Methane Waste Prevention Act of 2021
Bill: H.R.1492 | Sponsor: Rep. DeGette, Diana (D-CO)
Policy area: Energy

Summary:
Methane Waste Prevention Act of 2021
This bill establishes requirements to reduce methane emissions from the oil and natural gas sector. Methane is emitted during the production and transport of coal, natural gas, and oil.
Specifically, the Environmental Protection Agency (EPA) must issue regulations that require the sector to reduce methane emissions over time. By 2025, methane emissions must be at least 65% below 2012 emissions. By 2030, the emissions must be at least 90% below 2012 emissions.
The Department of the Interior must also establish regulations to reduce and prevent the waste of natural gas on federal land and Indian lands, including waste from venting, flaring, and fugitive releases. The regulations must include consistent enforcement mechanisms for any oil or gas operations that are not in compliance.

To prevent methane waste and pollution from oil and gas operations, and 
                          for other purposes.


 


    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

     This Act may be cited as the ``Methane Waste Prevention Act of 
2021''.

SEC. 2. CONTROLLING METHANE EMISSIONS FROM THE OIL AND NATURAL GAS 
              SECTOR.

    (a) National Goals.--The goals of this section are to steadily 
reduce the quantity of United States methane emissions from the oil and 
natural gas sector such that--
            (1) in calendar year 2025, the quantity of United States 
        methane emissions from the oil and natural gas sector is at 
        least 65 percent below calendar year 2012 emissions; and
            (2) in calendar year 2030, the quantity of United States 
        methane emissions from the oil and natural gas sector is at 
        least 90 percent below calendar year 2012 emissions.
    (b) Regulations To Meet the National Goals.--
            (1) In general.--The Administrator shall issue regulations 
        pursuant to the existing authority of the Administrator under 
        section 111 of the Clean Air Act (42 U.S.C. 7411) to control 
        methane emissions from the oil and natural gas sector to 
        achieve the national goals described in subsection (a).
            (2) Covered sources.--The regulations promulgated pursuant 
        to this subsection shall apply to sources of methane from every 
        segment of oil and natural gas systems, including oil and 
        natural gas production, processing, transmission, distribution, 
        and storage.
            (3) Meeting the goal for 2025.--
                    (A) Deadline for issuance.--Not later than December 
                31, 2022, the Administrator shall finalize regulations 
                pursuant to the existing authority of the Administrator 
                under sections 111(b) and 111(d) of the Clean Air Act 
                (42 U.S.C. 7411(b), (d)) to achieve the national goal 
                described in subsection (a)(1).
                    (B) Contents.--The regulations required by 
                subparagraph (A) shall include the following:
                            (i) The regulations shall prescribe 
                        procedures for the establishment, 
                        implementation, and enforcement of standards of 
                        performance or design, equipment, work 
                        practice, or operational standards, or 
                        combination thereof, for existing sources and 
                        guidelines for States.
                            (ii) The regulations shall require States 
                        to submit plans in accordance with section 
                        111(d) of the Clean Air Act (42 U.S.C. 7411(d)) 
                        no later than 30 months after the date of 
                        enactment of this Act.
                            (iii) The regulations shall provide for the 
                        Administrator to prescribe, not later than 42 
                        months after the date of enactment of this Act, 
                        a plan in accordance with such section 111(d)--
                                    (I) for a State that fails to 
                                submit a plan by the deadline specified 
                                in clause (ii); or
                                    (II) for a State for which the 
                                Administrator disapproves the State 
                                plan.
            (4) Meeting the goal for 2030.--
                    (A) In general.--Not later than December 31, 2023, 
                the Administrator shall finalize regulations pursuant 
                to the existing authority of the Administrator under 
                sections 111(b) and 111(d) to achieve the national goal 
                described in subsection (a)(2).
                    (B) Contents.--The regulations required by 
                subparagraph (A) shall provide for the establishment, 
                implementation, and enforcement of standards of 
                performance or design, equipment, work practice, or 
                operational standards, or combination thereof, for new 
                sources and existing sources, and guidelines for 
                States, that include requirements for--
                            (i) new and existing natural gas 
                        transmission, gathering, and distribution 
                        pipelines to reduce methane emissions by 
                        application of the best system of emissions 
                        reduction pertaining to venting, flaring, and 
                        leakage reduction;
                            (ii) new sources, and existing sources, 
                        with equipment that handles liquefied natural 
                        gas to reduce methane emissions from that 
                        equipment by application of the best system of 
                        emission reduction;
                            (iii) new and existing offshore petroleum 
                        and natural gas production facilities to reduce 
                        methane emissions by application of the best 
                        system of emission reduction; and
                            (iv) any source addressed under the 
                        regulations promulgated under paragraph (3) for 
                        which the Administrator determines that a more 
                        stringent standard is necessary to achieve the 
                        national goal under subsection (a)(2).
                    (C) Distribution of hydrogen.--In implementing this 
                section, the Administrator shall ensure that any new 
                distribution infrastructure is compatible with the 
                distribution of hydrogen.
    (c) Definitions.--In this section:
            (1) The term ``Administrator'' means the Administrator of 
        the Environmental Protection Agency.
            (2) The phrase ``design, equipment, work practice, or 
        operational standard, or combination thereof'' has the meaning 
        given to such phrase for purposes of section 111(h) of the 
        Clean Air Act (42 U.S.C. 7411(h)).
            (3) The terms ``existing source'', ``new source'', and 
        ``standard of performance'' have the meanings given such terms 
        in section 111(a) of the Clean Air Act (42 U.S.C. 7411(a)).

