wyoming oil and gas 
industry. Our regulations are created, vetted, and voted on by 
the people in our state who work here and care about the health 
of their families and our environment.
    Given the reality that fossil fuels will continue to be an 
essential component of energy consumption for years to come, it 
is vital to recognize what states such as Wyoming can do to 
minimize the footprint of energy sources. A 2021 study of the 
Georgia Institute of Technology concluded that Wyoming has the 
lowest fugitive methane emissions associated with production of 
natural gas in any Western state. Wyoming companies have earned 
that recognition.
    Recently, Wyoming producer Jonah Energy announced its sole 
status of a gold standard ranking in the United Nations-
sponsored Oil and Gas Methane Partnership 2.0. Wyoming is also 
a leader in responsibly sourced gas, or RSG, which includes 
environmental and community engagement attributes in addition 
to lower methane emissions.
    Jonah Energy's RSG initiative, for example, includes the 
use of the latest technology, such as drones and continuous 
monitoring with testing for air emissions. Their gas operations 
also include 4,000 solar field units, thus reducing the amount 
of gas used in production.
    Another Wyoming company, Flowstate, uses artificial 
intelligence to detect leaks. And, in 2021, PureWest Energy 
became the first company in the United States to provide 
carbon-neutral RSG offering to its customers.
    Hydrogen also holds a great potential to decarbonize 
natural gas. The School of Energy Resources at the University 
of Wyoming recently launched a Hydrogen Energy Research Center.
    So, in conclusion, Madam Chairwoman and Minority Ranking 
Member, first, for those who argue that state-controlled 
flaring is not effective, less than 1 percent, actually 0.17 
percent of the gas in Wyoming is currently being flared.
    Second, Wyoming's history with orphaned wells is a success. 
Without Federal assistance since 2010, the Wyoming Oil and Gas 
Conservation Commission has identified approximately 6,020 
orphaned wells, and in that time frame nearly 5,000 have been 
plugged using bonds posted by orphaned operators and a tax paid 
by the oil and gas industry. No taxpayer money was used.
    So these conclude my remarks. And, again, Chairwoman 
Castor, Ranking Member Graves, and members of the Select 
Committee, thank you for this opportunity. I am pleased to 
answer any questions.
    [The statement of Governor Gordon follows:]

           Written Testimony of Wyoming Governor Mark Gordon

        Before the House Select Committee on the Climate Crisis

     Hearing on ``State Perspectives on Cutting Methane Pollution''

                             June 14, 2022

    Natural gas will continue to be used to fuel the Nation's economy, 
and indeed is a necessary resource to meet decarbonization goals. 
Wyoming is a leader in the natural gas industry generally, and 
specifically with respect to low-carbon natural gas and responsibly 
sourced gas (RSG). This written testimony provides additional 
background on these and related matters.

      Background on Wyoming's Critical Role in Natural Gas Markets

    Wyoming produces fourteen times more energy than it consumes and is 
the biggest net energy supplier among the states. In 2020, Wyoming was 
the ninth-largest natural gas producer, accounting for almost 4% of 
U.S. marketed gas production.\1\ Wyoming produces more natural gas from 
federal leases than any other state.\2\
---------------------------------------------------------------------------
    \1\ ``Wyoming State Profile and Energy Estimates'' (U.S. Energy 
Information Administration, March 18, 2021) (available at https://
www.eia.gov/state/?sid=WY).
    \2\ ``Wyoming State Profile and Energy Estimates: Profile Analysis 
(U.S. Energy Information Administration'' March 18, 2021) (available at 
https://www.eia.gov/state/analysis.php?sid=WY).
---------------------------------------------------------------------------
    Mining and oil and gas extraction are the biggest contributors to 
Wyoming's gross domestic product (GDP). Mineral royalties, severance 
payments, and related taxes typically provide a substantial portion of 
state revenues.\3\ In 2020, oil and natural gas production: (1) paid 
over $247M in severance taxes, about 59% of all the severance taxes 
paid by all minerals; and (2) accounted for over 40% of the total 
property taxes levied in Wyoming and nearly 70% of the property taxes 
levied on all minerals in 2020. Midstream operations in Wyoming support 
9,217 high-paying jobs and contribute an annual average to state GDP of 
$609M.\4\ Crude and natural gas production is spread across the state, 
and each fossil fuel was produced alone or together in 21 of Wyoming's 
23 counties during 2021.\5\
---------------------------------------------------------------------------
    \3\ Id.
    \4\ ``Oil & Gas Facts and Figures 2021'' (Petroleum Association of 
Wyoming, 2021) (available at https://pawyo.org/facts-figures/).
    \5\ Id.
---------------------------------------------------------------------------
    Wyoming ranks among the top 10 states in both natural gas reserves 
and marketed natural gas production. Two-thirds of the state's natural 
gas is produced on federal lands leased by energy companies. Production 
takes place throughout the state, but most of Wyoming's natural gas has 
come from fields in the Green River Basin, located in the state's 
southwest corner. Wyoming has 16 of the nation's 100 largest natural 
gas fields, including the Pinedale and Jonah fields that rank among the 
top 10.\6\
---------------------------------------------------------------------------
    \6\ Id.
---------------------------------------------------------------------------
    During 2020: (1) 211 companies in Wyoming produced natural gas; and 
(2) 14,449 wells were producing gas. In 2019 Wyoming had 25 operating 
gas plants processing nearly 97% of the state's gas production. There 
are currently about 100 companies operating 30,000 miles of pipelines 
in Wyoming, not including all gathering systems or all inactive or 
abandoned pipelines. Pipelines are located in all of Wyoming's 23 
counties and carry crude, natural gas, natural gas liquids, carbon 
dioxide (CO2) and petroleum products.\7\
---------------------------------------------------------------------------
    \7\ ``Oil & Gas Facts and Figures 2021'' (Petroleum Association of 
Wyoming, 2021) (available at https://pawyo.org/facts-figures/).
---------------------------------------------------------------------------
    Wyoming is the third-largest producer of coalbed methane, behind 
Colorado and New Mexico. Coalbed methane accounts for about 7% of the 
state's natural gas production.\8\
---------------------------------------------------------------------------
    \8\ ``Wyoming State Profile and Energy Estimates: Profile 
Analysis'' (U.S. Energy Information Administration, March 18, 2021) 
(available at https://www.eia.gov/state/analysis.php?sid=WY).
---------------------------------------------------------------------------
    Wyoming consumes about one-tenth of the natural gas it produces. 
Two-fifths of the state's gas consumption is used in the production and 
distribution of energy. The state's industrial sector accounts for 
another two-fifths of gas use, and the residential, commercial, and 
electric power sectors together account for the remaining one-fifth of 
natural gas consumption. Natural gas is Wyoming's most widely used home 
heating fuel, found in 6 out of 10 households.\9\
---------------------------------------------------------------------------
    \9\ Id.
---------------------------------------------------------------------------
    Most natural gas produced in the state is shipped out through 
interstate pipelines that cross into Utah, Nebraska, Colorado, and 
Montana, on its way to both Midwest and West Coast markets. Several 
interstate pipelines converge at Opal, Wyoming, a major interstate 
natural gas trading hub. Some of the natural gas that remains in the 
state is placed in underground storage. Wyoming has nine natural gas 
underground storage sites that can hold a combined 140 billion cubic 
feet of gas, which is about 1.5% of U.S. total storage capacity.\10\
---------------------------------------------------------------------------
    \10\ Id.

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             Wyoming is Committed to CO2 Capture

    Fossil fuels should, and will, continue to be an important mix in 
providing a consistent, reliable source of energy for our country. Coal 
and other fossil fuels have become the scapegoat for climate change 
fears. That target is misplaced, burning coal and other fossil fuels is 
not the issue, the release of C02 in the atmosphere is the issue. That 
is where the target should be and we are committed to the use of carbon 
capture to keep an ``all the above'' energy strategy for our state and 
nation.
    Wyoming law provides that regulated electric utility companies must 
establish goals for low carbon power generation through the use of 
carbon capture. We are working with those companies to see that carbon 
capture becomes a part of their planning process.

         Additional Federal Regulation of Methane is Not Needed

    Let me be very clear, Wyoming does not need, nor do we welcome, an 
additional layer of federal regulation to regulate methane emissions. 
Our regulatory process works and has buy-in from the Wyoming oil and 
gas industry.
    In Wyoming, we manage our natural and mineral resources 
exceptionally well, providing for both environmental stewardship and 
energy production. Wyoming's statutory and regulatory framework 
encourages the responsible production of oil and gas resources. 
Throughout the past twenty-six years, Wyoming has been recognized as a 
national leader in regulating air emissions from oil and gas 
production. In that time, Wyoming has issued over 29,000 air quality 
permitting actions to control and minimize emissions. In 1997, absent 
an U.S. Environmental Protection Agency (EPA) permitting program or 
guidance, Wyoming Department of Environmental Quality's (DEQ) Air 
Quality Division established its oil and gas minor source guidance and 
permitting program. This air emissions program is consistent with 
Wyoming's legislative directive aimed at preventing, reducing, and 
eliminating pollution and retaining primacy over Wyoming's air quality 
resources.
    Wyoming's air permits are issued under its state implementation 
plan that the EPA has approved and codified into federal regulation. 
See 40 C.F.R. Sec. 52.2620(c)(1) (2021).
    EPA has long recognized that Wyoming is a leader in regulating air 
emissions from oil and gas production. In 2011, in response to the 
growth in hydraulically fractured natural gas wells, the EPA looked to 
Wyoming and Colorado as it developed its oil and gas new source 
performance standards for production equipment--commonly referred to as 
Quad O. EPA's rule recognized that some state permitting programs 
already regulated those wells and the rule took advantage of existing 
state compliance mechanisms.
    Our history and experience have shown that the best regulatory 
process is at the state and local levels. We work closely with 
regulatory agencies such as the EPA, particularly since we have been 
delegated primacy over air. We earned that delegation and take that 
responsibility seriously. In short, let the states do their jobs.

