The undersigned investors, representing $5.51 trillion in assets under management, write with new and serious concerns regarding the Environmental Protection Agency’s (EPA) proposed rollback of the New Source Performance Standards (NSPS) regulating oil and gas methane emissions. We believe that continued federal methane regulation is critical to the future of natural gas in the clean energy transition. We would like to hear the companies in our portfolios publicly support continued federal regulation of methane and oppose EPA’s proposed rollback.  

The EPA’s proposed rollback of methane regulations comes at a landmark time for the U.S. oil and gas industry, presenting a risk to recent economic gains. As U.S. production reaches record highs and the U.S. oil and gas industry experiences strong export growth, methane standards support global competitiveness in a world with shrinking carbon budgets and growing international climate policy action. Furthermore, methane mitigation technologies have proven themselves cost-effective when implemented, driving additional revenue through the capture of lost product. 

The rollback of existing, strong, yet cost effective, regulatory standards will lead to policy uncertainty for industry for years to come. Further, a decision by the EPA to stop considering the oil and gas industry a significant source of harmful methane emissions could increase legal uncertainty over the status of the rollback itself. Finally, if the proposed rollback is enacted without opposition from those in industry, the deregulation of methane and the acquiescence of the industry will shape the public narrative on natural gas, overshadowing proactive measures of industry leaders. 

Some companies are demonstrating leadership on managing methane emissions—both by reducing their own emissions and by advocating for continued federal regulation of methane.1, 2, 3, 4 Yet industry performance is not uniform, and others remain largely inactive. The result is a fragmented market with mixed performance on emissions reductions. Ultimately, the removal of methane regulations deepens the threat from climate change, increasing economy-wide risks. Methane rules are the most effective tool to ensure a level playing field and to protect the industry as a whole from these material risks. 

Therefore, we ask you to engage proactively during the ongoing rulemaking process by: 

• Submitting comments to the EPA expressing:
  • support of the direct regulation of methane and its significance for the oil and gas industry
  • the importance of upholding the scientific consensus and maintaining the EPA’s finding that methane from oil and gas sector sources contributes to GHG pollution and climate change
• Urging your trade associations and industry groups to support direct regulation of methane and affirm the scientific consensus on methane emissions from the oil and gas industry

Elimination of the direct regulation of methane emissions will drive volatility and uncertainty. The rollback of federal regulation will lead to excessive methane emissions, threatening the role of natural gas in the low carbon future and challenging oil and gas companies’ social license to operate. The need for comprehensive national standards to mitigate sector-wide risk is clear. Industry silence will be interpreted as implicit support for no regulation at all.  

In order to protect the natural gas industry’s future global competitiveness, we urge you to publicly support continued EPA regulation of methane emissions.

Investor Signatories: 

