,,ii #aagth ,,congress #ast ,session ,s4 #fde ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #i1 #bjba,mr4 ,whitehouse 7for himself1 ,mr4 ,booker1 and ,mr4 ,schatz7 introduced the following bill2 which was read twice and referred to the ,committee on ,environment and ,public ,works ,a ,,bill ,to require the ,secretary of the ,treasury to levy a fee on methane emissions from oil and natural gas facilities1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,methane ,emissions ,reduction ,act of #bjba4 #b4 ,findings ,congress finds that-- 7#a7 methane is a potent heat-trapping gas that absorbs #bh to #cf times the quantity of energy that carbon dioxide absorbs over a #ajj-year period2 7#b7 increased methane concentrations in the atmosphere are responsible for approximately #be percent of observed global warming2 7#c7 approximately #a_/c of global anthropogenic methane emissions are produced by the production and transmission of fossil fuels2 7#d7 recent estimates suggest that methane emissions from oil and natural gas operations in the ,united ,states are #fj percent higher than previously believed1 representing #b4c percent of natural gas production2 7#e7 methane emissions from oil and natural gas operations in the ,united ,states represent approximately #b1jjj1jjj1jjj in lost natural gas that could be used to fuel #aj1jjj1jjj homes2 7#f7 estimates from the ,international ,energy ,agency suggest that #a_/b of methane emissions from global oil and natural gas supply chains may be eliminated at zero net cost2 7#g7 some oil and natural gas companies have announced plans to reduce methane emissions from the operations of those companies to below #j4b percent of production1 demonstrating that significant reductions in methane emissions are technically and economically feasible2 and 7#h7 numerous companies in the ,united ,states are developing innovative technologies to allow oil and natural gas companies to more cost-effectively detect and reduce methane emissions4 #c4 ,definitions ,in this ,act3 7#a7 ,basin ,the term basin means a geologic province 7as defined by the ,american ,association of ,petroleum ,geologists74 7#b7 ,empirically determined ,the term empirically determined means determined through the collection of sufficient data in situ1 including measurement on the ground or by drone1 airplane1 or satellite1 for the purpose of accurately estimating the quantity of methane emissions from a basin4 7#c7 ,methane ,the term methane means a chemical compound with the chemical formula ,,ch#d4 7#d7 ,methane emission ,the term methane emission means the release of methane from the extraction1 production1 gathering1 processing1 compression1 transmission1 or storage of-- 7,a7 oil2 or 7,b7 natural gas4 7#e7 ,methane fee factor ,the term methane fee factor means the amount calculated under section #d7;b77#b77;,d7 for the applicable calendar year4 7#f7 ,natural gas ,the term natural gas has the meaning given the term in section #c of the ,deepwater ,port ,act of #aigd 7#cc ,u4,s4,c4 #aejb74 7#g7 ,oil ,the term oil has the meaning given the term in section #c of the ,deepwater ,port ,act of #aigd 7#cc ,u4,s4,c4 #aejb74 7#h7 ,percentage of volume lost to the atmosphere ,the term percentage of volume lost to the atmosphere means1 for any #a company with respect to any #a basin-- 7,a7 for companies that use the fee calculated under section #d7;b77#b77;,b77i71 the percentage determined for the basin under the program established under section #d7;a72 and 7,b7 for companies that use the fee calculated under clause 7iii7 of section #d7;b77#b77;,c71 the quotient obtained by dividing-- 7i7 the methane emissions in the basin during the applicable calendar year1 as determined by the company using a protocol validated by the ,secretary under clause 7ii7 of that section2 by 7ii7 the total quantity of natural gas produced1 gathered1 processed1 transmitted1 or released and lost to the atmosphere by the company in the basin during the applicable calendar year1 as determined by the company using a protocol validated by the ,secretary under clause 7ii7 of that section4 7#i7 ,secretary ,the term ,secretary means the ,secretary of the ,treasury4 #d4 ,fee on methane emissions 7a7 ,estimate of methane emissions ,not later than ,december #ca1 #bjbb1 the ,secretary1 in consultation with the ,administrator of the ,environmental ,protection ,agency and the ,administrator of the ,national ,oceanic and ,atmospheric ,administration1 shall establish and implement a program to estimate1 based on empirically determined1 peer-reviewed methane emission rates1 annual methane emissions1 and methane emission rates 7expressed in percentage of natural gas production71 from each oil and natural gas producing basin4 7b7 ,fee 7#a7 ,in general ,for calendar year #bjbc and each calendar year thereafter1 the ,secretary shall levy a fee on methane emissions on each company that produces1 gathers1 processes1 or transmits oil or natural gas4 7#b7 ,amount 7,a7 ,in general ,the fee under paragraph 7#a7 shall be calculated in accordance with subparagraph 7,b7 or 7,c71 as applicable4 7,b7 ,proportional fee calculation 7i7 ,in general ,subject to subparagraph 7,c71 the fee under paragraph 7#a7 for a basin in which a company produces1 gathers1 processes1 or transmits oil or natural gas for a calendar year shall be the sum obtained by adding-- 7,i7 the product obtained by multiplying-- 7aa7 the difference between-- 7,,aa7 the percentage of volume lost to the atmosphere in the basin during the calendar year2 and 7,,bb7 #j4b percent2 7bb7 the total quantity of natural gas produced or released and lost to the atmosphere during oil or natural gas production by the company in