         The Critical Role Played By Timely Federal Lease Sales

    In order to develop fields responsibly, with minimal surface 
disturbance and the least amount of stranded oil and gas, leasing must 
be thoughtful, strategic, and forward-thinking. It may take a company 
several years and multiple sales for a successful bidder to gather 
enough leases to allow the organized development of the entire field to 
avoid waste and stranding assets. In Wyoming, much of the land is in 
what we call ``the checkerboard,'' where federal, private and state 
lands (or minerals) alternate section by section, much like a 
checkerboard. While it might look like a company is stockpiling leases, 
it is really attempting to gather enough leases to form a multi-section 
drilling spacing unit, working out pooling arrangements and verifying 
who gets rental and royalty payments. When you add the time necessary 
for environmental reviews and surface use agreements it is often years 
and the holding of many leases before the actual exploration can begin. 
Quarterly lease sales allow companies to keep working towards 
completing their development plans. A pause on leasing can set back 
development for years.
    It is important to point out that the companies must pay the 
federal government while they hold the lease. Those payments come as 
bonus bids, rentals and royalty payments. Most companies do not have 
unlimited capital, thus they are not going to pay for leases that do 
not have the real potential for an eventual return. During the window 
when a company holds a lease, the lands remain available for other uses 
not incompatible with the ability to develop a lease.

         Wyoming's Leadership in Species and Habitat Protection

    Wyoming has demonstrated unequaled leadership in mitigation efforts 
to protect species like Greater sage-grouse and vital habitat 
components such as migration routes have been established. Much of the 
work supporting these issues has been funded by the very industries 
hampered by the moratorium. NGOs, industry, local and state governments 
are cooperating for the greater good of the environment, society, and 
people's well-being. But that progress is undermined when timely 
scheduled development is uncertain. Whole seasons, where development 
can occur, can be taken off-line, thereby further crippling activity in 
our state that will, in turn, imperil our local economy significantly 
and potentially catastrophically.
    Wyoming's oil and gas industry is an active participant in the 
protection and enhancement of wildlife. Projects sponsored by the 
industry have resulted in more and better habitat for species including 
mule deer, antelope and sage grouse. As the ability of these industries 
to develop oil and gas on federal lands decreases, so does their 
ability to contribute to habitat restoration and enhancement projects.

    Wyoming is a Leader in Low-Carbon Intensity Natural Gas and RSG

    Wyoming is a leader in responsible oil and gas development. The 
Wyoming Oil and Gas Conservation Commission (WOGCC) has stringent rules 
for flaring all wells (federal/fee/state). These are long-standing 
procedures that protect Wyoming's environment. A small volume of 
flaring is allowed by rule if alternatives are determined to be 
uneconomical and for safety reasons during well drilling and completion 
activities. If operators believe it is necessary to flare volumes in 
excess of what is allowed by rule, they are required to apply for WOGCC 
approval. Part of this submission is a gas capture plan that details 
gas gathering systems, takeaway capacity, and gas treatment systems 
within the area, other producing and planned wells within the area, gas 
gathering companies operating within the area and information on the 
gas gathering line to which the operator proposes to connect. This 
information, along with detailed information concerning the well to be 
flared, is examined by the WOGCC as part of its consideration of 
approval for flaring. With these stringent rules on flaring, the total 
gas volumes flared in Wyoming for all wells is very small, less than 
one percent (0.17% in 2021) of all gas produced within the state in any 
given year.
    The WOGCC also has a long-standing program to plug orphaned oil and 
gas wells. This program dates back to the early 1990s, and there are 
records of the WOGCC and the U.S. Geological Survey plugging orphan 
wells as early as the 1920s in Wyoming. Due to our efforts, there were 
minimal orphan wells in the state of Wyoming for many decades. However, 
in approximately 2010, several thousand coalbed methane wells were 
orphaned due to depressed gas prices. Since 2014 the WOGCC has 
conducted an accelerated orphan well plugging program to drastically 
reduce the number of orphan coalbed methane wells and plugged in excess 
of 1,000 wells in 2020. This plugging process was accomplished through 
the use of the bonds paid by those companies that abandoned the wells 
and a conservation fee that is paid by the oil and gas industry. Except 
for some limited circumstances identified below, no taxpayer dollars 
have been used to permanently plug orphaned wells.
    In 2018, the WOGCC partnered with the Bureau of Land Management's 
(BLM) Wyoming State Office to plug orphaned wells on federal mineral 
leases, building on the successful program on state and private land. 
These wells had been identified by the BLM in Wyoming as orphan, but 
since funding was not allocated to plug the wells, the BLM was not able 
to do anything with them. The BLM did have extra funding from other 
programs available, but was not able to work within the confines of the 
federal budgeting requirements to reallocate the funding to plug orphan 
wells. The WOGCC applied for a grant from the BLM to secure funding to 
plug the orphan federal wells. The WOGCC has extensive experience 
plugging thousands of orphan fee and state wells, thus bringing 
knowledge, experience and efficiency to the program by coordinating 
statewide bids for the plugging contractor, and BLM staff observed the 
plugging of the wells in the field. The WOGCC and BLM have successfully 
plugged 82 orphan federal wells and six abandoned produced water 
reservoirs in Wyoming for the two years this program existed.
    The pace of plugging was picked up dramatically due to wise use of 
Coronavirus Aid, Relief, and Economic Security (CARES) Act funding. 
Under current requirements, today's wells are sufficiently bonded to 
assure plugging and appropriate abandonment activities. In the event 
plugging costs were to exceed the available bond, the WOGCC is 
authorized to utilize funds from conservation taxes paid by the oil and 
gas industry for the plugging of orphan/abandoned wells.
    I recognize there are proposals currently being discussed for 
federal funding to plug more orphan/abandoned wells. While that would 
certainly be helpful, Wyoming is not betting on that outcome. Our 
program will continue, but it is important that the federal leasing 
program continues to provide a steady, consistent stream of federal 
leases along with leases on state and private lands. Without leases 
there are not any conservation taxes.
    This aggressive program to plug wells means Wyoming does not have a 
significant problem with fugitive methane emissions, as discussed 
above.
    Concerning overall emissions from oil and gas operations, DEQ works 
closely with EPA to oversee and regulate emissions. For the most part, 
we have a cooperative relationship that recognizes our ability and 
knowledge to adequately address any emission concerns. This includes 
one of the most responsible programs for regulating volatile organic 
compounds that also results in reduced methane emissions.
    According to a 2021 study by researchers at the Georgia Institute 
of Technology, natural gas consumed in Wyoming has the lowest estimated 
consumption-normalized production-stage methane emissions of any state 
in the western United States (see Figure 1).\11\ This does not come as 
a surprise as Wyoming has ``long [been] a leader in taking on oil and 
gas'' air emission issues, including being an early mover among the 
states in addressing fugitive methane emissions.\12\ In 2021 Jonah 
Energy announced its sole status of Gold Standard ranking in the United 
Nations-sponsored Oil and Gas Methane Partnership 2.0.\13\ More 
broadly, last year I directed the state to pursue a goal of net 
negative CO2 emissions and continue to use fossil fuels, a 
task that the Wyoming Energy Authority (WEA) is leading through the 
development of appropriate strategies.
---------------------------------------------------------------------------
    \11\ Burns, D. et. seq. ``Attribution of Production-Stage Methane 
Emissions to Assess Spatial Variability in the Climate Intensity of US 
Natural Gas Consumption,'' 2021 Environ. Res. Lett. 16 044059, Fig. 3 
(available at https://iopscience.iop.org/article/10.1088/1748-9326/
abef33); see also ``States Looking to Decarbonize May Need to Weigh 
Their Gas' Origin--Study,'' (S&P Global Market Intelligence, March 18, 
2021) (available at
---------------------------------------------------------------------------
https://www.spglobal.com/marketintelligence/en/news-insights/latest-
news-headlines/states-looking-to-decarbonize-may-need-to-weigh-their-
gas-s-origin-8211-study-63228122).
---------------------------------------------------------------------------
    \12\ ``Leading States Tackling Fugitive Emissions Problem Head-On'' 
(EDF Blog, April 10, 2014) (available at https://blogs.edf.org/
energyexchange/2014/04/10/leading-states-tackling-fugitive-emissions-
problem-head-on/).
    \13\ ``Jonah, PureWest Both Reach Natural Gas Milestones'' 
(Pinedale Roundup, Nov. 18, 2021)
---------------------------------------------------------------------------
(available at https://pinedaleroundup.com/article/jonah-purewest-both-
reach-natural-gas-milestones).
[GRAPHIC] [TIFF OMITTED] T8346A.001


   Fig. 1. Estimated consumption-normalized production-stage methane 
            emissions for natural gas consumed in each state

    Wyoming also is a leader in RSG. Jonah Energy has a RSG initiative, 
for example.\14\ And in 2021, PureWest Energy LLC, Wyoming's largest 
natural gas producer, became the first company in the United States to 
provide a carbon neutral RSG offering to customers.\15\
---------------------------------------------------------------------------
    \14\ https://www.jonahenergy.com/sustainability/responsibly-
produced-gas/.
    \15\ ``Private Wyoming Gas Producer Announces First US Carbon-
Neutral RSG Offering'' (Hart Energy, October 7, 2021) (available at 
https://www.hartenergy.com/exclusives/private-wyoming-gas-producer-
announces-first-us-carbon-neutral-rsg-offering-196627).
---------------------------------------------------------------------------
    Wyoming also has several initiatives related to the production and 
utilization of hydrogen, including but not limited to blue hydrogen 
with natural gas as a feedstock as Wyoming is a leader in carbon 
capture & storage/carbon capture utilization & storage technologies, 
too.\16\ On March 17, 2021, for example, WEA opened a request for 
proposals for a hydrogen pilot project. Three finalists were 
subsequently approved for the ``State of Wyoming Pilot Project: Design 
and/or Construction of a Pilot Project Demonstration `Green' or `Blue' 
Hydrogen Production and Use.'' \17\ On a related front, the School of 
Energy Resources (SER) at the University of Wyoming recently launched a 
Hydrogen Energy Research Center.\18\
---------------------------------------------------------------------------
    \16\ With funding from the U.S. Department of Energy, one of the 
nation's leading CCS applied research projects--``Wyoming 
CarbonSAFE''--is based in Gillette, Wyoming. https://www.uwyo.edu/cegr/
research-projects/wyoming-carbonsafe.html. The Integrated Test Center--
a leading research facility for CCUS technologies--is also located in 
Gillette. https://www.wyomingitc.org/. For these and other reasons, 
Wyoming truly is ``CCUS ready.'' https://www.wyoenergy.org/news/
wyoming-is-ccus-ready/.
    \17\ https://www.wyoenergy.org/news/awardees-for-the-hydrogen-
pilot-project/.
    \18\ https://www.uwyo.edu/ser/research/centers-of-excellence/
hydrogen-energy-research/index.html.

