View Rule

The Inflation Reduction Act of 2022 adds section 136, “Methane Emissions and Waste Reduction Incentive Program” to title I of the Clean Air Act. Section 136(c) directs the Administrator to impose and collect a charge for excess methane emissions from applicable facilities that report to the Greenhouse Gas Reporting Program petroleum and natural gas systems source category (40 CFR part 98, subpart W) and that exceed statutorily specified waste emissions thresholds. Section 136(h) requires revisions to the requirements of 40 CFR part 98, subpart W to ensure that reporting and calculation of charges are based on empirical data and accurately reflect total emissions from applicable facilities. The purpose of this action is to amend 40 CFR part 98, subpart W and meet directives set forth in section 136 with respect to the Methane Emissions and Waste Reduction Incentive Program.

Statement of Need:

This rule implements Clean Air Act section 136, which was added by the Inflation Reduction Act of 2022.

Summary of the Legal Basis:

The Inflation Reduction Act of 2022 adds section 136, “Methane Emissions and Waste Reduction Incentive Program” to the Clean Air Act. Section 136(c) directs the Administrator to impose and collect a charge for excess methane emissions from applicable facilities that report to the Greenhouse Gas Reporting Program petroleum and natural gas systems source category (40 CFR part 98, subpart W) and that exceed statutorily specified waste emissions thresholds. Section 136(h) requires revisions to the requirements of 40 CFR part 98, subpart W to ensure that reporting and calculation of charges are based on empirical data and accurately reflect total emissions from applicable facilities. The purpose of this action is to amend 40 CFR part 98, subpart W and meet directives set forth in section 136 with respect to the Methane Emissions and Waste Reduction Incentive Program.

Alternatives:

The EPA will evaluate several options related to calculation of reported emissions and charges and will solicit comment on those options.

Anticipated Costs and Benefits:

The Agency will prepare an analysis to provide the public with estimated potential costs and benefits of this action.

Risks:

EPA is still evaluating the scope and risks associated with a prospective rule.