The "MERP Clarifications Act of 2025" amends the Clean Air Act to modify the Methane Emissions Reduction Program by exempting certain small producers, delaying the methane charge implementation, requiring transparency in emissions calculations, and sunsetting the program by 2035.
James Lankford
Senator
OK
The "MERP Clarifications Act of 2025" amends the Clean Air Act to modify the Methane Emissions Reduction Program by exempting certain small oil and gas producers from methane emission reporting requirements and charges, delaying the methane charge until grants are distributed and reporting rules are finalized. It also requires a public comment period for related regulations and mandates the EPA to establish an expedited appeal process for facilities disputing the methane charge. The authority provided under this section sunsets on December 31, 2034.
Methane Emissions Reduction Program Overhaul: Breaks for Small Producers, Delays, and a 2034 Sunset
The "Methane Emissions Reduction Program Clarifications Act of 2025" (MERP Clarifications Act) throws a wrench into the existing Methane Emissions Reduction Program, originally part of the Clean Air Act. This bill, amending Section 136, makes significant changes, including exemptions for smaller oil and gas operations, a delayed start to methane charges, and a complete program shutdown by the end of 2034.
Small Guys Get a Pass
One major shift is the exemption for smaller oil and gas producers. If a company produces less than 25,000 metric tons of carbon dioxide equivalent of greenhouse gases annually and had 2,500 or fewer full-time employees back in August 2022, they're off the hook for both reporting methane emissions and paying the related charges (SEC. 2). The EPA isn't even allowed to ask these companies to prove they qualify. Think of a family-run drilling operation – they might be completely exempt, while a larger, newer company with the same emissions could be facing significant fees.
Pumping the Brakes on Charges
The bill also puts the brakes on the methane charge. It won't kick in until after the EPA confirms two things: all the grant money for methane reduction has been handed out, and they've finalized revisions to the emissions reporting rules (40 CFR part 98, subpart W), which includes making sure the emission factors used are solid (SEC. 2). This delay could give companies more time to adjust, but it also means continued methane emissions in the meantime. Additionally, if your facility is already following federal regulations (40 CFR part 60, subparts OOOOb and OOOOc) and your state is on board with those regulations, you're exempt from the charge (SEC. 2).
The Clock is Ticking
Perhaps the biggest deal is the sunset clause. The whole program, including the methane charge, goes poof on December 31, 2034 (SEC. 2). If it's not renewed, the EPA has to stop charging, and anyone who feels they were wrongly charged after that date can sue the government for compensation. This creates a hard deadline and raises questions about the long-term commitment to methane reduction.
Transparency and Appeals
The bill also focuses on making the EPA's process more transparent. Within 60 days, the EPA must publish a detailed explanation of how they calculate emissions and the methane charge, including a list of all the consultants and organizations that helped them (SEC. 2). Any new regulations or rules related to this section will also face a minimum 90-day public comment period, with some requiring 120 days (SEC. 2). Plus, the EPA has to create a fast-track process for companies to appeal their methane charge bills within 60 days of the rule being proposed (SEC. 2). While this could improve accountability, it could also be used to drag out the process or challenge legitimate charges.