[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2801 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 2801
To establish a durable framework for achieving long-term reductions in
methane emissions from the oil and gas sector through advanced
detection, measurement, and abatement technologies and practices, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 22, 2021
Mr. Peters introduced the following bill; which was referred to the
Committee on Energy and Commerce, and in addition to the Committee on
Foreign Affairs, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To establish a durable framework for achieving long-term reductions in
methane emissions from the oil and gas sector through advanced
detection, measurement, and abatement technologies and practices, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Methane Emissions Technology to
Help Achieve Net-zero Emissions Act of 2021'' or the ``METHANE Act of
2021''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Covered facility.--The term ``covered facility'' means
a facility on the list in effect under section 3(a).
(3) Emissions reduction target.--The term ``emissions
reduction target'' means the aggregate level of methane
intensity of the regulated segments corresponding to a
reduction of total methane emissions by 90 percent by 2030,
relative to 2015 levels.
(4) Methane intensity.--The term ``methane intensity''
means the unitless ratio of methane emissions to the methane
content of natural gas throughput.
(5) Regulated segment.--The term ``regulated segment''
means each of the segments described in section 98.230(a) of
title 40, Code of Federal Regulations, as in effect on the date
of enactment of this Act.
(6) Routine flaring.--The term ``routine flaring''--
(A) means flaring of natural gas during normal oil
and natural gas production operations in the absence of
sufficient facilities to reinject the produced gas,
utilize it onsite, or dispatch it to a market; and
(B) excludes flaring of natural gas that is
required to ensure safe operation of the covered
facility due to an unforeseen condition.
SEC. 3. METHANE INTENSITY STANDARDS.
(a) List of Covered Facilities.--
(1) Initial list.--Not later than 2 years after the date of
enactment of this Act, the Administrator shall list the
facilities that are subject to this Act, which shall include,
at a minimum, the facilities that are subject to the
requirements of section 98.230(a) of title 40, Code of Federal
Regulations, as in effect on the date of enactment of this Act.
(2) Review and revision.--The Administrator shall
periodically review and revise the list of covered facilities
under this subsection as necessary to ensure sufficient
coverage of methane emissions from the regulated segments to
meet the emissions reduction target.
(b) Categorization of Covered Facilities and Regulated Emissions.--
For purposes of establishing methane intensity standards under this
section, the Administrator shall--
(1) group the types of covered facilities within a
regulated segment into categories; and
(2) base the standards on the types of methane emissions at
the category of covered facility, including vented emissions,
fugitive emissions, and emissions from incomplete combustion.
(c) Establishment of Standards.--
(1) In general.--The Administrator shall establish methane
intensity standards for covered facilities in each of the
regulated segments.
(2) Initial standards.--Not later than 4 years after the
date of enactment of this Act, the Administrator shall
establish the initial methane intensity standards required by
paragraph (1). Such initial standards for each category of
covered facilities shall--
(A) be equal to the top quartile of methane
intensity performance in the applicable regulated
segment, as determined by the Administrator, taking
into account the findings of the studies under section
7(a)(1);
(B) ensure that the aggregate methane intensity
from the regulated segments does not exceed the
emissions reduction target; and
(C) use the methodologies for calculating methane
intensity for each regulated segment described in the
``Natural Gas Sustainability Initiative Protocol'',
version 1.0, dated February 2021, with such revisions
as the Administrator determines are necessary due to
the findings of the studies under section 7(a).
(3) Compliance period.--The initial and subsequent methane
intensity standards required by paragraph (1) shall each apply
for a three-year period.
(4) Increasingly stringent standards.--The methane
intensity standards under this section shall--
(A) be increasingly stringent in each successive
three-year period, consistent with ensuring that
aggregate methane intensity of the regulated segments
does not exceed the emissions reduction target; and
(B) be more stringent for each successive three-
year period, as appropriate based on advancements in
methane-related monitoring, detection, repair, or
abatement methodologies.