• Aargauische Pensionskasse (APK), Switzerland
• Adrian Dominican Sisters, Portfolio Advisory Board
• Aegon Asset Management
• Allianz Global Investors
• As You Sow
• Bernische Lehrerversicherungskasse, Switzerland
• Bernische Pensionskasse BPK, Switzerland
• Bon Secours Mercy Health
• Boston Common Asset Management, LLC
• Caisse de pension des sociétés Hewlett-Packard en Suisse, Switzerland
• Caisse de pensions de l'Etat de Vaud (CPEV), Switzerland
• Caisse de pensions ECA-RP, Switzerland
• Caisse de prév. des Fonctionnaires de Police & des Etablissements Pénitentiaires, Switzerland
• Caisse de Prévoyance de l'Etat de Genève (CPEG), Switzerland
• Caisse de Prévoyance des Interprètes de Conférence (CPIC), Switzerland
• Caisse de prévoyance du personnel de l'Etat du Valais (CPVAL), Switzerland
• Caisse intercommunale de pensions (CIP), Switzerland
• Caisse paritaire de prévoyance de l'industrie et de la construction (CPPIC), Switzerland
• California State Teachers' Retirement System (CalSTRS)
• CANDRIAM
• CAP Prévoyance, Switzerland
• Catholic Health Initiatives
• CCAP Caisse Cantonale d'Assurance Populaire, Switzerland
• CCLA
• Christian Brothers Investment Services (CBIS)
• Church Commissioners for England
• Church Investment Group
• Church of England Pensions Board
• CIEPP - Caisse Inter-Entreprises de Prévoyance Professionnelle, Switzerland
• Clean Energy Ventures
• Committee on Mission Responsibility Through Investment of the Presbyterian Church U.S.A.
• Conference for Corporate Responsibility Indiana and Michigan
• Congregation of Sisters of St. Agnes
• Congregation of St. Joseph
• Dana Investment Advisors
• Daughters of Charity, Province of St. Louise
• Dignity Health
• Domini Impact Investments LLC
• Dominican Sisters of San Rafael
• Dominican Sisters of Sparkill
• ERAFP
• Etablissement Cantonal d'Assurance (ECA VAUD), Switzerland
• Ethos Foundation, Switzerland
• Figure 8 Investment Strategies
• First Affirmative Financial Network
• Fondation de la métallurgie vaudoise du bâtiment (FMVB), Switzerland
• Fondation de prévoyance Artes & Comoedia, Switzerland
• Fondation de prévoyance du Groupe BNP PARIBAS en Suisse, Switzerland
• Fondation Leenaards, Switzerland
• Fonds de Prévoyance de CA Indosuez (Suisse) SA, Switzerland
• Friends Fiduciary Corporation
• FSPA
• Harvard University Endowment
• Hermes EOS
• Hermes Investment Management
• Impacts Investors
• Impax Asset Management
• ICCR (Interfaith Center on Corporate Responsibility)
• Ircantec
• Jantz Management LLC
• Jesuits of the US Central and Southern Province
• JLens Investor Network
• Jupiter Asset Management
• LAPFF (the Local Authority Pension Fund Forum)
• Leadership Team - Felician Sisters of North America
• Legal & General Investment Management
• Macroclimate LLC
• Manulife Investment Management
• Maryknoll Sisters
• Maryland Province of the Society of Jesus
• Mercy Investment Services, Inc.
• Miller/Howard Investments, Inc.
• MN
• Natural Investments
• NEI Investments
• Nest Sammelstiftung, Switzerland
• New York City Comptroller's Office
• Newground Social Investment
• NorthStar Asset Management, Inc.
• Northwest Coalition for Responsible Investment
• Ostrum
• Pax World Funds
• Pensionskasse Basel-Stadt, Switzerland
• Pensionskasse Bühler AG Uzwil, Switzerland
• Pensionskasse Caritas, Switzerland
• Pensionskasse der Stadt Winterthur, Switzerland
• Pensionskasse Pro Infirmis, Switzerland
• Pensionskasse Römisch-katholische Landeskirche des Kantons Luzern, Switzerland
• Pensionskasse SRG SSR, Switzerland
• Pensionskasse Stadt Luzern, Switzerland
• Pensionskasse Unia, Switzerland
• Prévoyance Santé Valais (PRESV), Switzerland
• prévoyance.ne, Switzerland
• Profelia Fondation de prévoyance, Switzerland
• Prosperita Stiftung für die berufliche Vorsorge, Switzerland
• Providence St. Joseph Health
• Rathbone Brothers Plc
• Region VI Coalition for Responsible Investment
• Religious of the Sacred Heart of Mary WAP
• Retraites Populaires, Switzerland
• Riverwater Partners
• RLAM
• Robeco
• Sarasin & Partners LLP
• School Sisters of Notre Dame Cooperative Investment Fund
• Secunda Sammelstiftung, Switzerland
• Seventh Generation Interfaith Inc.
• SHARE (Shareholder Association for Research & Education)
• SharePower Responsible Investing
• Sisters for Notre Dame de Namur Base Communities
• Sisters of Charity of Nazareth
• Sisters of Mary Reparatrix
• Sisters of Saint Joseph of Chestnut Hill, Philadelphia, PA
• Sisters of St. Dominic of Caldwell, NJ
• Sisters of St. Dominic/Racine Dominicans
• Sisters of St. Francis of Philadelphia
• Sisters of St. Joseph of Orange
• Sisters of the Holy Cross
• Sisters of the Humility of Mary
• Sisters of the Presentation of the BVM of Aberdeen SD
• Skye Advisors LLC
• Socially Responsible Investment Coalition
• St. Galler Pensionskasse, Switzerland
• Stiftung Abendrot, Switzerland
• Storebrand Asset Management
• Terre des hommes, Switzerland
• The Episcopal Church (DFMS)
• The Province of Saint Joseph of the Capuchin Order
• The Sustainability Group of Loring, Wolcott & Coolidge
• Tri-State Coalition for Responsible Investment
• Trillium Asset Management
• Trinity Health
• Unitarian Universalist Association
• Université de Genève (UNIGE), Switzerland
• USA Midwest Province Jesuits
• USA Northeast Province of the Society of Jesus
• USA West Province of the Society of Jesus
• Walden Asset Management/ Boston Trust
• Wespath Benefits and Investments
• Wetherby Asset Management