LegisTrack
Back to all bills
S 514119th CongressIn Committee

MERP Clarifications Act of 2025

Introduced: Feb 11, 2025
Standard Summary
Comprehensive overview in 1-2 paragraphs

The MERP Clarifications Act of 2025 would modify the Clean Air Act’s Methane Emissions Reduction Program (MERP) by adding protections and exemptions for small upstream oil and gas producers, delaying when charges can be imposed, and increasing transparency and public participation. It creates eligibility criteria for small facilities to be exempt from MERP reporting and charges, requires certain producers to be exempt while they are in compliance with other federal/state regulations, and ties the imposition of any MERP charge to specific preconditions (such as fully disbursing grants and finalizing updated emission factors). The bill also adds new requirements for public notice, an administrator’s order explaining calculation methods, a public-comment process for implementation rules, an expedited dispute-resolution process for charges, and a sunset provision ending the program (and charges) on December 31, 2034 unless Congress reauthorizes it. If the act sunsets, there are provisions for potential financial compensation to facilities harmed by continued federal actions and for expedited court relief for small facilities. In short, the bill aims to (1) narrow MERP applicability to small producers, (2) require more transparency and public participation in how MERP calculations and charges are developed, (3) delay and condition the imposition of any charges, and (4) create a hard sunset with a mechanism to address harms if the program is not renewed.

Key Points

  • 1Exemption for small upstream producers.
  • 2Exemption for producers in compliance with other regs.
  • 3Preconditions before charging and enhanced transition safeguards.
  • 4Transparency, public comment, and dispute resolution.
  • 5- Administrator’s Order: Within 60 days of enactment, the EPA must publish an easily understandable order explaining how CO2e, methane intensity, and other emission factors are calculated, how charges are calculated for each category, and who contributed to developing these methods (consultants, academic institutions, NGOs, etc.).
  • 6- Public comment: Any proposed regulation, rule, or guidance implementing this section must undergo a public comment period (not less than 90 days for MERP-related actions; 120 days for other rulemaking under APA standards).
  • 7- Expedited dispute process: The bill requires a proposed expedited rulemaking process to appeal or dispute charge amounts under MERP, separable from other MERP processes.
  • 8Sunset and remedies if not reauthorized.

Impact Areas

Primary group/area affected- Small upstream petroleum and natural gas facilities meeting the exemption criteria (fewer than 25,000 metric tons CO2e annually and 2,500 or fewer full-time employees as of August 16, 2022).- Facilities that would otherwise be subject to MERP charges but may be exempted due to compliance with Subparts OOOOb/OOOOc and state SIP requirements.Secondary group/area affected- Larger upstream producers and other facilities within the industry that could be affected by the changes to Subpart W emission factors and the revised calculations.- States and Tribal/territorial environmental programs implementing state implementation plans (SIPs) aligned with Subpart OOOOc.- EPA and other federal agencies involved in administering MERP, regulatory publishing, and the dispute-resolution process.Additional impacts- Increased transparency and public participation in howMERP calculations and charges are developed (publication of methods, stakeholders, and studies).- Potential delay in the timing of MERP charges due to preconditions and extended open comment periods.- A built-in sunset that creates a reauthorization question for Congress and potential legal/financial remedies for facilities harmed after expiration.- Administrative and legal responsibilities for facilities to monitor and respond to public notices and dispute procedures.
Generated by gpt-5-nano on Oct 31, 2025