(d) New and Existing Covered Facilities.--In establishing standards
under this section, the Administrator may subcategorize new and
existing covered facilities.
(e) Determination of Compliance.--On an annual basis, the
Administrator shall determine each covered facility's compliance with
the applicable methane intensity standard under this section.
SEC. 4. CONTROLLING UNNECESSARY FLARING.
As part of the process of establishing methane intensity standards
under section 3, the Administrator shall establish regulations that
prohibit routine flaring of natural gas from covered facilities such
that--
(1) greenhouse gas emissions from nationwide routine
flaring shall be reduced by at least 80 percent below 2017
levels not later than the end of calendar year 2028; and
(2) greenhouse gas emissions from nationwide routine gas
flaring shall be reduced by 100 percent below 2017 levels not
later than the end of calendar year 2030.
SEC. 5. EMISSION DETECTION, MEASUREMENT, AND REPORTING.
(a) Leak Detection and Repair Plans.--The Administrator shall
require the owner or operator of each covered facility to submit to the
Administrator a plan for methane leak detection and repair, which shall
specify--
(1) the leak detection technology or technologies to be
used;
(2) the frequency of inspections;
(3) the repair schedule for all detected leaks; and
(4) the procedures for biannual review for the plan to
ensure the plan incorporates advancements in leak detection and
repair technologies and practices.
(b) Emissions Measurement and Reporting Requirements.--
(1) In general.--The Administrator shall establish
requirements for covered facilities for the measurement and
reporting of methane emissions.
(2) Emission factors and activity data.--In determining the
requirements related to emission factors, activity data, and
other estimation methodologies, the Administrator shall
consider the studies completed under section 7(a)(2).
(c) Alternative Emissions Measurement Methodologies.--
(1) In general.--The Administrator shall approve an
alternative emissions measurement methodology for a covered
facility if the owner or operator of the facility demonstrates
that such alternative methodology will improve the accuracy of
measurements, including through more frequent measurements and
application of more sensitive emission detection technologies.
(2) Framework for evaluation.--The Administrator shall
establish a clear, transparent, and scientifically rigorous
framework for evaluating the accuracy of proposed alternative
methodologies, which shall include detailed guidance on--
(A) field testing and empirical data requirements
for establishing the accuracy of any proposed emission
factors or activity data;
(B) computer simulation and modeling requirements;
and
(C) procedures for submitting and obtaining
approval of an alternative methodology.
(3) Scope of approval.--If the Administrator approves an
alternative methodology for a covered facility, other covered
facilities in the same category may use the methodology.
(d) Review.--At least every 3 years, the Administrator shall review
and, as appropriate, revise the requirements established under this
section, taking into account advancements in technologies and
practices.
SEC. 6. CONDITIONAL TRADABLE CREDITS PROGRAM.
(a) Determination of Sufficiency of Monitoring, Detection, and
Measurement Technologies.--In establishing, reviewing, and revising the
methane intensity standards under section 3, the Administrator shall
determine whether commercially available detection and measurement
technologies are sufficiently robust to provide the frequency and
accuracy of methane missions monitoring, detection, and measurement to
support a tradable methane intensity credit program described in
subsection (b).
(b) Establishment of Tradable Credits Program.--If the
Administrator makes a positive determination under subsection (a), the
Administrator shall establish a tradable methane intensity credit
program under which--
(1) the Administrator shall issue tradable credits to the
owner or operator of a covered facility that has a methane
intensity lower than the applicable methane intensity standard
under section 3; and
(2) the owner or operator of a covered facility may obtain
and surrender such tradable credits to meet its compliance
obligation under section 3(e), and such tradable credits shall
not constitute nor confer property rights on the holder of such
credits.
(c) Monitoring, Detection, Measurement, Reporting, and
Verification.--The Administrator shall establish such requirements for
monitoring, detection, measurement, reporting, and verification that
the Administrator determines are necessary for the program under
subsection (b).