SEC. 3. GAS WASTE REDUCTION AND ENHANCEMENT OF GAS MEASURING AND 
              REPORTING.

    (a) In General.--Title I of the Federal Oil and Gas Royalty 
Management Act of 1982 (30 U.S.C. 1711 et seq.) is amended by adding at 
the end the following:

``SEC. 118. GAS WASTE REDUCTION AND ENHANCEMENT OF GAS MEASURING AND 
              REPORTING.

    ``(a) Regulations for Preventing and Reducing Waste of Gas Via 
Venting, Flaring, and Fugitive Releases.--
            ``(1) Requirement to issue regulations.--Not later than 2 
        years after the date of enactment of the Methane Waste 
        Prevention Act of 2021, the Secretary shall issue regulations 
        pursuant to the Secretary's authority under the Mineral Leasing 
        Act, the Federal Land Policy and Management Act of 1976, the 
        Indian Mineral Leasing Act of 1938, and other statutes 
        authorizing the Secretary to regulate oil and gas activities on 
        Federal land and Indian lands, that establish requirements for 
        reducing and preventing the waste of gas, including by venting, 
        flaring, and fugitive releases, from covered operations.
            ``(2) Content of regulations.--The regulations shall, with 
        respect to covered operations--
                    ``(A) require that, beginning not later than 1 year 
                after the date of enactment of the Methane Waste 
                Prevention Act of 2021, each operator captures at least 
                85 percent of all gas produced in each year from each 
                onshore well that is subject to a mineral leasing law;
                    ``(B) require that, beginning not later than 5 
                years after the date of enactment of the Methane Waste 
                Prevention Act of 2021, each operator captures at least 
                99 percent of all gas produced in each year from each 
                onshore well that is subject to a mineral leasing law;
                    ``(C) require flaring of gas, rather than venting, 
                in all instances in which gas is not captured;
                    ``(D) require that every application for a permit 
                to drill a production well--
                            ``(i) demonstrate sufficient infrastructure 
                        and capacity is in place to capture the 
                        expected quantity of produced gas from the 
                        well; and
                            ``(ii) be published with an opportunity for 
                        a public comment period of at least 30 days;
                    ``(E) beginning not later than 2 years after the 
                date of enactment of the Methane Waste Prevention Act 
                of 2021, prohibit all new and refractured production 
                wells from venting or flaring;
                    ``(F) require the operator of any covered operation 
                that routinely flares gas before the effective date of 
                a regulation prohibiting flaring issued pursuant to 
                subparagraph (E) to submit a gas capture plan to the 
                Secretary not later than 180 days before such effective 
                date that ensures that such operator will meet the 
                requirements described in subparagraphs (A) and (B);
                    ``(G) set performance standards for newly installed 
                equipment based on modern equipment that minimize gas 
                loss from--
                            ``(i) storage tanks;
                            ``(ii) dehydrators;
                            ``(iii) compressors;
                            ``(iv) open-ended valves or lines; and
                            ``(v) such other equipment as the Secretary 
                        determines appropriate to reduce and prevent 
                        gas release;
                    ``(H) require that operators replace existing 
                equipment within one year of the publication date of 
                performance standards established under subsection (G);
                    ``(I) require the replacement of all gas-actuated 
                pneumatic controllers and pumps with nonemitting 
                equipment not later than 180 days after the date of 
                issuance of the regulation enacted under subparagraph 
                (A);
                    ``(J) set performance standards based on modern 
                procedures and equipment that minimize gas loss from--
                            ``(i) downhole maintenance;
                            ``(ii) liquids unloading;
                            ``(iii) well completion; and
                            ``(iv) such other procedures as the 
                        Secretary determines appropriate to reduce and 
                        prevent gas release;
                    ``(K) require all operators to have leak detection 
                programs with monthly inspections that assess the 
                entire covered operation using an infrared camera or 
                other equipment with methods that provide overall at 
                least equivalent sensitivity and effectiveness in 
                detecting leaks on a timely basis;
                    ``(L) require any leaks found to be repaired 
                promptly, and in any case not later than 4 weeks after 
                the discovery of the leak, except where exceptional 
                circumstances warrant an extension of not more than 8 
                additional weeks; and
                    ``(M) require recordkeeping for--
                            ``(i) equipment maintenance;
                            ``(ii) leak detection and repair;
                            ``(iii) venting events;
                            ``(iv) flaring events; and
                            ``(v) such other operations as the 
                        Secretary determines appropriate to reduce and 
