METHANE Act of 2021
Bill: H.R.2801 | Sponsor: Rep. Peters, Scott H. (D-CA)
Policy area: Environmental Protection

Summary:
Methane Emissions Technology to Help Achieve Net-zero Emissions Act of 2021 or the METHANE Act of 2021
This bill requires the Environmental Protection Agency (EPA) to establish standards and related requirements to reduce methane emissions from certain oil and gas facilities.
Specifically, the EPA must establish methane intensity standards that become increasingly stringent over time. Initial standards must be established within four years. For purposes of establishing the standards, the EPA must categorize the facilities and base the standards on the types of methane emissions from those categories.
As part of the process of establishing methane intensity standards, the EPA must establish regulations that prohibit routine flaring of natural gas from the facilities such that greenhouse gas emission from nationwide routine flaring are (1) reduced by at least 80% below 2017 levels by 2028, and (2) eliminated by 2030.
In addition, the EPA must determine whether commercially available detection and measurement technologies are sufficiently robust to provide the frequency and accuracy of methane emissions monitoring, detection, and measurement to support a tradable methane intensity credit program. If the EPA determines the technologies are sufficient, then it must establish such a program. Under the program, facilities that emit more than the standards may obtain (e.g., purchase) emission credits from those that emit less. Finally, the EPA must set forth requirements concerning efforts to measure and verify the emission reductions.

To establish a durable framework for achieving long-term reductions in 
    methane emissions from the oil and gas sector through advanced 
 detection, measurement, and abatement technologies and practices, 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 Emissions Technology to 
Help Achieve Net-zero Emissions Act of 2021'' or the ``METHANE Act of 
2021''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Covered facility.--The term ``covered facility'' means 
        a facility on the list in effect under section 3(a).
            (3) Emissions reduction target.--The term ``emissions 
        reduction target'' means the aggregate level of methane 
        intensity of the regulated segments corresponding to a 
        reduction of total methane emissions by 90 percent by 2030, 
        relative to 2015 levels.
            (4) Methane intensity.--The term ``methane intensity'' 
        means the unitless ratio of methane emissions to the methane 
        content of natural gas throughput.
            (5) Regulated segment.--The term ``regulated segment'' 
        means each of the segments described in section 98.230(a) of 
        title 40, Code of Federal Regulations, as in effect on the date 
        of enactment of this Act.
            (6) Routine flaring.--The term ``routine flaring''--
                    (A) means flaring of natural gas during normal oil 
                and natural gas production operations in the absence of 
                sufficient facilities to reinject the produced gas, 
                utilize it onsite, or dispatch it to a market; and
                    (B) excludes flaring of natural gas that is 
                required to ensure safe operation of the covered 
                facility due to an unforeseen condition.

SEC. 3. METHANE INTENSITY STANDARDS.

    (a) List of Covered Facilities.--
            (1) Initial list.--Not later than 2 years after the date of 
        enactment of this Act, the Administrator shall list the 
        facilities that are subject to this Act, which shall include, 
        at a minimum, the facilities that are subject to the 
        requirements of section 98.230(a) of title 40, Code of Federal 
        Regulations, as in effect on the date of enactment of this Act.
            (2) Review and revision.--The Administrator shall 
        periodically review and revise the list of covered facilities 
        under this subsection as necessary to ensure sufficient 
        coverage of methane emissions from the regulated segments to 
        meet the emissions reduction target.
    (b) Categorization of Covered Facilities and Regulated Emissions.--
For purposes of establishing methane intensity standards under this 
section, the Administrator shall--
            (1) group the types of covered facilities within a 
        regulated segment into categories; and
            (2) base the standards on the types of methane emissions at 
        the category of covered facility, including vented emissions, 
        fugitive emissions, and emissions from incomplete combustion.
    (c) Establishment of Standards.--
            (1) In general.--The Administrator shall establish methane 
        intensity standards for covered facilities in each of the 
        regulated segments.
            (2) Initial standards.--Not later than 4 years after the 
        date of enactment of this Act, the Administrator shall 
        establish the initial methane intensity standards required by 
        paragraph (1). Such initial standards for each category of 
        covered facilities shall--
                    (A) be equal to the top quartile of methane 
                intensity performance in the applicable regulated 
                segment, as determined by the Administrator, taking 
                into account the findings of the studies under section 
                7(a)(1);
                    (B) ensure that the aggregate methane intensity 
                from the regulated segments does not exceed the 
                emissions reduction target; and
                    (C) use the methodologies for calculating methane 
                intensity for each regulated segment described in the 
                ``Natural Gas Sustainability Initiative Protocol'', 
                version 1.0, dated February 2021, with such revisions 
                as the Administrator determines are necessary due to 
                the findings of the studies under section 7(a).
            (3) Compliance period.--The initial and subsequent methane 
        intensity standards required by paragraph (1) shall each apply 
        for a three-year period.
            (4) Increasingly stringent standards.--The methane 
        intensity standards under this section shall--
                    (A) be increasingly stringent in each successive 
                three-year period, consistent with ensuring that 
                aggregate methane intensity of the regulated segments 
                does not exceed the emissions reduction target; and
                    (B) be more stringent for each successive three-
                year period, as appropriate based on advancements in 
                methane-related monitoring, detection, repair, or 
                abatement methodologies.
    (d) New and Existing Covered Facilities.--In establishing standards 
under this section, the Administrator may subcategorize new and 
existing covered facilities.
    (e) Determination of Compliance.--On an annual basis, the 
Administrator shall determine each covered facility's compliance with 
the applicable methane intensity standard under this section.