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  Natural Gas is Necessary to Meet the Nation's Decarbonization Goals

    In the United States, natural gas is envisioned to continue to play 
a vital role in meeting net-zero and related policy goals. According to 
the International Energy Agency (IEA), ``[e]ven with falling battery 
costs, natural gas is currently the most viable near-term option in 
most parts of the United States for balancing renewable energy at scale 
and providing essential load-following services. While this raises the 
capacity value of natural gas power plants (reflected in the IEA's 
value-adjusted leveli[z]ed cost of electricity generation), it does not 
automatically translate into increased natural gas use in power 
generation . . . [and] conventional gas power plants play an 
increasingly important role in providing system flexibility, while 
baseload generation is met by plants fitted with carbon capture, 
storage and utili[z]ation technology.'' \19\
---------------------------------------------------------------------------
    \19\ ``The Role of Gas in Today's Energy Transitions,'' p. 56 (IEA, 
2019) (available at
---------------------------------------------------------------------------
https://iea.blob.core.windows.net/assets/cc35f20f-7a94-44dc-a750-
41c117517e93/TheRoleofGas.pdf).
    EIA recently ``explore[d] [the] effects of not building future 
interstate natural gas pipelines'' between 2024 and 2050, a possible 
outcome if either or both the Updated Policy Statement and Interim GHG 
Policy Statement are allowed to take effect. In that scenario, DOE 
projected in 2050 (and in comparison to the Reference Case of pipeline 
builds): (1) 5% less natural gas production; (2) 4% less natural gas 
consumption; (3) ``the Henry Hub spot price . . . would be 11% 
higher''; (4) natural gas's share of U.S. electricity generation would 
fall from 34% to 31%, with the deficit made up from renewables, coal 
and nuclear; and (5) CO2 emissions would be only ``slightly 
lower.'' \20\
---------------------------------------------------------------------------
    \20\ ``EIA explores effects of not building future interstate 
natural gas pipelines'' (EIA, April 4, 2022) (available at https://
www.eia.gov/todayinenergy/detail.php?id=51898).
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    In 2020/2021, WEA commissioned Professor Tim Considine, an 
economist at the University of Wyoming, to study the fiscal and 
economic ramifications that Wyoming could face with a moratorium on new 
federal leases for oil and gas companies, or a full drilling ban on 
onshore federal leases. According to Considine's study, a leasing 
moratorium reduces Wyoming oil and gas tax revenues nearly $200 million 
per year during the first five years. For onshore federal lands 
examined in the study, a leasing moratorium reduces oil and gas tax 
revenues by $1.1 billion per year during the first five years. States 
with onshore federal lands use this income to fund education, health 
care, local governments, and special districts, such as conservation 
boards.\21\
---------------------------------------------------------------------------
    \21\ ``The Fiscal and Economic Impacts of Federal Onshore Oil and 
Gas Lease Moratorium and Drilling Ban Policies'' (Dr. Tim Considine, 
Dec. 14, 2020) (available at
---------------------------------------------------------------------------
https://www.wyoenergy.org/wp-content/uploads/2020/12/Final-Report-
Federal-Leasing-Drilling-Ban-Policies-121420.pdf).
    In 2021, WEA, the Wyoming Enhanced Oil Recovery Institute and SER 
commissioned Advanced Resources, International (ARI) to conduct a 
similar study of the environmental and economic impacts of policy 
initiatives that suspend or restrict new leasing and drilling for 
fossil fuels on federal lands. The ARI study concluded: (1) GHG 
emissions could increase because of a federal leasing and/or drilling 
ban; (2) without an increase in oil and/or gas prices, U.S. oil and gas 
production could decrease by 21% to 34% by 2030; (3) a ban on future 
drilling on federal lands would prohibit development of 600 to 850 
million barrels of incremental oil potential from CO2 
enhanced oil recovery in Wyoming, that would facilitate potential 
geologic storage of 420 to 570 million metric tons of CO2; 
(4) without an increase in oil and gas prices, drilling levels in the 
six western states would drop by as much as 35% due to federal leasing/
drilling policies; (5) in Wyoming, by 2030, drilling levels decline by 
28%, growing to 43% by 2050; (6) in Wyoming, declines in expenditures 
associated with oil and gas well drilling would reach over $800 million 
per year by 2030; and (7) in Wyoming, declines in state revenues 
associated from oil and gas production could reach over $600 million 
per year by 2040.\22\
---------------------------------------------------------------------------
    \22\ ``Assessing Emission and Other Impacts Associated with the 
Proposed Federal Leasing Ban in Western States'' (ARI, March 2021) 
(available at
---------------------------------------------------------------------------
https://www.eoriwyoming.org/downloads/Impacts-of-proposed-federal-
leasing-ban-2021.pdf).

