119-s514

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 514 Introduced in Senate

    (IS) ]

<DOC>

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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