SEC. 7. STUDIES.
(a) In General.--The Administrator, in coordination with the
Secretary of Energy, shall enter into an agreement with one or more
research institutions to conduct--
(1) a study to identify the top quartile of methane
intensity performance for a statistically representative sample
of covered facilities in each regulated segment;
(2) a study of the accuracy of component-level emission
factors, activity data, and estimation methodologies; and
(3) a study to integrate and reconcile top-down and bottom-
up measurements of methane emissions from a statistically
representative sample of covered facilities in each regulated
segment.
(b) Advancing Detection and Measurement Technologies.--The
Administrator, in coordination with the Secretary of Energy, shall
establish measurement and testing protocols for assessing the
performance of new emission detection technologies, such as stationary
remote sensing devices, vehicle-based sensors, drones, aircraft,
handheld equipment, and satellites in order to facilitate the
development, evaluation, and deployment of such technologies.
SEC. 8. ENFORCEMENT.
The Administrator shall have the same authorities for enforcement
of this Act as the Administrator has under section 113 of the Clean Air
Act (42 U.S.C. 7413) for enforcement of requirements established under
section 111 of such Act (42 U.S.C. 7411), including the same
calculation of monetary penalties.
SEC. 9. JUDICIAL REVIEW.
(a) In General.--A petition for review of action by the
Administrator in promulgating any nationally-applicable requirements
under this Act may be filed only in the Court of Appeals for the
District of Columbia.
(b) Timing of Filing.--Any petition for review under this section
shall be filed within 60 days from the date of publishing such
requirements as a final regulation in the Federal Register, except that
if such petition is based solely on grounds arising after such 60-day
period, then such petition shall be filed within 60 days after such
grounds arise.
SEC. 10. REGISTRY, EMISSION DATABASE, AND DATA VERIFICATION.
(a) Registry.--The Administrator shall establish a registry that
makes it possible to calculate the aggregate methane emissions
intensity of deliveries of natural gas or natural gas products to end-
users or exporters of liquefied natural gas.
(b) Emissions Database.--
(1) In general.--The Administrator shall establish a
national methane emissions database based on the data collected
from the studies described in section 7(a) and the monitoring,
detection, repair, and reporting activities undertaken by the
owners or operators of covered facilities pursuant to the
requirements of this Act.
(2) Public availability of data; limitation.--All data
collected pursuant to this subsection shall be compiled and
made available to the public in a manner that does not identify
the covered facility or the owner or operator providing such
data.
(c) Data Verification.--
(1) In general.--The Administrator shall establish robust
procedures to ensure the accuracy, transparency, consistency,
and completeness of all methane emissions and methane emissions
reduction data collected, reported, and verified pursuant to
this Act.
(2) Consistency.--The procedures under paragraph (1) shall
be consistent with, but may be more stringent than,
International Organization for Standardization Standard 14064-
2.
SEC. 11. INTERNATIONAL COORDINATION.
The Administrator shall engage with the Environmental Protection
Agency's counterpart environmental agencies in other countries to
coordinate a collective effort to reduce methane emissions from the
global oil and natural gas supply chain.
SEC. 12. RELATION TO OTHER STANDARDS.
If the Administrator promulgates requirements under this Act for a
covered facility, the Administrator may not enforce methane emission
performance standards for such facility, or stationary sources within
that facility, under section 111(b) and 111(d) of the Clean Air Act (42
U.S.C. 7411(b) and (d)).
SEC. 13. SAVINGS CLAUSE.
Nothing in this Act--
(1) subject to section 12, exempts covered facilities from
limits on their emissions of air pollutants, as such term is
defined in section 302(g) of the Clean Air Act (42 U.S.C.
7602(g)), including volatile organic compounds and carbon
dioxide; or
(2) preempts the authority of State, local, or Tribal
governments to establish limitations on methane emissions from
covered facilities.
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