    Ms. Castor. Well, thank you, Governor Gordon.
    I will recognize myself for 5 minutes to start off the 
questioning.
    So, Governor Lujan Grisham, New Mexico, as you have stated, 
is a major energy-producing state. But when you came into 
office, you decided, well, we need to work on a balanced 
approach, and you ramped up renewables, you expanded cost 
savings for consumers through energy efficiency, and then moved 
to eliminate methane pollution and energy waste.
    A lot of folks have said what you are doing in New Mexico 
is a model. What lessons can we learn from what you have done 
in New Mexico in this balanced approach that can inform our 
policymaking here in Washington?
    Governor Lujan Grisham. Chairwoman, thank you for that 
question. And I also want to take a moment to highlight the 
great work of my colleague from Wyoming.
    States really are the innovators, and the Western states 
are clear about climate change and the climate crisis, and we 
all have a unique relationship with our industry and our 
stakeholders.
    My advice to Congress is we did work with the oil and gas 
industry very closely and our environmental stakeholders, as 
well as constituents living in frontline communities.
    This stakeholder group was critical in our success in not 
only passing the Energy Transition Act, which set both 
achievable but very robust climate crisis tackling solutions, 
including reductions in emissions and meeting renewable energy 
targets and getting them to market.
    I think the problem is when you set these goals in motion, 
and strategies and policies, including our regulatory work, we 
do it in absence of the stakeholders and the actual industry 
who is critical to our success.
    I think it is worth noting we haven't been challenged in 
court for any of our regulatory work. The oil and gas industry 
supported, through our legislature, additional investments in 
our regulatory state bodies that they are working diligently 
with us.
    And most importantly, in terms of the innovation, in fact, 
New Mexico, I believe, is the only state through the industry 
that has fuel cells on site, which means we are not arguing 
about methane reductions and collections capture or flaring or 
leaking.
    They are turning it into electricity on the spot, showing 
that the forward-thinking effort and this clear public-private 
partnership is not only meaningful but it is achievable. And 
they recognize that the climate crisis is real, that they have 
an obligation to address it.
    In high-producing states like New Mexico, without that 
work, quite frankly, they run out of water. So we have a 
produced water rule, which means we are recycling water. The 
oil and gas industry asked New Mexico to work with other 
states, which we have done, including Texas, to promote those 
policies so that, again, they have consistency in what they do, 
that they are leading producers and innovators across the 
country, while meeting stringent, productive rules, but also 
making money.
    We know that methane and natural gas create an opportunity 
for us to produce additional access to energy on the 
international market, as well as the USA market, but it also 
brings revenue, which brings jobs.
    We don't want to waste methane and we want to address the 
climate crisis at the same time. The stakeholder set of 
agreements on the front end is exactly how you get there.
    Ms. Castor. The Biden administration has proposed a methane 
rule. How would the Federal methane rule proposed by EPA 
complement what you have done at the state level?
    Governor Lujan Grisham. In a thousand different ways. And I 
know I am taking too much of your time, Madam Chairwoman, so I 
will be quicker.
    Look, what companies want is predictability. What we need 
across the country is to all meet these goals. What we need is 
more access to the energy market. That does that.
    And, in fact, if you have got competing rules in competing 
states, not only does it lower predictability, it increases 
liability for this industry. They are clear about that. We want 
the same fair equitable rules. And it also does more to protect 
these frontline communities. It would be, frankly, a game 
changer across the country.
    Ms. Castor. Thank you very much.
    Next we will go to Ranking Member Graves.
    You are recognized for 5 minutes for questions.
    First, we will go to Mr. Palmer of Alabama for 5 minutes.
    You are recognized.
    Mr. Palmer. Thank you, Madam Chairman.
    And welcome to our witnesses.
    And, Governor Lujan Grisham, it is good to see you again.
    What I want to do is I want to direct some questions to 
Governor Gordon.
    There is a tremendous amount of research that has been done 
on methane capture and repurposing. Are you familiar with some 
of the things that are coming out of MIT and other research for 
converting methane to usable products, particularly liquid 
fuel?
    Governor Gordon. Yes, in a cursory fashion.
    Thank you.
    Mr. Palmer. They have discovered a way to reduce methane 
flare offs. And I don't know if this is impacting that in 
Wyoming. That is one of the big arguments that a lot of the 
folks have made, is how do we reduce the flare offs and convert 
methane into a profitable product. And what MIT has done is 
they have been able to convert it to derivatives of methanol 
and to produce several chemical products that can be made into 
automotive fuel. They have also used it to make energy 
production more efficient while also reducing emissions.
    Are you finding technology like that being applied in 
Wyoming?
    Governor Gordon. Madam Chairwoman, Mr. Palmer, I would say 
that we have a company here in Wyoming, MESSCO, which has 
developed technology that can capture over 80 percent of NGLs. 
They can then be produced for other products like the ones you 
are talking about.
    That is an innovative technology that is being used both in 
Wyoming and in North Dakota. To my knowledge, it may also be 
used elsewhere. But clearly one of those innovations that can 
happen at a state level, and it is something that we truly want 
to encourage.
    Mr. Palmer. In your testimony you mentioned that Wyoming's 
regulatory framework for methane emissions promotes both 
environmental stewardship and energy production. And I assume 
that is capturing methane and using that along with your 
natural gas and your oil production.
    The Biden administration's EPA seems intent, though, on 
just adding regulation after regulation on energy production.
    Can you talk a little bit more about how the Federal 
regulations may negatively impact your state's natural gas 
production?
    Governor Gordon. Yes, Chairwoman Castor and Mr. Palmer, 
Representative Palmer.
    We would regard the Federal regulatory scheme that is 
coming on, and we did provide comments to this, as being overly 
burdensome, providing, without much knowledge of the costs 
associated with the additional regulatory framework, more 
guidance, particularly on smaller producers.
    We believe and commented on this to the EPA that that would 
actually put a number of our smaller producers at risk and the 
people that work for them.
    I would say that what we have so far is an opportunity--I 
think we both testified to this, Governor Lujan Grisham and 
myself--to the fact that states really do provide an 
opportunity for innovation on a regulatory framework, and we do 
that with the knowledge and buy-in of our producers and our 
stakeholders.
    That is a proper approach, and I think a Federal one-size-
fits-all rule doesn't necessarily fit with unique 
circumstances, unique geologies, unique kinds of----
    Mr. Palmer. I only have a few seconds left, and I just want 
to ask about how this administration's energy policies are 
impacting Wyoming families and small businesses.
    We just saw gas hit $5 a gallon on the national average. I 
think in Wyoming regular is at, like, $4.76 a gallon, but 
diesel is at $5.64. And that has got to be having an impact on 
small towns in terms of their own budgets because we are 
talking about diesel in 2020 was $2.48 a gallon and regular was 
$2.26 a gallon.
    So when you talk about small towns and their fire 
departments, their police departments, it has got to have an 
enormously negative impact. And then talk about families that 
are literally trying to decide whether or not they can fill 
their tank to get to work that week and still be able to buy 
groceries.
    Could you comment on how that is impacting families from 
Wyoming?
    Governor Gordon. Yes. Thank you, Chairwoman Castor and 
Representative Palmer.
    The impact on families is devastating. Wyoming has a lot of 
veteran families, and just yesterday I was hearing about how 
those veterans who often live in increasingly rural situations 
are having to figure out how they are going to find their way 
to pay for fuel to get to the grocery store, to get to church. 
It is really having an enormous impact on them.
    What these policies have done to Wyoming is pretty 
demonstrable. In March of 2019, we had about 37 rigs running, 
34 rigs. Today, just today, we have 19 rigs running. They have 
come back slowly.
    But without having some predictability for their future and 
without knowing what happens with Federal leases, we have seen 
a lot of pullback from Wyoming and moving to places like Texas 
or offshore where there is perhaps a little more predictable 
future.
    So it has been devastating to our ancillary industries, to 
our small towns, to our veterans. And I think those issues are 
not going to be easily repaired. But hopefully we can do 
something to make a difference.
    Ms. Castor. Thank you.
    Thank you, Governor.
    Next we will go to Rep. Huffman.
    You are recognized for 5 minutes.
    Mr. Huffman. Thank you, Madam Chair. And let me also thank 
you for your kind words and thoughts for Representative Casten 
and his family. We are all thinking about them today, and we 
are all heartbroken.
    It is wonderful to see my old friend and former colleague, 
Michelle Lujan Grisham, Governor of New Mexico, and it is 
exciting to hear about how these Governors are working to make 
the natural gas system and its infrastructure less leaky, more 
efficient. That is certainly good news because we know methane 
is a super-polluter when it comes to the climate crisis.
    And so I guess the goal is to try to make sure that all of 
that natural gas doesn't just leak into the atmosphere as a 
super-polluter, that we keep it in the pipes and get it to the 
point where we can just burn it and then just have 
CO2 pollution, which is still not good.
    And so I want to just kind of reset a little bit of the 
context for this conversation, because this is a climate crisis 
we are talking about.
    And we have a huge methane problem. Methane emissions are 
the second-largest contributor to human-caused climate change, 
second to carbon dioxide, and we are setting record after 
record when it comes to methane emissions. In fact, we just set 
the record second year in a row for the largest methane 
measurements since we began measuring methane some 40 years 
ago.
    And to make matters worse, when we talk about methane 
emissions, we are also talking about other toxic pollutants 
that go along with it. These are pollutants that cause 
debilitating health problems for millions of people who live 
near oil and gas operations, which of course are the largest 
source of methane emissions.
    But I do want to thank Governor Lujan Grisham for her 
leadership in New Mexico, because it is no easy thing to tackle 
the oil and gas industry--or to work with them in your case, as 
you described--and we know that strong methane standards are a 
necessary tool among the other steps we need to take to 
confront the climate crisis and to advance environmental 
justice, because we need to always be thinking about those 
other pollutants and those other impacts.
    One of the problems with methane is we don't have a very 
good sense for how much methane pollution there even is. We do 
know that it is underreported. We do know that every time we 
use new technology to look for methane, we find more of it than 
we thought that we had.
    And part of that is certainly underreporting, but also 
inadequate rules, underfunded government agencies and their 
staff to enforce rules. And all of this, for the most part, has 
been just fine with the industry. So I am always glad to hear 
where progress is being made.
    But it is important to note that the real solution to this 
climate crisis is to dramatically reduce fossil fuel extraction 
and really begin that thing we talk a lot about, that 
transition to clean energy, and a just transition as we do it.
    That is the imperative of this climate crisis. It is the 
obvious takeaway from this terrible war that Russia is waging 
in Ukraine and, frankly, from just about every other war that 
we have seen in recent decades.
    A few specifics.
    The International Energy Agency and the Intergovernmental 
Panel on Climate Change tell us that we have to stop permitting 
new oil and gas production entirely if we are serious about 
tackling this crisis.
    The IPCC's new mitigation report and study in the journal 
Environmental Research Letters includes significant findings on 
methane that make it very clear that continuing to operate--
just continuing to operate our current fossil fuel 
infrastructure--drives us past any point of limiting global 
warming to 1.5 degrees Celsius.
    So we just need to be very clear-eyed about that. We have 
got to start phasing it out, and we have to mean what we say 
when we talk about this transition.
    Now, California, I am proud to say, is leading when it 
comes to tackling methane pollution. We are requiring a 40 
