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Congress·In Committee·S. 514

Sen. Lankford Introduces Bill to Exempt Small Energy Companies from Methane Fees

MERP Clarifications Act of 2025

about 1 year ago·View on Congress.gov

Legislative Progress

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Key Points

  • Small oil and gas producers with fewer than 2,500 employees and lower emissions would be completely exempt from federal methane fees and reporting requirements. The EPA cannot force these companies to prove they qualify — the burden falls on the agency to identify and notify them.

    From policy text

    “The Administrator may not, pursuant to any requirement under this section, impose a reporting requirement or a charge under this section on an applicable facility described in subparagraph (B).”
    View in full text
  • Companies that comply with existing EPA air pollution rules (subparts OOOOb and OOOOc) and are in states with approved implementation plans would also be exempt from methane charges, regardless of size.
  • No methane fees can be collected from any company until all federal emission-reduction grants have been fully distributed and the EPA has finalized validated emissions measurement methods — potentially delaying the start of charges by a year or more.
  • The EPA must publish a plain-English guide within 60 days explaining how it calculates pollution charges, and must disclose every consultant, academic institution, and outside organization that helped develop the measurement methods.
  • The entire methane fee program expires on December 31, 2034. If Congress doesn't renew it, the EPA must immediately stop collecting fees, and companies can sue the government for damages if it continues to charge them after that date.
Energy EnvironmentEconomy Finance

Impact Analysis

Personal Impact

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

State Impacts

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Milestones

2 milestones2 actions
Feb 11, 2025Senate

Read twice and referred to the Committee on Environment and Public Works.

Feb 11, 2025

Introduced in Senate

What Happens Next

Projected impacts based on AI analysis

60 days after enactment

EPA must publish a plain-English guide explaining methane charge calculations and disclose all outside organizations involved

Oil and gas companies will finally get clear guidance on how their pollution fees are calculated, making compliance easier to understand

Source Information

Document Type

Congressional Bill

Official Title

MERP Clarifications Act of 2025

Bill NumberS 514
Congress119th Congress
ChamberSenate
Latest ActionRead twice and referred to the Committee on Environment and Public Works.

Sponsor

Analysis generated by AI. Always verify with official sources.