EPA proposes to remove GHG reporting requirements for most facilities
The Environmental Protection Agency (EPA) published a significant proposed rule on September 16, 2025. The agency proposes to eliminate the Greenhouse Gas Reporting Program (GHGRP) requirements for nearly all regulated entities except for petroleum and natural gas systems. EPA also plans to suspend compliance requirements for covered facilities until reporting year (RY) 2034.
Further, the proposed rule notes that Congress amended the Clean Air Act in July 2025 to start the Waste Emissions Charge (WEC) program in 2034. The changes essentially reinstate the WEC program that was previously disapproved.
The GHGRP requires covered entities to submit annual reports of GHG emissions. The regulation applies to 47 source categories, including:
- Large direct emitters of GHG emissions (25,000 or more metric tons of carbon dioxide equivalent per year),
- Fuel and industrial gas suppliers, and
- Carbon dioxide injection sites.
What are the possible changes?
EPA proposes to:
- Remove the requirements of 40 CFR Part 98 for all source categories under Part 98 except for the Petroleum and Natural Gas Systems source category (Part 98 Subpart W),
- Remove the Natural Gas Distribution industry segment (98.230) from the Petroleum and Natural Gas Systems source category, and
- Suspend the reporting requirements for the Petroleum and Natural Gas Systems source category until January 1, 2034.
How could this impact facilities?
If finalized, EPA’s proposed rule would have major effects:
- Nearly all of the covered source categories (apart from petroleum and natural gas systems) would no longer be subject to the GHGRP regulations after RY 2024.
- Natural gas distributors would be removed from Part 98 Subpart W and, therefore, no longer subject to the GHGRP regulations after RY 2024.
- Facilities in the Petroleum and Natural Gas Systems source category (except for natural gas distributors) would be subject to the GHGRP regulations. However, requirements wouldn’t apply until RY 2034. The next report would be due by March 31, 2035, and annually thereafter.
About the WEC program
Amendments to Section 136 of the Clean Air Act in 2022 required EPA to start collecting a WEC from facilities in the Petroleum and Natural Gas Systems source category (except those in the natural gas distribution industry segment) that exceed waste emissions thresholds.
In March 2025, a joint congressional resolution disapproved the regulation implementing the WEC program, making the rule ineffective. Further, EPA issued a final rule in May 2025 that removed the WEC regulations from the Code of Federal Regulations.
However, the One Big Beautiful Bill Act (signed into law in July 2025) amended Section 136(g) of the Clean Air Act to begin imposing and collecting a WEC from the Petroleum and Natural Gas Systems source category (except for natural gas distributors) for emissions reported for calendar year 2034 and later.
How can I participate in the rulemaking?
You can register for and attend EPA’s virtual public hearing for the proposed rule on October 1, 2025. Additionally, you may submit public comments on the proposed rule (Docket Id. No. EPA-HQ-OAR-2025-0186) through November 3, 2025.
Key to remember: EPA proposes to eliminate the Greenhouse Gas Reporting Program requirements for all source categories except the petroleum and natural gas systems category and to suspend compliance obligations until 2034.