percent reduction by 2030. We are on track to meet that goal.
    And the California taxpayers are putting a lot of skin in 
the game to clean up the industry's mess. California is 
spending $300 million to tackle methane leaks, including 
plugging idle and leaking wells, which is really critical.
    These are important things.
    But let me ask you, Governor Lujan Grisham, what more can 
the Federal Government do to support states like California and 
New Mexico who are setting high climate goals and trying to 
achieve them?
    Governor Lujan Grisham. Congressman, it is great to see you 
again. And I too share your enthusiasm for the work of many of 
the Western states Governors, including Governor Newsom, 
Governor Inslee, Governor Brown, Governor Gordon, and so many 
others--Governor Polis--who are really clear that you have to 
have both, that we have to reduce emissions in all of our 
sectors, oil and gas, the energy sector, the transportation 
sector, the ag sector. We have to do more at the individual 
level.
    All of that has to occur, while at the same time figuring 
out what we do about reducing emissions in our core energy 
sector, particularly for states like mine that are large oil 
and gas producers.
    Where the Federal Government can create that certainty--and 
I think that we can do that. This may be a place where my 
colleague, Governor Gordon, and I might just barely disagree. 
We work really well together.
    States need flexibility. I think we agree about that. You 
can create potential narrow waivers for independent producers, 
for different geology and different state efforts in both their 
transition and reducing the impact of the oil and gas or fossil 
fuel industry on our climate crisis.
    We need Federal rules. We need Federal investments in 
innovation. We need more transmission for renewable energy. And 
we need more equitable investments. And New Mexico has done 
that. We are investing in the workers in the fossil fuel 
industry directly.
    These kinds of policies create a race to the top, address 
the climate crisis, and create opportunities for states, with 
their stakeholders, to do far more than they are.
    Last thing I will say. You are right, we don't look at 
methane emissions from a baseline. So we do it differently 
every time. There are no real standards. There is self-
reporting. It is difficult to say where we are.
    Ms. Castor. Thank you, Governor.
    Mr. Huffman. Thank you, Governor.
    Thank you, Madam Chair. I yield back.
    Ms. Castor. Next we will recognize Mrs. Miller for 5 
minutes.
    And since they have called votes, I am going to be a little 
more stringent on the time and ask the Governors to watch the 
clock as well.
    You are recognized.
    Mrs. Miller. Thank you, Chair Castor and Ranking Member 
Graves.
    And thank you to both of you Governors for being here 
today.
    Like you all testifying before us today, I also represent 
an energy-producing state. West Virginia is blessed with vast 
amounts of coal, oil, and natural gas, and our history is rich 
in stories of our proud people providing the country and the 
world with the energy we need to keep the lights on, keep our 
homes heated, and to power our economy.
    As the world continues to advance and the demand of energy 
increases, energy-producing states have risen to the challenge 
to meet this need for growth. As the last year has proven, an 
all-of-the-above energy strategy is necessary to keep prices 
affordable and the power grid reliable.
    Ensuring that we keep utilizing our natural sources of 
energy while supplementing the grid with new sources will be 
essential to achieving this goal and keeping our energy-
producing communities intact and prosperous.
    I look forward to working with my Federal and state 
partners to ensure an all-of-the-above strategy is fully 
embraced at all level of government.
    Governor Gordon, how important are Federal leases to the 
development of energy resources in your state? And can you 
explain why having leases available is not enough and why 
producers need certainty from the Federal Government in order 
to make long-term investments for reliable energy sources?
    Governor Gordon. Thank you, Madam Chair and Madam 
Representative Miller. Thank you for the question.
    It is absolutely vital that companies have a way to plan 
their future. Leases aren't always held at exactly the same 
stage, and so it takes some time to put together a leasehold 
that reduces the impact, the surface impact of the development. 
It allows for much more better technology, much more planned 
infrastructure, and just makes the whole process work a lot 
better.
    I do want to just comment, I think, Representative Miller, 
your point about having an all-of-the-above future is 
absolutely essential. Wyoming has virtually every type of 
energy resource you could imagine. In a few years we will 
outpace Governor Lujan Grisham for the largest wind farm. We 
have just built a new generation nuclear plant where we are in 
the process of getting the Natrium reactor up online.
    And I would also comment that it is our fossil fuel 
developers that have done the most for wildlife and 
understanding how we do migration corridors and making sure 
that their impact on the ground is de minimus.
    So I want to thank you for mentioning the all-of-the-above 
energy future.
    Mrs. Miller. So you do see coal playing a role providing 
baseload energy as we move forward.
    As the Governor of a landlocked state, like my own state, 
we often face challenges to bring our coal to market even 
during periods of high prices like today.
    What are some of the difficulties Wyoming has faced, 
especially when it comes to exporting American coal to the 
international market, which burns much cleaner than our foreign 
competitors?
    Governor Gordon. Thank you, Madam Chairwoman and 
Representative Miller.
    Wyoming has had a distinct challenge in that and we have 
brought it up as a constitutional Commerce Clause issue that 
the State of Washington blocked our ability to transport coal 
from the Powder River to Asian markets. And in their own 
analysis they indicated that it would have reduced greenhouse 
gases to burn Powder River coal as opposed to Jakartan or the 
other options that they might have had.
    It was really designed to keep the coal in the ground. It 
has been problematic. We did bring a constitutional challenge 
and almost got it to the Supreme Court. But, unfortunately, the 
company had to declare bankruptcy.
    To your point about coal, we believe coal holds a very 
large part of the future. If we can integrate biomass with coal 
and have CCUS, we believe that is the way we get to a net-
negative CO2 future, and that is something that 
Wyoming is pushing with all new energy.
    Mrs. Miller. So you are invested in carbon capture 
technology? Is that true?
    Governor Gordon. That is correct. In fact, in the last 
budget session I was able to secure matching funds from our 
legislature to promote what is really an important new 
technology that we can incorporate with our existing coal 
infrastructure to reduce CO2 emissions and then be 
able to geologically sequester it. All of these things are 
essential for climate solutions.
    Mrs. Miller. Thank you.
    Thank you. I yield back my time.
    Ms. Castor. Thank you.
    Rep. Bonamici, you are recognized for 5 minutes.
    Ms. Bonamici. Thank you, Madam Chair.
    Thank you, Governors Lujan Grisham and Gordon.
    I serve on the Committee on Science, Space, and Technology, 
and last week we released a majority staff report finding that 
oil and gas companies are failing to address super-emitting 
leaks, failing to use data to mitigate methane leak emissions, 
and they are not deploying innovative and available leak 
detection and repair technologies in a consistent manner.
    Governor Lujan Grisham, nice to see you again.
    In your testimony, you discuss how New Mexico is cutting 
harmful methane pollution. What will it take to get more states 
to take similar actions? And why should the United States be 
leading on tackling harmful methane pollution?
    Governor Lujan Grisham. Nice to see you too, Congresswoman.
    We have an obligation to do our part as one of the largest 
energy consumption countries in the world. We need to do our 
part to combat climate change.
    Look, the West, including New Mexico, isn't any longer 
under an extreme drought situation. We are in the 
aridification. Getting water to the West is going to be the 
next new congressional Federal Government challenge that we are 
all going to have to address.
    We are spending tens of billions just in this state to deal 
with the recovery of just one fire over the next decade, and we 
need to protect our frontline communities in much more 
aggressive ways.
    If there isn't a Federal design that both creates the 
baseline for accountability--leak detection repair and review, 
predictability and consistency in the industry--we can't get 
there as a country. And given that I am the state that has one 
of the largest, if not the largest, oil reserve in the country, 
the Permian and Delaware Basins collectively, Texas and New 
Mexico need to have common rules. The only way we get there is 
through a Federal effort.
    We want flexibility about how that gets done. We want our 
stakeholders, including oil and gas, to be able to be effective 
innovators.
    But this is the only way you get there. Otherwise, it is an 
up-and-down roller-coaster ride where we don't, any of us, meet 
the goals and efforts----
    Ms. Bonamici. Thank you for your leadership, Governor, on 
that. And I absolutely agree that the Federal Government has a 
role in getting other states to do the work as well.
    So, Governor Lujan Grisham, again, the BlueGreen Alliance 
has found that the continued adoption of leak-reduction 
technologies and practices at new and modified oil and gas 
facilities could create up to 50,000 new jobs during the next 
decade. And they also found that 300,000 jobs would be 
available from repairing and replacing leaky natural gas 
distribution pipelines which pose major health and safety 
hazards.
    So, Governor Lujan Grisham, how can the Federal Government 
help support the workforce development so these opportunities 
that are available to New Mexico and across the country to 
access the skills they need for jobs in the clean energy 
economy?
    Governor Lujan Grisham. I am going to push Congress. New 
Mexico now boasts the best college access programs in the 
country, free 4-year, free 2-year, free license, free 
certificates. We have Centers of Excellence in energy 
transition and methane-reduction efforts in our community 
college. Make community college free and you will create the 
workforce of the future.
    Twelve new companies have moved to New Mexico that will 
quite literally create thousands of jobs in our state dealing 
with our methane-reduction efforts while putting more energy 
into the pipeline--pardon the pun--access to consumers, 
lowering prices.
    Ms. Bonamici. Thank you very much.
    Do you have in New Mexico, then, the partnerships between 
industry and community college to make sure that the programs 
at the community colleges are meeting the needs in the 
workforce?
    Governor Lujan Grisham. Yes, we do. And one of our best 
efforts actually is now launching in Hobbs, New Mexico, which 
is a cornerstone for much of our oil and gas production in the 
state.
    Ms. Bonamici. Terrific. Thank you.
    And I am going to yield back the balance of my time.
    Ms. Castor. Thank you.
    Rep. Crenshaw, you are recognized for 5 minutes.
    Mr. Crenshaw. Thank you, Madam Chair.
    I want to start by expressing my sincere condolences to our 
colleague, Congressman Casten, and Tara and I will keep your 
wife and your family in our prayers.
    Turning to the hearing today, thank you to the Chair and 
Ranking Member for holding this hearing.
    And thank you to both Governors for being here and taking 
the time out of your very important jobs to discuss methane 
emissions with us.
    But I want to point out that when we say methane emissions, 
it is a bit of a misnomer, because what we are really talking 
about is leaks of natural gas. And for anyone watching, let's 
make that clear. There are no methane pipelines. Methane makes 
up 70 to 90 percent of natural gas.
    And that is important for a couple of reasons.
    One, we should all agree that we need to produce more 
natural gas. This administration has even said so. We need to 
increase our exports to the EU by 65 percent. The Department of 
Energy says we are on a war footing for more production. Gas 
prices have quadrupled, which have, in some states, like mine, 
doubled electricity prices.
    It is also important because, number two, no one, not one 
company wants to see a leak of natural gas because the stuff is 
actually pretty valuable, especially as the price has 
quadrupled. And as we see these electricity prices increase 
drastically, I have got to ask: why are we discussing 
regulations and requirements that would reduce natural gas 
production when electricity prices have recently doubled?
    Now, this hearing is about how much more potent methane is 
as a greenhouse gas. Okay. That is true. But it is also true 
that methane--or, in other words, natural gas--is also the 
primary reason that we have lowered our overall carbon 
emissions in the U.S. back to 1990 levels.
    Even the U.N. IPCC has acknowledged this due to the fact 
that natural gas displaces huge amounts of coal.
    In the end, we are talking about leaks during natural gas 
processing and transport, which by all estimates only really 
account for a very tiny fraction of emissions. And I stated at 
the top, companies already have an incentive to prevent these 
