OMB Approves Methane Emission Reduction Final Rule

Yesterday the OMB’s Office of Information and Regulatory Affairs (OIRA) announced that it had approved a final rule for the EPA on “Methane Emissions and Waste Reduction Incentive Program for Petroleum and Natural Gas Systems”. The rulemaking was sent to OIRA on September 9^th, 2024. The notice of proposed rulemaking was published on January 26^th, 2024.

According to the Spring 2024 Unified Agenda entry for this rulemaking:

“The Inflation Reduction Act of 2022 adds section 136, Methane Emissions and Waste Reduction Incentive Program” to Title I of the Clean Air Act. This action would implement provisions of Clean Air Act section 136 that require the EPA to collect an annual Waste Emissions Charge (WEC) on methane emissions from oil and natural gas facilities that exceed specific levels of emissions and methane intensity specified in the IRA. The action would establish methodologies for calculating the amount by which a facility’s reported methane emissions are below or in exceedance of the waste emissions threshold, and the total WEC owed after accounting for netting of emissions from facilities under common ownership or control. It would also implement the three exemptions created by Congress for unreasonable delay of permitting, regulatory compliance, and plugged wells. This action would also establish reporting requirements for the WEC.”

I expect this final rule to be published in the Federal Register before November 20^th, 2024, with the 60-day effective date to fall before Inauguration on January 20^th. That would increase the hoops that the Trump EPA would have to jump through to erase the rule. Publishing after the 20^th would allow Trump to negate the rule with a simple executive order.