Summary#
This bill changes how the Methane Emissions Reduction Program (MERP) in the Clean Air Act works. It adds exemptions, delays when the EPA can collect a methane charge, requires public explanations of how charges are calculated, and sets a date when the program ends unless reauthorized. The bill requires the EPA to publish detailed calculation methods, lists of consultants and studies used, and to consult with small operators when preparing those materials.
What it means for you#
- Small upstream oil and gas producers that, as of August 16, 2022, emitted under 25,000 metric tons CO2-equivalent per year and had 2,500 or fewer full-time employees would not have to report or pay the MERP charge. The EPA cannot require those facilities to prove they meet those limits, and must notify them in writing and publicly within 60 days after enactment.
- Facilities that comply with certain existing EPA rules (subparts OOOOb and OOOOc of 40 C.F.R. part 60) and are in States meeting related State Implementation Plan requirements would not be charged under MERP while they remain in compliance.
- The EPA cannot collect the MERP charge until January 1 of the first calendar year after the agency certifies in writing to two Congressional committees that (1) MERP grants have been fully disbursed to eligible recipients and (2) required revisions to emissions reporting rules (subpart W of 40 C.F.R. part 98) are finalized and use EPA-validated emissions factors for at least one year.
- The EPA must publish an Administrator's Order within 60 days of enactment that explains in plain language the methods for calculating greenhouse gas amounts, methane intensity, conversions used to set charges, the studies relied on, and the consultants and institutions that helped develop those methods.
- The bill requires public comment periods for rules and guidance. One provision says proposed actions must have at least 90 days for public comment; another provision requires a public comment period of not less than 120 days for proposed regulations and rulemaking under the Administrative Procedure Act.
- The EPA must propose, within 60 days of enactment, an expedited process for facilities to appeal or dispute the amount of a MERP charge.
- The program authority expires on December 31, 2034. If not reauthorized, the EPA must stop imposing the charge and the bill allows harmed parties to seek financial compensation in federal court. The bill also rescinds unobligated MERP grant balances on that date.
Expenses#
No publicly available information on the direct costs, revenue, or budgetary effects of the changes is included in the provided bill text.
Proponents' View#
No publicly available information in the bill text states proponents' arguments or statements. The bill text describes specific changes intended to provide exemptions, delay charge collection until certain conditions are met, increase transparency about calculations, and require public comment and dispute procedures.
Opponents' View#
No publicly available information in the bill text states opponents' arguments or statements.