MERP Clarifications Act of 2025

Methane Emissions Reduction Program Clarifications Act of 2025 or the MERP Clarifications Act of 2025 This bill modifies the Methane Emissions Reduction Program, including by exempting certain facilities from methane emission reporting requirements and fees. Under the program, the Environmental Protection Agency (EPA) must (1) provide financial and technical assistance to measure and reduce greenhouse gas emissions, and (2) collect a fee on methane emissions that exceed certain thresholds. The bill exempts certain small upstream facilities from the program's reporting requirements and fees. Specifically, the exemption applies to a facility that, as of August 16, 2022, (1) was emitting less than 25,000 metric tons of carbon dioxide equivalent of greenhouse gases per year, and (2) had 2,500 or fewer full-time employees. The bill also prohibits the EPA from imposing a fee on certain facilities during any period in which the facilities (1) comply with specified emission standards, and (2) are located in states that are complying with their state implementation plans. Further, the bill requires the EPA to disburse all incentive grants under the program and finalize revisions to certain emissions reporting regulations before it collects fees. The EPA must also propose a rule to establish an expedited process for certain facilities to appeal or dispute the amount of fees. Additionally, the EPA must publish specified information about the program, including a clear explanation of the reporting requirements and calculations necessary to understand them. Finally, the bill automatically terminates the program on December 31, 2034.

Source: Congressional Research Service (CRS).