SEC. 4. CONTROLLING UNNECESSARY FLARING.

    As part of the process of establishing methane intensity standards 
under section 3, the Administrator shall establish regulations that 
prohibit routine flaring of natural gas from covered facilities such 
that--
            (1) greenhouse gas emissions from nationwide routine 
        flaring shall be reduced by at least 80 percent below 2017 
        levels not later than the end of calendar year 2028; and
            (2) greenhouse gas emissions from nationwide routine gas 
        flaring shall be reduced by 100 percent below 2017 levels not 
        later than the end of calendar year 2030.

SEC. 5. EMISSION DETECTION, MEASUREMENT, AND REPORTING.

    (a) Leak Detection and Repair Plans.--The Administrator shall 
require the owner or operator of each covered facility to submit to the 
Administrator a plan for methane leak detection and repair, which shall 
specify--
            (1) the leak detection technology or technologies to be 
        used;
            (2) the frequency of inspections;
            (3) the repair schedule for all detected leaks; and
            (4) the procedures for biannual review for the plan to 
        ensure the plan incorporates advancements in leak detection and 
        repair technologies and practices.
    (b) Emissions Measurement and Reporting Requirements.--
            (1) In general.--The Administrator shall establish 
        requirements for covered facilities for the measurement and 
        reporting of methane emissions.
            (2) Emission factors and activity data.--In determining the 
        requirements related to emission factors, activity data, and 
        other estimation methodologies, the Administrator shall 
        consider the studies completed under section 7(a)(2).
    (c) Alternative Emissions Measurement Methodologies.--
            (1) In general.--The Administrator shall approve an 
        alternative emissions measurement methodology for a covered 
        facility if the owner or operator of the facility demonstrates 
        that such alternative methodology will improve the accuracy of 
        measurements, including through more frequent measurements and 
        application of more sensitive emission detection technologies.
            (2) Framework for evaluation.--The Administrator shall 
        establish a clear, transparent, and scientifically rigorous 
        framework for evaluating the accuracy of proposed alternative 
        methodologies, which shall include detailed guidance on--
                    (A) field testing and empirical data requirements 
                for establishing the accuracy of any proposed emission 
                factors or activity data;
                    (B) computer simulation and modeling requirements; 
                and
                    (C) procedures for submitting and obtaining 
                approval of an alternative methodology.
            (3) Scope of approval.--If the Administrator approves an 
        alternative methodology for a covered facility, other covered 
        facilities in the same category may use the methodology.
    (d) Review.--At least every 3 years, the Administrator shall review 
and, as appropriate, revise the requirements established under this 
section, taking into account advancements in technologies and 
practices.

SEC. 6. CONDITIONAL TRADABLE CREDITS PROGRAM.

    (a) Determination of Sufficiency of Monitoring, Detection, and 
Measurement Technologies.--In establishing, reviewing, and revising the 
methane intensity standards under section 3, the Administrator shall 
determine whether commercially available detection and measurement 
technologies are sufficiently robust to provide the frequency and 
accuracy of methane missions monitoring, detection, and measurement to 
support a tradable methane intensity credit program described in 
subsection (b).
    (b) Establishment of Tradable Credits Program.--If the 
Administrator makes a positive determination under subsection (a), the 
Administrator shall establish a tradable methane intensity credit 
program under which--
            (1) the Administrator shall issue tradable credits to the 
        owner or operator of a covered facility that has a methane 
        intensity lower than the applicable methane intensity standard 
        under section 3; and
            (2) the owner or operator of a covered facility may obtain 
        and surrender such tradable credits to meet its compliance 
        obligation under section 3(e), and such tradable credits shall 
        not constitute nor confer property rights on the holder of such 
        credits.
    (c) Monitoring, Detection, Measurement, Reporting, and 
Verification.--The Administrator shall establish such requirements for 
monitoring, detection, measurement, reporting, and verification that 
the Administrator determines are necessary for the program under 
subsection (b).

