[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 514 Introduced in Senate (IS)]
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119th CONGRESS
1st Session
S. 514
To amend the Clean Air Act to modify the Methane Emissions Reduction
Program, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 11, 2025
Mr. Lankford introduced the following bill; which was read twice and
referred to the Committee on Environment and Public Works
_______________________________________________________________________
A BILL
To amend the Clean Air Act to modify the Methane Emissions Reduction
Program, 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 Reduction Program
Clarifications Act of 2025'' or the ``MERP Clarifications Act of
2025''.
SEC. 2. METHANE EMISSIONS AND WASTE REDUCTION INCENTIVE PROGRAM FOR
PETROLEUM AND NATURAL GAS SYSTEMS.
(a) Amendments.--Section 136 of the Clean Air Act (42 U.S.C. 7436)
is amended--
(1) in subsection (f), by adding at the end the following:
``(8) Exemption for small upstream producers.--
``(A) In general.--The Administrator may not,
pursuant to any requirement under this section, impose
a reporting requirement or a charge under this section
on an applicable facility described in subparagraph
(B).
``(B) Applicable facilities described.--An
applicable facility referred to in subparagraphs (A),
(C), and (D) is an applicable facility that, as of
August 16, 2022--
``(i) was generating less than 25,000
metric tons of carbon dioxide equivalent of
greenhouse gases emitted per year; and
``(ii) had 2,500 or fewer full-time
employees.
``(C) No requirement to demonstrate.--The
Administrator may not impose a requirement that an
applicable facility described in subparagraph (B)
demonstrate to the Administrator that the applicable
facility meets the requirements described in that
subparagraph.
``(D) Notification.--
``(i) Notice to facility.--Not later than
60 days after the date of enactment of this
paragraph, the Administrator shall provide
written notice to each applicable facility
described in subparagraph (B) that the
applicable facility is not subject to the
reporting requirements or charges imposed under
this section.
``(ii) Publication.--The Administrator
shall communicate publicly (including through
press releases and messages on the website of
the Environmental Protection Agency) that the
applicable facilities described in subparagraph
(B) are not subject to the reporting
requirements or charges imposed under this
section.
``(9) Exemption for certain producers.--Notwithstanding any
other requirement of this section, the Administrator may not
impose a charge under this section on an applicable facility
during any period in which the applicable facility--
``(A) complies with subpart OOOOb and OOOOc, as
applicable, of part 60 of title 40, Code of Federal
Regulations (or successor regulations); and
``(B) is located in a State in compliance with the
applicable State implementation plan required under
subpart OOOOc of that part (or successor
regulations).'';
(2) by striking subsection (g) and inserting the following:
``(g) Period.--The Administrator may not impose or collect the
charge under subsection (c) until January 1 of the first calendar year
that begins after the date on which the Administrator submits to the
Committee on Environment and Public Works of the Senate and the
Committee on Energy and Commerce of the House of Representatives a
written notice that each of the following requirements has been met for
a period of not less than 1 year before that January 1:
``(1) The grants authorized under subsections (a) and (b)
have been fully disbursed to all eligible recipients.
``(2) The revisions to subpart W of part 98 of title 40,
Code of Federal Regulations, that are required under this
section--
``(A) ensure the use of emissions factors that have
been validated by the Administrator and posted to the
website of the Administrator; and
``(B) have been finalized.'';
(3) by redesignating subsection (i) as subsection (k);
(4) by inserting after subsection (h) the following:
``(i) Public Comment Period.--Except as provided in section 2(c) of
the MERP Clarifications Act of 2025, any proposed regulation, rule,
guidance, or directive with respect to the implementation of this
section from the Administrator, the Executive Office of the President,
or another Federal agency shall, consistent with subchapter II of
chapter 5, and chapter 7, of title 5, United States Code (commonly
known as the `Administrative Procedure Act'), be subject to a period of
public comment of not less than 90 days.
``(j) Dispute Resolution Procedure.--Not later than 60 days after
the date of enactment of this subsection, the Administrator shall,
consistent with subchapter II of chapter 5, and chapter 7, of title 5,
United States Code (commonly known as the `Administrative Procedure
Act'), propose a rule establishing an expedited process for an
applicable facility to appeal or dispute the amount of a charge imposed
under this section that is separate and apart from any other such
process under this Act.''; and
(5) by adding at the end the following:
``(l) Sunset.--
``(1) Termination of effectiveness.--The authority provided
under this section terminates on December 31, 2034.