leaks. They don't need the heavy hand of government to force a 
new regulation on their product which will do nothing but raise 
an already expensive price.
    Now, the word ``crisis'' also gets used a lot in this 
hearing, and yet you don't see that word in, say, the United 
Nations IPCC report. And the word is used so that you can 
convince people to double their electricity bills every month 
to pay for this regulation if they believe that they are indeed 
in danger and indeed in crisis.
    But the truth is, especially right now, no one is willing 
to shoulder additional and unnecessary costs on their energy 
bills. So we are seeing an administration talk outside of both 
sides of their mouth. The Department of Energy says we are on a 
war footing to increase energy production. The EPA says we are 
on a war footing to roll out rule after rule that is chilling 
investment in energy production.
    I think it is a foolish way to govern, and it is hurting 
Americans now for some vague promise of slightly better weather 
in the faraway future, and the cost-benefit analysis just does 
not add up.
    So I want to turn to Governor Gordon and just generally ask 
you, how will these regulations, requirements affect production 
in your state at a time when I think we all agree we need more 
production?
    Governor Gordon. Madam Chairman, Representative Crenshaw, 
thank you for that question.
    Additional regulation is always an inhibitor to any kind of 
business proposition, and it will raise the price particularly 
on fuel. It will raise the price on production. It will make 
things just more difficult to get accomplished.
    For the state, it will also complicate--and we did comment 
on this--it will complicate our ability to administer those 
regulations, putting unnecessary and burdensome requirements on 
our staff to be able to sort of meet these new requirements.
    So all in all, Governor Lujan Grisham might refer to it as 
flexibility. I look at it as the opportunity to be able to 
innovate and be able to get the same project accomplished.
    I would point out--and this is a particular issue for 
production in Wyoming--we have taken two refineries offline and 
converted them to renewable fuels--renewable fuels that are 
first produced in the Midwest as beef tallow and soy oil, then 
railroaded to Mexico where they are pretreated, then moved up 
to the existing refineries that are being reconditioned to 
refine the product and then send it to California.
    That all is an energy loss. It costs a lot of extra money. 
But for consumers in California, it is great. For people here 
in Wyoming, not so good.
    Mr. Crenshaw. And I assume, Governor Grisham, you probably 
disagree, but I am not sure we have enough time to ask you why.
    I yield back. Thank you.
    Ms. Castor. Thank you.
    Next we will go to Representative McEachin.
    You are recognized for 5 minutes.
    Mr. McEachin. Thank you, Madam Chair.
    And, to our dear friend and colleague who has ascended to 
such great heights, Governor Lujan Grisham, it is good to see 
you again.
    Governor, we all understand methane is the second-largest 
contributor to human-induced climate change and immediate 
action can quickly reduce the rate of overall atmospheric 
warming and allow us to help limit global warming to the Paris 
Agreement target of 1.5 Celsius.
    How has the New Mexico Environment Department and the 
Energy, Minerals, and Natural Resources Department's commitment 
to engagement and transparency with Tribal governments, NGOs, 
industry, and the public eased efforts in developing and 
implementing new rules?
    Governor Lujan Grisham. It has been the cornerstone of our 
success, Congressman. And it is nice to see you, too.
    Look, we are proof positive that you can increase 
production, you can reduce emissions, you can innovate, you can 
create new jobs.
    And I agree that the Biden administration, which is working 
to get more access with natural gas and committed to do that 
for the European Union, methane and reducing waste is one vital 
vehicle to doing that while at the same time making it clear 
that we take seriously that we have to reduce our emissions and 
greenhouse gas aspects for every single state.
    We know that the industry can, in fact, work with you. We 
have got both large and small producers, our New Mexico Oil and 
Gas Association, who supported a consistent, transparent 
regulatory vehicle and set of policies that would make sense to 
promote their innovation and to provide access for them to 
different educational and related National Lab scientific 
efforts.
    We hosted an evidence-based, science-based National Lab and 
related groups that supported the industry to do more in that 
space of innovation. It is critical to the success of both the 
regulatory environment and, in fact, meeting our climate crisis 
goals.
    Mr. McEachin. Thank you for that, Governor.
    As you know, the effects of climate change, including 
methane emissions, disproportionately impact low-income and 
fence line communities. How can we best ensure that the 
policies we enact in response to this are effective in securing 
access to clean air and drinking water?
    Governor Lujan Grisham. Congressman, you have highlighted 
how important it is to make sure that we have a national focus 
on this issue. In fact, we know unequivocally that, where 
harmful energy production strategies exist, that they have a 
disproportionate impact on frontline communities.
    In New Mexico, that means exactly what you think it means. 
Tribal communities, Hispanic communities are in a situation to 
have far more negative, serious health impacts related to 
living where the production of fossil fuels is occurring.
    Which is one of the reasons in our Transition Act, which 
was supported by all of the energy industries, provides real 
skin in the game by investing in frontline communities.
    One example--twenty million dollars goes to a natural gas 
county, San Juan County, large city there, Farmington, while 
$20 million goes directly to workers to offset these negative 
impacts and to highlight that our public health 
responsibilities will be met in each of these frontline 
communities.
    Mr. McEachin. This sounds exciting, Governor. Thank you for 
that.
    Finally, I would just ask you--and this probably touches a 
little bit on what you were just alluding to--but how do we 
ensure that these communities have access to the new and 
exciting employment opportunities that are going to be created 
through this new green economy?
    Governor Lujan Grisham. By making sure, Madam Chair and 
Congressman, that we invest in their training.
    These efforts, which are supported by both the men and 
women in our labor organizations in the state, private sector, 
and our institutions of higher education, are all wrapped up in 
what we are calling a moonshot investment in education and 
workforce retooling and retraining.
    You have to do all of it in our both energy transition and 
in our commitment to reduce harmful emissions.
    Mr. McEachin. Thank you so much, Governor. Good to see you 
again.
    Madam Chair, I yield back.
    Ms. Castor. Next up, Representative Escobar.
    You are recognized for 5 minutes.
    Ms. Escobar. Thank you so much, Madam Chair.
    And I want to thank you for opening up our hearing with a 
moment of silence. I am so heartbroken for our colleague, 
Representative Casten, and his family. I am just sending lots 
of love and prayers for comfort to him and his family.
    And, to our panelists, thank you so much for joining us 
today. Thank you for your leadership.
    I represent the community of El Paso, Texas, and I live in 
a state that is obviously also a major energy producer. But, 
unfortunately, we also have the dubious distinction of being 
the first in harmful flaring, which is obviously devastating 
for the environment.
    And so, Governor Lujan Grisham, I would like to explore 
with you just a couple things because we are neighbors, and you 
have been at the forefront of really crafting a modern vision 
for New Mexico, one that doesn't just embrace the state's role 
as an energy producer, but that, at the same time, looks to the 
future in terms of climate mitigation and really trying to get 
as in front of what will be some of our biggest challenges 
ahead, try to get as much in front of them as possible.
    And so, Governor Lujan Grisham, I wanted to share with you 
that, according to the Department of Energy, my home state of 
Texas, as I mentioned, ranks first in harmful flaring. And 
obviously the impacts of the climate crisis, we feel them in 
communities that are economically disadvantaged. We feel the 
pain even worse.
    But, last year, operators flared or wasted enough gas to 
meet about 10 percent of our nation's home heating needs while 
releasing from the flares massive amounts of CO2, 
unburned methane, and other pollutants that harm people's 
health in nearby communities.
    New Mexico, as I mentioned, on the other hand, along with 
Colorado, is leading the nation by prohibiting routine flaring 
of natural gas that is co-produced at oil wells.
    So, Governor Lujan Grisham, what is the challenge that you 
face? In the absence of Federal regulation, here you are, a 
state that is trying to be on the cutting edge and reduce these 
emissions, and you are right next door to a state that is 
number one in releasing these emissions.
    What kind of challenge does that pose to you for the goals 
that you are trying to set for your state?
    Governor Lujan Grisham. It, quite frankly, means that our 
public health initiatives for people living in frontline 
communities don't get met in the way that they should if you 
are in the Texas border area.
    So look no further than Lea and Eddy County, where all of 
our efforts get diminished by--you step over the border, I can 
see Texas, then we see flaring by a company that isn't flaring 
in New Mexico. It makes no sense.
    And I firmly believe that the oil and gas industry is 
interested, by and large, in making sure that we have a 
consistent effort collectively.
    Texas is also causing incredible ozone problems in New 
Mexico that, without these rules squarely placed in Texas, 
which means that all of our stakeholders and partners are 
operating the same way, then we aren't meeting our climate 
crisis goals and we are creating real obstacles and challenges 
in mitigating our air pollution, and that is hugely 
problematic.
    I am spending too much time.
    Texas is harming New Mexico residents, and New Mexico 
residents have no recourse against that or to deal with that 
without Federal support in this space.
    And, most importantly, it can all get done while helping 
already record profits in an industry--record profits. We are 
seeing a 125 percent increase in oil and gas production in New 
Mexico with the requirements that they don't flare unless it is 
an emergency.
    So this notion that we can't reduce prices, reduce utility 
prices, and protect people is just not the experience of the 
second-largest oil and gas state in the country.
    Ms. Escobar. Governor Grisham, thank you so much. You 
actually answered my second question, which was, after New 
Mexico decided to prohibit routine flaring, did it harm your 
position as an energy-producing state? And the answer that you 
gave us was no.
    Thank you so much for your leadership.
    Madam Chair, I yield back.
    Ms. Castor. Thank you.
    Next we will go to Representative Brownley.
    You are recognized for 5 minutes.
    Ms. Brownley. Thank you, Madam Chair.
    And hello, Madam Governor. It is wonderful to see you. 
Thank you for your leadership. The good folks of New Mexico are 
very, very lucky to have you. And thanks for being here with us 
today.
    A lot of my questions have been asked. But I wanted to 
drill down a little bit further on your development of a 
regulatory framework that is enforceable, and I am interested 
in the enforceable piece.
    So what is it that will make it enforceable?
    Governor Lujan Grisham. Two things. And, Congresswoman, it 
is lovely to see you too.
    Madam Chair, thank you for allowing my informality with so 
many of my dear colleagues, and really appreciate the kind, 
bipartisan nature of this committee and the respect that you 
have shown both Governor Gordon and I and so many other--I will 
just brag about the Western states' Governors.
    And this is how we work. And I really appreciate the 
respect and kindness and the opportunity to have robust 
discussions about what works in our states and what could work 
across the country.
    You do need investments in a regulatory system. And what 
does that mean? And I know that we say that, and I do think 
people sort of bristle. But, in fact, a company that is meeting 
those goals, it doesn't help them if a company right next door 
isn't. They need to know that we have the folks who can assist 
them to detect leaks, to repair leaks, to identify that, we are 
being fair and equitable about how we hold the industry 
accountable.
    And the way that they are enforceable is you get the 
industry to help you craft the rules. This notion that we have 
to be adversarial is also false.
    What they want is transparency. Agreed. They deserve that. 
What they want is equitable fairness in any regulatory 
environment that invests in their innovation and independent 
designs and ideas about how to meet the regulatory effort.
    That is what we did here, and I have no doubt that, if we 
use New Mexico's effort, that we can adopt those same kinds of 
standards at the Federal level that also allows states like my 
good friend and colleague, Governor Gordon, to do the 
innovation that meets the needs and highlights the strengths in 
his state.