                        prevent gas release.
    ``(b) Gas Measuring, Reporting, and Transparency Requirements.--
            ``(1) In general.--The Secretary shall, not later than one 
        year after the date of enactment of the Methane Waste 
        Prevention Act of 2021, issue regulations requiring each 
        operator to measure and report, with respect to all gas subject 
        to the mineral leasing laws, all such gas produced, consumed on 
        site, or lost through venting, flaring, or fugitive releases.
            ``(2) Measuring and reporting requirements.--To account for 
        all gas referred to in paragraph (1), the Secretary shall issue 
        regulations requiring each operator to--
                    ``(A) install metering devices to measure all 
                flared gas; and
                    ``(B) report to the Secretary the volumes of gas 
                measured pursuant to the requirements of this 
                subsection, including--
                            ``(i) all new measured values for 
                        production and disposition, including vented 
                        and flared volumes; and
                            ``(ii) values for fugitive releases based 
                        on guidelines for their calculation established 
                        by the Secretary in such regulations.
            ``(3) Transparency.--The Secretary shall make all new data 
        produced under the requirements established by the Secretary 
        under this subsection, including calculated fugitive releases 
        and volumes of gas lost to venting and flaring, publicly 
        available through the internet--
                    ``(A) without a fee or other access charge;
                    ``(B) in a searchable, sortable, and downloadable 
                manner, to the extent technically possible; and
                    ``(C) as soon as technically practicable after the 
                report by the operator is filed.
    ``(c) Application.--Except as otherwise specified in this section, 
the requirements established by the Secretary under this section shall 
apply to--
            ``(1) the construction and operation of any covered 
        operation initiated, including the refracturing of existing 
        wells, on or after the date of the issuance of regulations 
        under this section; and
            ``(2) after the end of the 1-year period beginning on the 
        date of the issuance of such regulations, any covered operation 
        initiated before the date of the issuance of such regulations.
    ``(d) Enforcement Mechanisms.--
            ``(1) In general.--The Secretary shall include in the 
        regulations issued under this section consistent enforcement 
        mechanisms for covered operations that are not in compliance 
        with the requirements established by the regulations.
            ``(2) Requirements.--The Secretary shall include in the 
        enforcement mechanisms described in paragraph (1)--
                    ``(A) civil penalties for unauthorized venting and 
                flaring, which shall--
                            ``(i) apply in lieu of the penalties and 
                        related provisions under section 109; and
                            ``(ii) include production restrictions and 
                        civil monetary penalties equivalent to 15 times 
                        the market value of the vented gas and 3 times 
                        the value of the flared gas; and
                    ``(B) civil penalties that apply to noncompliance 
                with other new or existing procedures, which shall--
                            ``(i) apply in addition to or in lieu of 
                        the penalties and related provisions under 
                        section 109;
                            ``(ii) include production restrictions or 
                        monetary penalties, or both; and
                            ``(iii) in the case of monetary penalties, 
                        be proportional to market conditions.
    ``(e) Definitions.--In this section:
            ``(1) Capture.--The term `capture' means the physical 
        containment of natural gas for transportation to market or 
        productive use of natural gas, and includes reinjection and 
        royalty-free on-site uses.
            ``(2) Covered operations.--The term `covered operations' 
        means all oil and gas operations that are subject to mineral 
        leasing law or title V of the Federal Land Policy and 
        Management Act of 1976 (30 U.S.C. 1761 et seq.), regardless of 
        size, including production, storage, gathering, processing, and 
        handling operations.
            ``(3) Flare and flaring.--The terms `flare' and `flaring' 
        mean the intentional and controlled burning of gas that occurs 
        in the course of oil and gas operations to limit release of gas 
        to the atmosphere.
            ``(4) Fugitive release.--The term `fugitive release' means 
        the unintentional and uncontrolled release of gas into the 
        atmosphere in the course of oil and gas operations.
            ``(5) Gas capture plan.--The term `gas capture plan' means 
        a plan that includes specific goals, including equipment and 
        timelines, for capturing, gathering, and processing gas 
        produced under an oil or gas lease.
            ``(6) Gas release.--The term `gas release' includes all gas 
        that is discharged to the atmosphere via venting or fugitive 
        release.
            ``(7) Vent and venting.--The terms `vent' and `venting' 
        mean the intentional and controlled release of gas into the 
        atmosphere in the course of oil and gas operations.''.
    (b) Clerical Amendment.--The table of contents in section 1 of such 
Act is amended by inserting after the item relating to section 117 the 
following:

``Sec. 118. Gas waste reduction and enhancement of gas measuring and 
                            reporting.''.
    (c) Updates.--The Secretary of the Interior shall update the 
regulations required by the amendments made by this section when the 
Secretary determines appropriate, but no less frequently than once 
every five years, to reflect new information regarding gas waste, the 
impacts of that waste, and the availability of technologies and 
performance measures to reduce gas waste.
    (d) Application of Prior Rule.--The final rule entitled ``Waste 
Prevention, Production Subject to Royalties, and Resource 
Conservation'', as published in the Federal Register November 18, 2016 
(81 Fed. Reg. 83008), is hereby reinstated, and each of its provisions 
shall apply unless and until the effective date of a subsequent final 
rule promulgated under the amendment made by subsection (a), or 
promulgated under another applicable authority, that replaces or 
repeals such provision.
    (e) Assessment of Venting, Flaring, and Fugitive Releases.--Not 
later than 180 days after the end of the 1-year period beginning on the 
date the Secretary of the Interior first receives data submitted under 
the requirements established under subsection (b) of section 118 of the 
Federal Oil and Gas Royalty Management Act of 1982, as amended by this 
section, the Secretary shall--
            (1) submit a report to Congress describing--
                    (A) the volume of fugitive releases, and gas 
                consumed or lost by venting and flaring, from covered 
                operations (as those terms are used in such section); 
                and
                    (B) additional regulations the Secretary considers 
                would help further curtail venting, flaring, and 
                fugitive releases, or the rational basis for not 
                issuing such additional regulations if the Secretary 
                considers additional regulations would not be 
                appropriate to further curtail venting, flaring, and 
                fugitive releases; and
            (2) issue regulations described in the report required by 
        paragraph (1)(B) not later than 1 year after the date of the 
        submission of the report.
                                                 Union Calendar No. 491

117th CONGRESS

  2d Session

                               H. R. 1492

                      [Report No. 117-672, Part I]

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