SEC. 7. STUDIES.

    (a) In General.--The Administrator, in coordination with the 
Secretary of Energy, shall enter into an agreement with one or more 
research institutions to conduct--
            (1) a study to identify the top quartile of methane 
        intensity performance for a statistically representative sample 
        of covered facilities in each regulated segment;
            (2) a study of the accuracy of component-level emission 
        factors, activity data, and estimation methodologies; and
            (3) a study to integrate and reconcile top-down and bottom-
        up measurements of methane emissions from a statistically 
        representative sample of covered facilities in each regulated 
        segment.
    (b) Advancing Detection and Measurement Technologies.--The 
Administrator, in coordination with the Secretary of Energy, shall 
establish measurement and testing protocols for assessing the 
performance of new emission detection technologies, such as stationary 
remote sensing devices, vehicle-based sensors, drones, aircraft, 
handheld equipment, and satellites in order to facilitate the 
development, evaluation, and deployment of such technologies.

SEC. 8. ENFORCEMENT.

    The Administrator shall have the same authorities for enforcement 
of this Act as the Administrator has under section 113 of the Clean Air 
Act (42 U.S.C. 7413) for enforcement of requirements established under 
section 111 of such Act (42 U.S.C. 7411), including the same 
calculation of monetary penalties.

SEC. 9. JUDICIAL REVIEW.

    (a) In General.--A petition for review of action by the 
Administrator in promulgating any nationally-applicable requirements 
under this Act may be filed only in the Court of Appeals for the 
District of Columbia.
    (b) Timing of Filing.--Any petition for review under this section 
shall be filed within 60 days from the date of publishing such 
requirements as a final regulation in the Federal Register, except that 
if such petition is based solely on grounds arising after such 60-day 
period, then such petition shall be filed within 60 days after such 
grounds arise.

SEC. 10. REGISTRY, EMISSION DATABASE, AND DATA VERIFICATION.

    (a) Registry.--The Administrator shall establish a registry that 
makes it possible to calculate the aggregate methane emissions 
intensity of deliveries of natural gas or natural gas products to end-
users or exporters of liquefied natural gas.
    (b) Emissions Database.--
            (1) In general.--The Administrator shall establish a 
        national methane emissions database based on the data collected 
        from the studies described in section 7(a) and the monitoring, 
        detection, repair, and reporting activities undertaken by the 
        owners or operators of covered facilities pursuant to the 
        requirements of this Act.
            (2) Public availability of data; limitation.--All data 
        collected pursuant to this subsection shall be compiled and 
        made available to the public in a manner that does not identify 
        the covered facility or the owner or operator providing such 
        data.
    (c) Data Verification.--
            (1) In general.--The Administrator shall establish robust 
        procedures to ensure the accuracy, transparency, consistency, 
        and completeness of all methane emissions and methane emissions 
        reduction data collected, reported, and verified pursuant to 
        this Act.
            (2) Consistency.--The procedures under paragraph (1) shall 
        be consistent with, but may be more stringent than, 
        International Organization for Standardization Standard 14064-
        2.

SEC. 11. INTERNATIONAL COORDINATION.

    The Administrator shall engage with the Environmental Protection 
Agency's counterpart environmental agencies in other countries to 
coordinate a collective effort to reduce methane emissions from the 
global oil and natural gas supply chain.

SEC. 12. RELATION TO OTHER STANDARDS.

    If the Administrator promulgates requirements under this Act for a 
covered facility, the Administrator may not enforce methane emission 
performance standards for such facility, or stationary sources within 
that facility, under section 111(b) and 111(d) of the Clean Air Act (42 
U.S.C. 7411(b) and (d)).

SEC. 13. SAVINGS CLAUSE.

    Nothing in this Act--
            (1) subject to section 12, exempts covered facilities from 
        limits on their emissions of air pollutants, as such term is 
        defined in section 302(g) of the Clean Air Act (42 U.S.C. 
        7602(g)), including volatile organic compounds and carbon 
        dioxide; or
            (2) preempts the authority of State, local, or Tribal 
        governments to establish limitations on methane emissions from 
        covered facilities.
                                 <all>