    That is what Governors want, that is what our industry 
partners want, and that is what is enforceable, if we do that 
like New Mexico did at the Federal level.
    Ms. Brownley. Thank you, Governor.
    And I also wanted to know, in terms of creating this whole 
framework which you have done in terms of getting to your goals 
and your whole renewable portfolio, standards, et cetera, did 
carbon pricing ever come up in the conversation?
    Governor Lujan Grisham. While we certainly worked with 
folks who were very interested in carbon pricing, and while 
that is on the national dialogue, it was not specific in our 
work.
    More specific from the industry was creating a level 
playing field by being able to more universally identify 
methane-reduction strategies and to have partnerships where 
they are innovating, we are innovating.
    I didn't mention a new company called Sceye that is 
assisting us in methane leak detection in new, exciting ways, 
because you can't see an invisible gas, and you can't have 
enough people with their devices on the ground, particularly 
given a state like ours, the size of ours, with the number of 
innovators.
    But here is where we did go. Instead of identifying the 
specific strategy, we hold utilities to a net-zero carbon 
standard and then let them figure out how they get there. But 
they have to get there, and that is part of our transition 
requirements.
    Ms. Brownley. Very good. And I don't have much more time, 
but I know, as you have been talking about having the oil and 
gas sector as stakeholders in this whole conversation, and I 
think you have already said that they are looking for a level 
playing field and transparency.
    Was there anything else in that discussion that they didn't 
want to do with regards to regulations or accountability or 
measurability?
    Governor Lujan Grisham. I am sure there are some. That 
would take more than my 9 seconds. But our commitment is, is 
that we continue to work with them so that we deal with those 
issues and resolve them in an immediate and timely manner. That 
is the key to a regulatory successful environment.
    Ms. Brownley. Thank you, Madam Governor. It is wonderful to 
see you.
    Ms. Castor. Next up, Ranking Member Graves.
    You are recognized for 5 minutes.
    Mr. Graves. Thank you, Madam Chair.
    Governor Gordon, I believe the State of Wyoming was 
recognized by the World Resources Institute in their efforts to 
reduce emissions, methane emissions specifically.
    Governor Lujan Grisham, as I recall, the State of New 
Mexico reduced emissions 57 percent over a 6-year period while 
actually increasing production I think it was 125 percent, 
which is just remarkable that you are seeing production go up 
while emissions going down.
    So I, again, want to congratulate each of you for your 
states' efforts to be innovative here.
    Governor Gordon, in the State of Wyoming, you not only have 
pursued efforts to reduce emissions through conventional fuels, 
but you have also progressed efforts on blue hydrogen. You have 
worked to try to diversify the state's energy sources, advanced 
nuclear and others.
    Could you talk about kind of how you are pursuing 
conventional fuels with carbon capture as well as 
diversification and how that sort of fits into your overall 
energy strategy?
    Governor Gordon. Well, thank you, Chairwoman and Ranking 
Member Graves. Yes. Thank you very much for that.
    Wyoming, as I mentioned in my testimony, is kind of an all-
of-the-above state. We have multiple resources that we want to 
use, and actually consider the transition a real challenge and 
an opportunity.
    I want to make a little bit of a distinction between just 
jobs and careers. I think Governor Lujan Grisham and I have 
both talked about how jobs are one thing, and careers, people 
that stay, people that raise their families, people that are 
invested in the state, that is something that I think both of 
us want to have.
    Which is one reason why we have tried to diversify across, 
advanced nuclear, which can bring back on shore really some of 
the most important parts of that future energy supply, our 
uranium industry, both important for New Mexico and for 
Wyoming.
    It is also really talking about hydrogen. And there 
Colorado, Wyoming, New Mexico, and Utah have jointly talked 
about a hydrogen hub.
    We recognize that electric vehicles have a future, and we 
all have worked towards that.
    But in logistics, and particularly long-range logistics, 
over-the-road trucking and those kinds of things, we really 
need to find some other alternatives. And that is why we have 
been as invested as we have been in developing this hydrogen 
hub. Our School of Energy Resources really has taken a 
leadership role in that.
    And there the challenge is, of course, for the West, water 
is incredibly precious. Should we be burning water as fuel or 
should we use it for growing crops, being able to feed our 
people? Just keeping our electric grid up and running, all of 
those things are particularly important in the Colorado River.
    So what are the options that we can use natural gas for? 
What are the things we can use with coal? Both can be useful 
sources for hydrogen. Hydrogen will be a part of the energy 
future.
    And so, Ranking Member, I really thank you for that 
question, because I think our future really depends on us being 
able to transition in a way that grows our economy, be able to 
make the careers that are important, and be able to have the 
innovation that is really necessary for our country to remain a 
leader in the world.
    Mr. Graves. Thank you, Governor.
    Governor, your state is also one of only two states in the 
country that EPA has delegated primacy to in order to approve 
carbon capture or sequestration projects.
    Can you talk about how that delegation of authority from 
the EPA has benefited your state in efforts to promote carbon 
capture storage and utilization projects?
    Governor Gordon. Well, absolutely, Chairwoman and Ranking 
Member.
    For us, we believe that our legacy industries have as much 
a role to play in the future of energy as any of the new 
sources that come online. We obviously know they have to be 
better. Carbon capture and sequestration provides us that 
opportunity.
    And we also understand that, if we are going to do 
something about CO2 in the atmosphere--I think, 
actually, Chairwoman, you mentioned that CO2 is a 
little longer lasting in the atmosphere--we are going to have 
to do something dramatically to reduce that, to offset what is 
going to be uses elsewhere.
    Carbon capture and sequestration, particularly geologic 
sequestration, is important. If we can incorporate agricultural 
processes and in things like forest management in that 
equation, we believe that we can do a much better job of 
capturing carbon and getting it disposed of.
    Our primacy has given us a lot of an opportunity. Really 
only North Dakota and Wyoming are the two states that have that 
opportunity. We feel that we can be the solution to long-term 
climate change if we use this. Wyoming also has the best 
ability to model what that does in formation. And so we really 
stand ready.
    The big difficulty for us is the first well is the most 
challenging. It is the one that regulation has to be really 
proofed and challenged. And that is really where we are at this 
point.
    Thank you.
    Mr. Graves. Thank you. Thank you, Governor.
    Ms. Castor. Thank you.
    Next, we are going to recognize Representative Carter for 5 
minutes. But I am going to run and vote and allow Ranking 
Member Graves to close out the hearing with the unanimous 
consent request.
    But I want to, before I leave, I want to thank Governor 
Lujan Grisham and Governor Gordon for sharing your wisdom with 
us today on how to reduce methane pollution and energy waste 
and tackle the climate crisis.
    Representative Carter, you are recognized for 5 minutes.
    Mr. Carter. Thank you, Madam Chair.
    And thank both of you for being here.
    Governor Lujan Grisham, good to see you again. We miss you 
up here.
    Governor Gordon, I want to ask you, according to the EPA, 
methane emissions associated with natural gas and oil 
production declined by 23 percent since 1990.
    This is a point that I don't think the oil and gas industry 
in the United States get credit for, is that really we have 
cleaned up the oil and gas here in our country, and it is much 
better and much cleaner than it was in years past. And I really 
think that we deserve to have credit for that.
    I would argue also that methane emissions are already 
effectively regulated by the EPA and by states. Under the 
framework for controlling emissions of volatile organic 
compounds, EPA found that the required volatile organic 
compounds pollution control has also reduced methane emissions 
at the same time, making it clear that separate regulation of 
methane established no additional health protections and is 
thus unnecessary.
    In your testimony, Governor Gordon, you said, ``Wyoming 
does not need, nor do we welcome, an additional layer of 
Federal regulation to regulate methane emissions.''
    Does that mean that you agree that existing EPA regulations 
can reduce EPA emissions?
    Governor Gordon. Ranking Member and Representative, thank 
you for that question.
    We believe that two things are really important. We have 
had an amazing reduction in emissions already with EPA 
regulations in place. States like Wyoming and New Mexico have 
been able to sort of go beyond in that without much detriment. 
We have done that with stakeholder agreement and, actually, 
support.
    The same is true of coal. Coal emissions have been reduced 
dramatically over the last several years. Wyoming boasts the 
Integrated Test Center, which is actually looking at what we 
can do to capture carbon and put it to useful products.
    All of these things are happening without increased 
regulation. And, in fact, I think markets should drive this. 
And I don't mean investment markets. I think consumer markets. 
If consumers are truly interested and invested in seeing how 
carbon dioxide or methane can be reduced, let's build a market 
around that, let's let the private sector deal with it.
    Mr. Carter. Well, it certainly sounds like, by all 
accounts, that your state is doing a wonderful job, the State 
of Wyoming, and that you really don't need more Federal 
regulations. Do you think that is the case for all states?
    Governor Gordon. Thank you, Ranking Member and 
Representative Carter.
    You know, honestly, I think states, at this point we have a 
floor on the Federal level, and states are allowed to build 
their own systems if they choose to do that. We have done that 
with both the Nuclear Regulatory Commission, we have done that 
obviously now with carbon sequestration. This has given us an 
opportunity to be very competitive in the marketplace.
    So, to answer your question directly, I don't really think 
we need additional Federal regulation. We all understand what 
the circumstances are. Let's get out of the way and let 
industry deal with the problem.
    Mr. Carter. Thank you, Governor. I could not agree more 
with you. And I really applaud your efforts and your attitude 
toward this and your approach to this.
    Let me ask you something about the future of using fossil 
fuels. You have directed your state to pursue a goal of net-
negative CO2 emissions and continue to use fossil 
fuels.
    And I think this is extremely important, because I believe 
that we have to adopt an all-of-the-above type energy strategy. 
And, again, as I stated earlier, I don't think that we get the 
credit here in the United States that we deserve for the 
decrease in emissions that we have achieved over the last 
decade.
    One of the facts that I use most often when we talk about 
this subject is the United States of America has decreased our 
carbon emissions more in the last decade than the next 12 
countries combined, and we have done it without necessarily 
having to have the interference of EPA or the heavy hand of 
government to do it. If we would get out of the way and let the 
oil and gas industry just do what they do so well, I think we 
would be able to achieve that.
    Just very quickly, what do you think that we sacrifice by 
choosing to move on or ignore the abundant resource of fossil 
fuels that we have in this country?
    Governor Gordon. Well, thank you, Ranking Member and 
Representative.
    Really, what we choose to ignore is the opportunity for new 
technology to show up.
    What we do in this country obviously should influence what 
happens elsewhere in the world. The best thing we can do to 
reduce carbon emissions, methane emissions, is to have our 
technology be the very best and be able to export it to places 
that perhaps can't meet that challenge right now.
    If we can reduce that on a global level, we will understand 
much better what our opportunities are to be able to address 
climate change.
    Mr. Carter. Thank you, Governor.
    And I yield back.
    Mr. Graves. Thank you. I want to thank our witnesses for 
the testimony today.
    Governors, both of you, really appreciate your leadership 
efforts in your respective states and appreciate you sharing 
perspective with the committee.
    At the request of the Chair, I am going to ask unanimous 
consent to submit four items into the record: an August 3, 
2021, letter from the New Mexico delegation to the 
Environmental Protection Agency regarding methane emissions; a 
September 22, 2021, letter from the Colorado delegation to the 
EPA relative to emissions; a May 17, 2022, Environmental 
Research Letters document; and, lastly, a ``Net Zero By 2025--A 
Roadmap for the Global Energy Sector'' by the IEA.
    [The information follows:]