``(2) Continued imposition of waste charge.--
``(A) In general.--If this section is not
reauthorized by December 31, 2034, the Administrator
shall immediately cease all activities with respect to
the imposition of the charge under this section.
``(B) Enforcement.--
``(i) In general.--If the Administrator or
the head of any other applicable Federal agency
carries out any authority under this section
after the date described in subparagraph (A), a
party that suffers likely harm from the
carrying out of that authority may seek
financial compensation from the Federal
Government in the appropriate Federal district
court.
``(ii) Expedited relief.--A Federal
district court shall expedite the consideration
of an action described in clause (i) brought by
the owner of an applicable facility with 2,500
or fewer full-time employees.
``(3) Rescission.--On December 31, 2034, there is rescinded
the unobligated balance of amounts made available under
subsections (a) and (b) as of that date.''.
(b) Description of Requirements and Calculations.--
(1) In general.--Not later than 60 days after the date of
enactment of this Act, the Administrator of the Environmental
Protection Agency (referred to in this section as the
``Administrator'') shall make publicly available, including on
the website of the Environmental Protection Agency, an
Administrator's Order that includes the following information:
(A) Consistent with the Plain Writing Act of 2010
(5 U.S.C. 301 note; Public Law 111-274) and Executive
Orders 12866 (5 U.S.C. 601 note; relating to regulatory
planning and review), 12988 (28 U.S.C. 519 note;
relating to civil justice reform), and 13563 (5 U.S.C.
601 note; relating to improving regulation and
regulatory review), an easily understandable
explanation of--
(i) the methods used for calculating, for
purposes of section 136 of the Clean Air Act
(42 U.S.C. 7436)--
(I) the carbon dioxide equivalent
of greenhouse gases emitted;
(II) methane intensity; and
(III) other emissions factors; and
(ii) the key calculations necessary to
understand the requirements of the program
under that section, including the conversion
from carbon dioxide emissions to methane
emissions necessary for determining the amount
of the charge imposed and collected under that
section.
(B) The methods and mechanisms (including the
methods and mechanisms described in subparagraph
(A)(i), as applicable) used to calculate, for each
category described in paragraphs (1) through (9) of
subsection (d) of that section, the charge imposed and
collected pursuant to subsection (c) of that section.
(C) With respect to the development of any
information described in subparagraphs (A)(i) and (B)--
(i) a list of the names, including titles,
occupations, and biographies, of all
consultants (including international and
domestic consultants) that assisted in that
development;
(ii)(I) a list of the academic institutions
(including any international and domestic
academic institutions) that assisted in that
development; and
(II) points of contact for each such
academic institution;
(iii)(I) a list of the nongovernmental
institutions (including any international and
domestic nongovernmental institutions) that
assisted in that development; and
(II) points of contact for each such
nongovernmental institution; and
(iv) a list of any other organizations the
resources or personnel of which were used in
any way in that development.
(D) A description, including citations and
hyperlinks, of all studies used by the Administrator to
develop the information described in subparagraphs
(A)(i) and (B).
(E) A summary of all other information collected
and used by the Administrator to develop the
information described in subparagraphs (A)(i) and (B).
(2) Requirements.--In carrying out paragraph (1), the
Administrator shall, in consultation with the owners and
operators of applicable facilities (as defined in section
136(d) of the Clean Air Act (42 U.S.C. 7436(d)) with fewer than
2,500 full-time employees, ensure that the documentation
required under that paragraph will allow operators subject to a
reporting requirement or charge under section 136 of the Clean
Air Act (42 U.S.C. 7436) to clearly understand the reporting
requirements and calculations required under that section.
(c) Rulemaking Requirements.--Except as otherwise provided in this
section or an amendment made by this section, any proposed regulation,
rule, guidance, or other document required under this section or an
amendment made by this section shall be subject to, as applicable--
(1) except as provided for in paragraph (2), the notice and
comment provisions of section 553 of title 5, United States
Code; and
(2) a public comment period of not less than 120 days.
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