S514119th CongressWALLET

MERP Clarifications Act of 2025

Sponsored By: Senator Sen. Lankford, James [R-OK]

Introduced

Summary

Exempts small upstream producers and delays methane charges. This bill would change the Methane Emissions Reduction Incentive Program for petroleum and natural gas systems by carving out small producers, requiring EPA to meet specific transparency and rulemaking steps before any waste charge applies, and setting a sunset with a post-sunset compensation framework.

Show full summary
  • Facilities that emit less than 25,000 metric tons CO2e per year or have 2,500 or fewer full-time employees would be exempt from reporting and charges. EPA must send written notice and publicly confirm non-subject status within 60 days.
  • No waste charge could be collected until EPA verifies for at least one year that grants have been fully disbursed, emission-factor revisions are finalized, and other prerequisites are met. The bill also requires a 90-day public comment period and expedited dispute resolution before fees can start.
  • EPA must publish an Administrator's Order within 60 days explaining how CO2e, methane intensity, and charges are calculated and listing studies and consultants used. The program would terminate on December 31, 2034 unless reauthorized and includes a process for financial claims if activities cease.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Exemptions and clearer rules for producers

This bill would exempt many small oil and gas facilities from MERP reporting and charges. If a facility on August 16, 2022 emitted under 25,000 metric tons CO2e and had 2,500 or fewer full‑time employees, EPA could not require reports or charges and must notify them within 60 days. The bill would also bar charges for facilities that meet certain EPA emissions rules (subparts OOOOb/OOOOc) while their State is in compliance. EPA would have to publish clear calculation methods, list studies and contacts within 60 days, consult with small operators, and propose an expedited appeal process for charge disputes. The bill would lengthen public comment time for most MERP rules to at least 90 or 120 days.

Delay and sunset for methane charge

This bill would stop EPA from imposing or collecting the MERP waste charge until the January 1 after EPA verifies two prerequisites have been met for at least one year and notifies two congressional committees. The prerequisites are full disbursement of grants under subsections (a) and (b) and finalized revisions to subpart W with validated emission factors posted online. The bill would also end the MERP authority on December 31, 2034. If not reauthorized by that date, EPA would have to stop activities, unobligated grant balances would be rescinded, and harmed parties could sue for compensation, with faster court handling for small facilities (2,500 or fewer employees).

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Sponsors & CoSponsors

Sponsor

Sen. Lankford, James [R-OK]

OK • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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