42 USC 7436 - Methane emissions and waste reduction incentive program for petroleum and natural gas systems

U.S Code last checked for updates: Nov 22, 2024

§ 7436.

Methane emissions and waste reduction incentive program for petroleum and natural gas systems

(a)

Incentives for methane mitigation and monitoring

In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $850,000,000, to remain available until September 30, 2028—

(1)

for grants, rebates, contracts, loans, and other activities of the Environmental Protection Agency for the purposes of providing financial and technical assistance to owners and operators of applicable facilities to prepare and submit greenhouse gas reports under subpart W of part 98 of title 40, Code of Federal Regulations;

(2)

for grants, rebates, contracts, loans, and other activities of the Environmental Protection Agency authorized under subsections (a) through (c) of section 7403 of this title for methane emissions monitoring;

(3)

for grants, rebates, contracts, loans, and other activities of the Environmental Protection Agency for the purposes of providing financial and technical assistance to reduce methane and other greenhouse gas emissions from petroleum and natural gas systems, mitigate legacy air pollution from petroleum and natural gas systems, and provide funding for—

(A)

improving climate resiliency of communities and petroleum and natural gas systems;

(B)

improving and deploying industrial equipment and processes that reduce methane and other greenhouse gas emissions and waste;

(C)

supporting innovation in reducing methane and other greenhouse gas emissions and waste from petroleum and natural gas systems;

(D)

permanently shutting in and plugging wells on non-Federal land;

(E)

mitigating health effects of methane and other greenhouse gas emissions, and legacy air pollution from petroleum and natural gas systems in low-income and disadvantaged communities; and

(F)

supporting environmental restoration; and

(4)

to cover all direct and indirect costs required to administer this section, prepare inventories, gather empirical data, and track emissions.

(b)

Incentives for methane mitigation from conventional wells

(c)

Waste emissions charge

(d)

Applicable facility

For purposes of this section, the term “applicable facility” means a facility within the following industry segments, as defined in subpart W of part 98 of title 40, Code of Federal Regulations:

(1)

Offshore petroleum and natural gas production.

(2)

Onshore petroleum and natural gas production.

(3)

Onshore natural gas processing.

(4)

Onshore natural gas transmission compression.

(5)

Underground natural gas storage.

(6)

Liquefied natural gas storage.

(7)

Liquefied natural gas import and export equipment.

(8)

Onshore petroleum and natural gas gathering and boosting.

(9)

Onshore natural gas transmission pipeline.

(e)

Charge amount

The amount of a charge under subsection (c) for an applicable facility shall be equal to the product obtained by multiplying—

(1)

the number of metric tons of methane emissions reported pursuant to subpart W of part 98 of title 40, Code of Federal Regulations, for the applicable facility that exceed the applicable annual waste emissions threshold listed in subsection (f) during the previous reporting period; and

(2)

(A)

$900 for emissions reported for calendar year 2024;

(B)

$1,200 for emissions reported for calendar year 2025; or

(C)

$1,500 for emissions reported for calendar year 2026 and each year thereafter.

(f)

Waste emissions threshold

(1)

Petroleum and natural gas production

With respect to imposing and collecting the charge under subsection (c) for an applicable facility in an industry segment listed in paragraph (1) or (2) of subsection (d), the Administrator shall impose and collect the charge on the reported metric tons of methane emissions from such facility that exceed—

(A)

0.20 percent of the natural gas sent to sale from such facility; or

(B)

10 metric tons of methane per million barrels of oil sent to sale from such facility, if such facility sent no natural gas to sale.

(2)

Nonproduction petroleum and natural gas systems

(3)

Natural gas transmission

(4)

Common ownership or control

(5)

Exemption

(6)

Exemption for regulatory compliance

(A)

In general

Charges shall not be imposed pursuant to subsection (c) on an applicable facility that is subject to and in compliance with methane emissions requirements pursuant to subsections (b) and (d) of section 7411 of this title upon a determination by the Administrator that—

(i)

methane emissions standards and plans pursuant to subsections (b) and (d) of section 7411 of this title have been approved and are in effect in all States with respect to the applicable facilities; and

(ii)

compliance with the requirements described in clause (i) will result in equivalent or greater emissions reductions as would be achieved by the proposed rule of the Administrator entitled “Standards of Performance for New, Reconstructed, and Modified Sources and Emissions Guidelines for Existing Sources: Oil and Natural Gas Sector Climate Review” (86 Fed. Reg. 63110 (November 15, 2021)), if such rule had been finalized and implemented.

(B)

Resumption of charge

(7)

Plugged wells

(g)

Period

(h)

Reporting

(i)

Definition of greenhouse gas

(July 14, 1955, ch. 360, title I, § 136, as added Pub. L. 117–169, title VI, § 60113, Aug. 16, 2022, 136 Stat. 2073.)

cite as: 42 USC 7436