Congressional Review Act Revocation of Waste Emissions Charge for Petroleum and Natural Gas Systems: Procedures for Facilitating Compliance, Including Netting and Exemptions

SUPPLEMENTARY INFORMATION:

I. Does this action apply to me?

This action may be relevant to you if you are an owner or operator of a facility in certain segments of the petroleum and natural gas systems industry that reports—or will report—more than 25,000 metric tons (mt) of carbon dioxide equivalent (CO₂ e) pursuant to the requirements codified at 40 CFR part 98 and report emissions under subpart W (Petroleum and Natural Gas Systems) (hereafter referred to as “part 98, subpart W”). The industry segments, as they are defined under part 98, subpart W, to which the 2024 WEC Final Rule may have applied are offshore petroleum and natural gas production, onshore petroleum and natural gas production, onshore natural gas processing, onshore gas transmission compression, underground natural gas storage, liquefied natural gas storage, liquefied natural gas import and export equipment, onshore petroleum and natural gas gathering and boosting, and onshore natural gas transmission pipeline. Revisions to part 98, subpart A, also contained in the 2024 WEC Final Rule, may have applied to all of the aforementioned segments and natural gas distribution, as defined in part 98, subpart W. These categories and entities include, but are not limited to, those listed in table 1 of this preamble:

Table 1 of this preamble is not intended to be exhaustive but rather provides a guide for readers regarding facilities that may have been affected by the 2024 WEC Final Rule. If you have questions regarding the applicability of this action to a particular facility, consult the person listed in the FOR FURTHER INFORMATION CONTACT section.

II. Background and Rationale for This Final Action

On January 26, 2024, the EPA published in the Federal Register (FR) a notice of proposed rulemaking to facilitate implementation of the provisions of the WEC, following the requirements of CAA section 136(c)-(g) (89 FR 5318). The EPA published the 2024 WEC Final Rule in the FR on November 18, 2024 (89 FR 91094) and codified associated regulations at 40 CFR parts 2, 98 (subpart A), and 99.

The United States House of Representatives passed a joint resolution (H.J. Res. 35) on February 26, 2025, disapproving the 2024 WEC Final Rule under the CRA (5 U.S.C. 801 et seq.). The United States Senate passed H.J. Res. 35 on February 27, 2025. President Donald J. Trump signed the joint resolution of disapproval into law as Public Law (Pub. L.) 119-2 on March 14, 2025. Under the joint resolution and by operation of the CRA, the 2024 WEC Final Rule has no legal force or effect.

III. Final Action

This final action revises the CFR to remove the now null amendments that were codified under the 2024 WEC Final Rule. This action removes 40 CFR part 99 (Waste Emissions Charge) and reverts to the text in effect immediately prior to the effective date of the 2024 WEC Final Rule for the amended paragraphs of 40 CFR part 2, subpart B (Public Information—Confidentiality of Business Information) and 40 CFR part 98, subpart A (Mandatory Greenhouse Gas Reporting—General Provisions). The amendments to 40 CFR part 2, subpart B included revisions to 40 CFR 2.301(d) to include references to part 99. The amendments to 40 CFR part 98, subpart A included the addition of 40 CFR 98.3(c)(14), which required additional reporting for facilities subject to part 98, subpart W; the addition of 40 CFR 98.4(o), which specified alternative provisions for responsibility for part 98 report submissions and revisions related to changes in owners and operators for facilities that report under subpart W; revisions to 40 CFR 98.4(g) and (h) to include cross-references to paragraph 98.4(o); and revisions to 40 CFR 98.4(n)(2) to clarify responsibilities following certain types of facility acquisitions.

The EPA is taking this action as a final rule without providing an opportunity for public comment or a public hearing because the EPA finds that the Administrative Procedure Act (APA) “good cause” exemption applies. The EPA has determined that there is good cause here because the correction of the CFR is a ministerial act to effectuate H.J. Res. 35 and the operation of the CRA. The CRA joint resolution was signed on March 14, 2025, at which point the 2024 WEC Final Rule ceased to have any legal force or effect. As such, public notice and comment is unnecessary and would serve no useful purpose.

For these reasons, the EPA finds good cause to issue a final rulemaking without undergoing public notice and comment, in conformance with 5 U.S.C. 553(b)(B).