                       Submissions for the Record

                      Representative Kathy Castor

                 Select Committee on the Climate Crisis

                             June 14, 2022

ATTACHMENT: Letter from the New Mexico Delegation urging the EPA to 
create
        new and stronger protections against methane pollution from oil 
        and gas activities, informed by and building on the strong New 
        Mexico state rules, August 3, 2021.

This letter is retained in committee files and available at:
        https://www.heinrich.senate.gov/newsroom/press-releases/
        heinrich-leads-members-of-nm-delegation-to-urge-epa-to-
        strengthen-methane-rules-for-oil-and-gas-industry

ATTACHMENT: Letter from the Colorado Delegation urging the EPA to 
swiftly
        adopt protective methane standards for the oil and gas sector, 
        using the robust Colorado rules as a blueprint for bold action, 
        September 22, 2021.

This letter is retained in committee files and available at:
        https://www.bennet.senate.gov/public/_cache/files/a/e/ae2ba1ed-
        2e02-4847-9bab-acab0b4bd2d1/
        AB25F5BD169E6F574EC8465A856E78C8.9.21.21-
        letterepamethanestandards.pdf

                       Submissions for the Record

                      Representative Jared Huffman

                 Select Committee on the Climate Crisis

                             June 14, 2022

ATTACHMENT: Kelly Trout, et al., Environmental Research Letters 17 
064010,
        17 May 2022,``Existing fossil fuel extraction would warm the 
        world beyond 
        1.5 +C.''

This article is retained in committee files and available at:
        https://iopscience.iop.org/article/10.1088/1748-9326/ac6228/pdf

ATTACHMENT: Bouckaert, S., et al., International Energy Agency, May 
2021 Net
        Zero by 2050: A Roadmap for the Global Energy Sector.

This report is retained in committee files and available at:
        https://www.iea.org/reports/net-zero-by-2050

    Mr. Graves. Without objection, all members will have 10 
business days within which to submit additional written 
questions for the witnesses. And I ask our witnesses to please 
respond as promptly as you are able.
    This hearing is now adjourned.
    [Whereupon, at 2:32 p.m., the committee was adjourned.]

                 United States House of Representatives

                 Select Committee on the Climate Crisis

                        Hearing on June 14, 2022

          ``State Perspectives on Cutting Methane Pollution''

                        Questions for the Record

                  The Honorable Michelle Lujan Grisham

                                Governor

                          State of New Mexico

                       the honorable kathy castor
    1.  Why it is important to cut methane pollution from existing 
wells and facilities, not just new or modified ones?

    New Mexico has more than 60,000 existing wells and more than 10,000 
existing facilities. Over the course of 2021 those existing wells and 
facilities had more than 16,371,180,000 cubic feet of methane waste. If 
rules are only written to address new or substantially modified 
facilities, the majority of those sites would go unaddressed.

    2.  Recent analysis found that leaked, vented, or flared methane 
wastes at least $271 million worth of natural gas annually in New 
Mexico. Capturing this wasted methane could add around $43 million in 
revenue from taxes and royalties to the state. Additional economic 
analysis found that strong methane rules like the ones you have 
implemented could deliver hundreds of millions more in human health 
benefits and avoided air quality nonattainment costs. Could you expand 
on how cutting down on methane waste will benefit your state 
economically?

    Fundamentally, our methane rules are a cost-saver. They require the 
use of methane control technology, which is already cost-effective as 
it allows producers to capture more gas that they can then bring to 
market for sale. This is even more profitable now due to higher natural 
gas prices.
    The rules also create a stable regulatory environment where 
businesses know what to expect, and in turn spur innovation. There are 
already more than twelve firms in New Mexico specializing in methane 
emission mitigation services or equipment manufacturing.
    Finally, our rules ensure that New Mexicans are less likely to 
suffer the health consequences of poor air quality, preventing health 
expenses that otherwise would have been borne by consumers and the 
larger health care system. The US EPA and the World Health Organization 
have recognized that hazardous air pollutants like benzene, that are 
known to be emitted from oil and gas production wells, cause cancer and 
other major non-cancerous health impacts, and the World Health 
Organization states that there is no safe level of exposure to these 
pollutants.
    In New Mexico 35,000 residents are living within 1,000 feet of a 
wellsite. Of those, over 2,700 are children under the age of 5, more 
than 4,500 are adults 65 years or older, more than 5,700 are living in 
poverty, and 19,000 are people of color, including more than 5,800 
Native Americans. Preventing exposure to these pollutants may result in 
long term cost savings due to reduced negative health impacts.

    3.  The Bipartisan Infrastructure Law invests $4.7 billion in 
helping states and tribes and federal agencies plug abandoned wells 
across the country. How do you expect that funding to impact your state 
in terms of jobs and impact on rural and tribal communities?

    The Bipartisan Infrastructure Law (BIL) provides a total 
appropriation to states of $4.7 billion to fund programs for the proper 
closure and cleanup of abandoned oil and gas wells and facilities on 
federal, state, tribal, and private lands. Over the next ten years New 
Mexico expects to receive approximately $100 million of those funds, 
for use on state and private land, which will be directly injected back 
into local New Mexico economies. The management of orphan oil and gas 
infrastructure falls to the Energy, Minerals, and Natural Resources 
Department (EMRND) which has a long-standing orphan well plugging 
program. This program is managed through contracts with local New 
Mexico companies. The BIL funding will allow EMNRD to substantially 
increase the level of work that is done and provide long-term funding 
commitments to these local contractors. Long-term commitments allow 
them to hire and retain additional staff, providing high paying jobs in 
rural communities.
    The BIL will not only have positive impacts on rural communities by 
providing high paying jobs, but will also clean up historic pollution 
sites within these communities, many of which have borne the brunt of 
decades of environmental neglect. The majority of the oil and gas 
production in New Mexico occurs in two unique basins, the San Juan 
Basin, consisting primarily of San Juan, Rio Arriba, McKinley and 
Sandoval counties, and the Permian Basin, consisting primarily of Lea, 
Eddy and Chaves counties. Based on the definitions provided in the 
guidance for the BIL orphan well programs, these areas qualify as 
``disadvantaged communities'' (e.g., poverty rates range from 10% to 
32% across these areas). Further, the area around the San Juan Basin is 
home to a large portion of New Mexico's tribes and pueblos. As a result 
many, if not all, of the wells and associated facilities that EMNRD 
plugs and reclaims will benefit historically disadvantaged communities.

                            References Page

    Preventing Disease Through Healthy Environments, WHO (2010).
(https://www.who.int/publications/i/item/9789241565196)

    ``Clean Energy Jobs Are Booming, Making Up For Rising Fossil Fuel 
Unemployment'' (https://www.forbes.com/sites/energyinnovation/2022/06/
29/clean-energy-jobs-are-booming-making-up-for-rising-fossil-fuel-
unemployment/?sh=2c46a4c61c13)

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