Waste Emissions Charge for Petroleum and Natural Gas Systems (Final Rule)

Forms and Documents

Document Name	Status
WEC_Final_Burden_Calculations.xlsx Supplementary Document	2024-11-18
2782ss02.docx Supporting Statement A	2024-11-18

IC Document Collections

IC ID	Document Title	Status
265444	Private Sector Annual Reporting	Modified

ICR Details

OMB Control No: 2060-0752	ICR Reference No: 202411-2060-004
Status: Received in OIRA	Previous ICR Reference No: 202402-2060-001
Agency/Subagency: EPA/OAR	Agency Tracking No: 2787.02
Title: Waste Emissions Charge for Petroleum and Natural Gas Systems (Final Rule)
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 11/18/2024

	Requested	Previously Approved
Expiration Date	36 Months From Approved
Responses	3,640	0
Time Burden (Hours)	12,737	0
Cost Burden (Dollars)	1,709,365	0

---

Abstract: In August 2022, Congress passed, and President Biden signed, the Inflation Reduction Act of 2022 (IRA) into law. Section 60113 of the IRA amended the Clean Air Act (CAA) by adding section 136, Methane Emissions and Waste Reduction Incentive Program for Petroleum and Natural Gas Systems. CAA section 136(c) directs the Administrator of the EPA to impose and collect a Waste Emissions Charge (hereafter referred to as WEC or charge) on methane emissions that exceed statutorily specified waste emissions thresholds from an owner or operator of an applicable facility. CAA section 136(g) directs the EPA to begin imposition and collection of charge with respect to emissions reported for calendar year 2024 and for each year thereafter. The waste emissions threshold is a methane intensity metric, therefore facilities that have methane emissions per unit of throughput below the threshold would not be required to pay the charge. The Waste Emissions Charge applies to facilities that report more than 25,000 metric tons (mt) carbon dioxide equivalent (CO2e) of greenhouse gases (GHG) emitted per year pursuant to the Greenhouse Gas Reporting Rules (GHGRP) requirements for the petroleum and natural gas systems source category (codified as 40 CFR part 98, subpart W). An applicable facility, as defined in CAA section 136(d), is a facility within the following segments (as the following industry segments are defined in part 98, subpart W): onshore petroleum and natural gas production, offshore petroleum and natural gas production, onshore natural gas processing, onshore petroleum and natural gas gathering and boosting, onshore gas transmission compression, onshore natural gas transmission pipeline, underground natural gas storage, liquefied natural gas import and export equipment, and liquefied natural gas storage. Congress structured the charge so that it focuses on large oil and gas facilities (i.e., those with emissions greater than 25,000 mt CO2e of GHG emitted per year). CAA section 136(f)(4) allows for the netting of charge obligation for applicable facilities under common ownership or control. CAA section 136(f)(5), (f)(6), and (f)(7) provide for certain exemptions from charge for applicable facilities, or portions of methane emissions from applicable facilities, that meet specified requirements. The Waste Emissions Charge applies to facilities that report more than 25,000 metric tons (mt) carbon dioxide equivalent (CO2e) of greenhouse gases (GHG) emitted per year pursuant to the Greenhouse Gas Reporting Rules (GHGRP) requirements for the petroleum and natural gas systems source category (codified as 40 CFR part 98, subpart W). An applicable facility, as defined in CAA section 136(d), is a facility within the following segments (as the following industry segments are defined in part 98, subpart W): onshore petroleum and natural gas production, offshore petroleum and natural gas production, onshore natural gas processing, onshore petroleum and natural gas gathering and boosting, onshore gas transmission compression, onshore natural gas transmission pipeline, underground natural gas storage, liquefied natural gas import and export equipment, and liquefied natural gas storage. Congress structured the charge so that it focuses on large oil and gas facilities (i.e., those with emissions greater than 25,000 mt CO2e of GHG emitted per year). CAA section 136(f)(4) allows for the netting of charge obligation for applicable facilities under common ownership or control. CAA section 136(f)(5), (f)(6), and (f)(7) provide for certain exemptions from charge for applicable facilities, or portions of methane emissions from applicable facilities, that meet specified requirements.

---

Authorizing Statute(s): US Code: 42 USC 85 Name of Law: Clean Air Act (CAA)
   PL: Pub.L. 117 - 169 136 Name of Law: Inflation Reduction Act of 2022
  

Citations for New Statutory Requirements: PL: Pub.L. 117 - 169 136 Name of Law: Inflation Reduction Act of 2022

---

Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
2060-AW02	Final or interim final rulemaking	89 FR 91094	11/18/2024

---

Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? Yes

---

Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Private Sector Annual Reporting

---

ICR Summary of Burden

	Total Request	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	3,640	0	3,640	0	0	0
Annual Time Burden (Hours)	12,737	0	12,737	0	0	0
Annual Cost Burden (Dollars)	1,709,365	0	1,709,365	0	0	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: New collection covering the reporting and recordkeeping requirements for the Waste Emissions Charge for Petroleum and Natural Gas Systems final rule.

---

Annual Cost to Federal Government: $5,783,774

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? No

---

Common Form ICR:  No

---

On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 11/18/2024

---