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Repeals the Clean Air Act provision that created a methane emissions and waste reduction incentive program for petroleum and natural gas systems and rescinds any unobligated funds that had been made available under that provision. The repeal removes the statutory authority for that incentive program and the rescission takes back any previously allocated but unused money tied to it, while leaving obligated/committed funds intact.
Repeals Section 136 of the Clean Air Act, which related to a methane emissions and waste reduction incentive program for petroleum and natural gas systems; this removes 42 U.S.C. 7436 from the law.
Rescind the unobligated balance of any amounts that were made available under section 136 of the Clean Air Act (as that section existed on the day before this Act was enacted). Source:
Who is affected and how:
Petroleum and natural gas industry (producers and operators): Loses the statutory federal incentive program that could have provided grants, rebates, or other financial incentives to reduce methane emissions and waste; this may reduce federal financial support for voluntary methane-reduction projects.
Potential grant recipients, contractors, and vendors: Organizations or companies that planned to apply for or receive funds under that program will no longer have access to those opportunities; any planned projects that relied on expected unobligated funds may need other financing.
Federal agencies (e.g., EPA): Administrative responsibility for this specific statutory program is eliminated; agencies will not be able to obligate previously available unobligated monies for new awards under that authority.
Budget and Treasury/federal finances: The rescission reduces the amount of federal unobligated balances available, which can modestly affect deficit/outlay profiles depending on the size of the rescinded amounts.
Environmental groups, state regulators, and affected communities (including communities near oil and gas operations): May see reduced federally supported methane mitigation activities; this could slow or reduce planned emission reductions that would have benefited air quality and climate outcomes.
Scope and limits:
The repeal is narrow: it removes one statutory incentive program and rescinds only unobligated balances tied to that provision. It does not alter other Clean Air Act authorities, existing regulations that require emissions controls, or funds already obligated or spent under the program prior to repeal.
The practical impact depends on how much unobligated funding exists and whether agencies or states had planned projects dependent on those funds. If unobligated balances are small or already reallocated, practical effects may be limited; if larger, the rescission could cancel planned but not-yet-funded initiatives.
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Read twice and referred to the Committee on Environment and Public Works.
Introduced January 16, 2025 by Rafael Edward Cruz · Last progress January 16, 2025
Read twice and referred to the Committee on Environment and Public Works.
Introduced in Senate