the basin during the calendar year2 and 7cc7 the methane fee factor for the applicable calendar year2 and 7,,ii7 the product obtained by multiplying-- 7aa7 the difference between-- 7,,aa7 the percentage of volume lost to the atmosphere in the basin during the calendar year2 and 7,,bb7 #j4a percent2 7bb7 the total quantity of natural gas gathered1 processed1 or transmitted by the company in the basin during the calendar year2 and 7cc7 the methane fee factor for the applicable calendar year4 7ii7 ,requirement ,the fee calculated under clause 7i7 for a company shall be determined on a basin-by-basin basis for each basin in which the company produces1 gathers1 processes1 or transmits oil or natural gas4 7,c7 ,alternative fee calculation 7i7 ,opt out ,a company may opt out of the fee calculated under subparagraph 7,b7 if-- 7,i7 the company submits to the ,secretary a peer-reviewed protocol for empirically determining1 on a basin-by-basin basis for all basins1 the total amount of methane emissions that result from oil and natural gas facilities-- 7aa7 that the company operates2 or 7bb7 in which the company has an ownership interest2 and 7,,ii7 the ,secretary validates the protocol in accordance with clause 7ii74 7ii7 ,validation 7,i7 ,in general ,the ,secretary may validate a protocol submitted under clause 7i77,i7 if-- 7aa7 the ,secretary determines that the protocol is an accurate and comprehensive empirical method for calculating the methane emissions of the company submitting the protocol2 7bb7 the protocol-- 7,,aa7 is peer-reviewed by independent scientists2 7,,bb7 is available to the public in its entirety2 and 7,,cc7 requires the regular collection of data2 7cc7 all underlying data collected under the protocol are available to the public2 and 7dd7 the ,secretary determines that-- 7,,aa7 to the maximum extent practicable1 the company has installed state-of-the-art technologies to detect and eliminate methane leaks from all oil and natural gas facilities the company owns or operates2 and 7,,bb7 subject to subclause 7,,iii71 the company has prohibited the venting and flaring of methane1 except in emergency circumstances4 7,,ii7 ,timeline ,a protocol described in clause 7i77,i7 shall be submitted to the ,secretary for validation under subclause 7,i7 not later than ,june #cj of the calendar year before the calendar year for which the company is seeking to opt out of the fee calculated under subparagraph 7,b74 7,,iii7 ,emergency circumstances ,an emergency circumstance for which the venting or flaring of methane is authorized under subclause 7,i77dd77,,bb7 does not include-- 7aa7 venting or flaring of methane from oil wells because the company has failed to develop the infrastructure necessary to capture1 process1 and transmit methane associated with oil production2 or 7bb7 any claim of economic necessity4 7iii7 ,calculation ,for a company that has opted out of the fee calculated under subparagraph 7,b7 in accordance with clause 7i71 the fee under paragraph 7#a7 for a basin in which the company produces1 gathers1 processes1 or transmits oil or natural gas for a calendar year shall be the sum obtained by adding-- 7,i7 the product obtained by multiplying-- 7aa7 the difference between-- 7,,aa7 the percentage of volume lost to the atmosphere in the basin during the calendar year2 and 7,,bb7 #j4b percent2 7bb7 the total quantity of natural gas produced or released and lost to the atmosphere during oil or natural gas production by the company in the basin during the calendar year2 and 7cc7 the methane fee factor for the applicable calendar year2 and 7,,ii7 the product obtained by multiplying-- 7aa7 the difference between-- 7,,aa7 the percentage of volume lost to the atmosphere in the basin during the calendar year2 and 7,,bb7 #j4a percent2 7bb7 the total quantity of natural gas gathered1 processed1 or transmitted by the company in the basin during the calendar year2 and 7cc7 the methane fee factor for the applicable calendar year4 7iv7 ,requirement ,the fee calculated under clause 7iii7 for a company that opted out of a fee calculated under subparagraph 7,b7 shall be determined on a basin-by-basin basis for each basin in which the company produces1 gathers1 processes1 or transmits oil or natural gas4 7,d7 ,methane fee factor 7i7 ,initial cost ,for calendar year #bjbc1 the methane fee factor shall be #a1hjj per ton4 7ii7 ,annual adjustment ,for each calendar year after #bjbc1 the methane fee factor shall be adjusted to an amount that is equal to the product obtained by multiplying-- 7,i7 the methane fee factor for the preceding calendar year2 and 7,,ii7 the percentage obtained by adding-- 7aa7 #ajb percent2 and 7bb7 the percentage by which the ,consumer ,price ,index for the calendar year exceeds the ,consumer ,price ,index for the preceding calendar year4 7#c7 ,timing ,not later than ,july #a of each year1 the ,secretary shall calculate and levy the fee under paragraph 7#a7 for the preceding calendar year4 7#d7 ,national ,coastal ,resilience ,fund ,notwithstanding section #aj7;b77#b7 of the ,national ,fish and ,wildlife ,foundation ,establishment ,act 7#af ,u4,s4,c4 #cgji7;b77#b771 the ,secretary shall1 on an annual basis1 transfer an amount equal to the amounts collected under the fee under paragraph 7#a7 to the ,national ,fish and ,wildlife ,foundation to provide grants through the ,national ,coastal ,resilience ,fund of the ,national ,fish and ,wildlife ,foundation 7or a successor program74 #e4 ,savings ,nothing in this ,act-- 7#a7 affects the ability to regulate methane emissions under any other provision of law2 or 7#b7 preempts a ,state from regulating or assessing a fee on methane emissions from oil and gas facilities4