Environmental Protection Agency: Extension of Deadlines in Standards of Performance for New, Reconstructed, and Modified Sources and Emissions Guidelines for Existing Sources: Oil and Natural Gas Sector Climate Review Final Rule

B-337722

August 18, 2025

The Honorable Shelley Moore Capito
Chairman
The Honorable Sheldon Whitehouse
Ranking Member
Committee on Environment and Public Works
United States Senate

The Honorable Brett Guthrie
Chairman
The Honorable Frank Pallone, Jr.
Ranking Member
Committee on Energy and Commerce
House of Representatives

Subject: Environmental Protection Agency: Extension of Deadlines in Standards of Performance for New, Reconstructed, and Modified Sources and Emissions Guidelines for Existing Sources: Oil and Natural Gas Sector Climate Review Final Rule

Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a major rule promulgated by the Environmental Protection Agency (EPA) entitled “Extension of Deadlines in Standards of Performance for New, Reconstructed, and Modified Sources and Emissions Guidelines for Existing Sources: Oil and Natural Gas Sector Climate Review Final Rule” (RIN: 2060-AW61). We received the rule on July 30, 2025. It was published in the Federal Register on July 31, 2025. 90 Fed. Reg. 35966. The effective date of the rule is July 31, 2025.

This rule extends certain deadlines within the final rule titled “Standards of Performance for New, Reconstructed, and Modified Sources and Emissions Guidelines for Existing Sources: Oil and Natural Gas Sector Climate Review,” 89 Fed. Reg. 16820 (Mar. 8, 2024). 90 Fed. Reg. 35966. Specifically, EPA is extending deadlines for certain provisions related to control devices, equipment leaks, storage vessels, process controllers, and covers/closed vent systems. Id. EPA is also extending the date for future implementation of the SuperEmitter program and extending a state plan submittal deadline. Id. at 35967.

The Congressional Review Act (CRA) requires a 60-day delay in the effective date of a major rule from the date of publication in the Federal Register or receipt of the rule by Congress, whichever is later. 5 U.S.C. § 801(a)(3)(A). The 60-day delay in effective date does not apply, however, if the agency finds for good cause that notice and public procedure thereon are impracticable, unnecessarily, or contrary to the public interest, and the agency incorporates the finding and a brief statement of its reasons in the rule. 5 U.S.C. §§ 553(b)(B), 808(2). According to EPA, it did not go through notice and comment under the Administrative Procedure Act (APA) with respect to this rule because EPA found it unnecessary, as EPA is making only targeted changes to certain compliance or implementation dates in response to immediate concerns raised by stakeholders, including owners and operators subject to the rule’s requirements. 90 Fed Reg. 35979. Additionally, EPA stated that it found that notice and comment would be impracticable given compliance deadlines and the timeline involved in completing such procedures. Id. at 35980. Therefore, according to EPA, it was not required to delay the effective date for 60 days. Id.

Enclosed is our assessment of EPA’s compliance with the procedural steps required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule. If you have any questions about this report or wish to contact GAO officials responsible for the evaluation work relating to the subject matter of the rule, please contact Charlie McKiver, Assistant General Counsel, at (202) 512-5992.

Shirley A. Jones
Managing Associate General Counsel

Enclosure

ENCLOSURE

REPORT UNDER 5 U.S.C. § 801(a)(2)(A) ON A MAJOR RULE
ISSUED BY THE
ENVIRONMENTAL PROTECTION AGENCY
ENTITLED
“EXTENSION OF DEADLINES IN STANDARDS OF PERFORMANCE FOR NEW, RECONSTRUCTED, AND MODIFIED SOURCES AND EMISSIONS GUIDELINES FOR EXISTING SOURCES: OIL AND NATURAL GAS SECTOR CLIMATE REVIEW FINAL RULE”
(RIN: 2060-AW61)

(i) Cost-benefit analysis

The Environmental Protection Agency (EPA) prepared an analysis of the costs and benefits of this rule. See 90 Fed. Reg. 35966, 35980. EPA estimated that the present value of cost savings of the rule in 2024 dollars between 2028 and 2039, discounted to 2025, will be $750 million at a 3 percent discount rate, and $1.38 billion at a 7 percent discount rate. Id. EPA estimated that the equivalent annualized values of estimated cost savings will be $80 million at a 3 percent discount rate and $180 million at a 7 percent discount rate. Id. EPA also estimated the costs associated with the rule, including additional emissions resulting in climate damage and health costs, as well as the lost value of captured natural gas, totaling $170 million using a 3 percent discount rate and $290 million using a 7 percent discount rate. Id.

(ii) Agency actions relevant to the Regulatory Flexibility Act (RFA), 5 U.S.C. §§ 603–605, 607, and 609

According to EPA, this action is not subject to RFA. 90 Fed. Reg. 35980. EPA stated that RFA only applies to rules subject to notice and comment rulemaking requirements, which excludes the rule because the agency has invoked the “good cause” exemption under 5 U.S.C. § 553(b). Id. at 35981.

(iii) Agency actions relevant to sections 202–205 of the Unfunded Mandates Reform Act of 1995, 2 U.S.C. §§ 1532–1535

EPA determined that this rule will not have an effect on state, local, or tribal governments, in the aggregate, or on the private sector, of $100 million in 1995 dollars, updated annually for inflation, in any one year. See 90 Fed. Reg. 35981.

(iv) Other relevant information or requirements under acts and executive orders

Administrative Procedure Act, 5 U.S.C. §§ 551 et seq.

On November 15, 2021, EPA published a proposed rule. 86 Fed. Reg. 63110. On December 6, 2022, EPA published a supplemental proposed rule. 87 Fed. Reg. 74702. On March 8, 2024, EPA published a final rule. 89 Fed. Reg. 16820. According to EPA, it received multiple petitions for reconsideration on the 2024 final rule. 90 Fed. Reg. 35969. EPA responded to the issues raised in petitions for reconsideration in the rule. Id. Additionally, EPA stated that it finds that notice and comment is unnecessary for the rule because EPA is making only targeted changes to certain compliance or implementation dates in response to immediate concerns raised by stakeholders, including owners and operators subject to the rule’s requirements. Id. at 35979. EPA further stated that it finds that notice and comment would be impracticable given compliance deadlines and the timeline involved in completing such procedures. Id. at 35980.

Paperwork Reduction Act (PRA), 44 U.S.C. §§ 3501–3520

EPA determined that this rule contains no new information collection requirements under the Act. 90 Fed Reg. 35981.

Statutory authorization for the rule

EPA promulgated this rule pursuant to sections 111(b)(1)(B) and (d) of the Clean Air Act, codified at 42 U.S.C. §§ 7411(b)(1)(B), (d).

Executive Order No. 12866 (Regulatory Planning and Review)

EPA stated that this rule is significant under the Order. See 90 Fed. Reg. 35980. EPA stated that the rule was submitted to the Office of Management and Budget for review. Id.

Executive Order No. 13132 (Federalism)

EPA determined that this rule does not have federalism implications. See 90 Fed. Reg. 35981.