The U.S. environmental review process returns to 'common sense'

As part of this reform, the U.S. Department of Energy recently announced it will revise its implementation procedures under the National Environmental Policy Act (NEPA) to unblock bottlenecks in the permitting process and fulfill Trump’s pledge to unlock America’s energy potential and accelerate construction of critical energy infrastructure. The U.S. NEPA implementation procedures are analogous to China’s Environmental Impact Assessment Law. Key elements of this reform include: ・ Abolishing outdated permitting procedures dating back to the 1980s; ・ Reducing the maximum statutory review period for environmental impact reports from three years to two years; ・ Clarifying lead-agency responsibilities by mandating designation of a single 'lead agency' to coordinate interdepartmental duties, promote cross-agency collaboration, and enable one-time preparation and multi-agency sharing of environmental impact reports; ・ Strictly limiting both the duration of reviews and the length of environmental impact reports—ending the乱象 of 'excessive justification and indefinite delays'; ・ Explicitly requiring reviewing agencies to base decisions on 'common sense' and rely solely on verified, existing scientific research—not to overstep their authority by evaluating extreme hypothetical scenarios lacking legal basis; ・ Enhancing transparency by involving project funders in the review process; ・ Requiring all departments to apply streamlined 'exemption lists' to routine activities demonstrably having no environmental impact, to the greatest extent possible; ・ The new rules also respond to the U.S. Supreme Court’s latest ruling in the 'Seven Counties Case', which explicitly restricts permitting agencies from considering upstream and downstream greenhouse gas emissions of projects—and prohibits overreaching climate-related analyses. The regulation clarifies the appropriate scope of greenhouse gas impact assessments, preventing unwarranted expansion of climate-related analysis. U.S. Energy Secretary Chris Wright stated: 'America can achieve greatness again—but only by cutting away the red tape that strangles energy innovation and ending bureaucratic stagnation in permitting.'

U.S.-EU 'energy carbon tariffs' are taking shape

The U.S. and EU have successively introduced methane emission control policies. Energy-sector companies now face methane emission fees and supply-chain disclosure requirements. Draft (Luo Yunfu, 1851141323@qq.com, July 2024) I. U.S. IRA-WEC Act On June 21, 2024, the U.S. Environmental Protection Agency (EPA) and Department of Energy (DOE) announced $850 million in funding to support methane emission reduction projects in the oil and natural gas sector under the Inflation Reduction Act (IRA). This funding aims to improve the accuracy of emissions reporting from oil and gas facilities, ensuring transparency and accountability in reported data. epa.gov/newsreleases/ep... The U.S. 'Methane Emissions Reduction Program' seeks to enhance reporting accuracy specifically to support its 'Waste Emissions Charge (WEC)' component. The legislative proposal to impose methane emission fees on the oil and gas industry was first introduced under the 2022 IRA framework; the final rule was issued on May 6, 2024, and the final revised version of the 'Methane Emissions Reduction Program' opened for public comment on July 2, 2024. Under the IRA-WEC Act, methane emissions exceeding prescribed thresholds will be charged at $900 per ton in 2024, rising to $1,200 per ton in 2025, and to $1,500 per ton from 2026 onward. Emission monitoring must rely on direct measurement—not estimation—and all data must undergo third-party verification. The final version of the WEC rule and its accompanying implementing regulations have now been finalized. Reference information: (1) IRA-WEC Act and supporting implementing regulations: epa.gov/inflation-reduc... (2) Final notice issued in May 2024: epa.gov/newsreleases/bi... II. EU Methane Reduction Regulation for the Energy Sector In October 2020, the EU released its Methane Strategy (COM(2020) 663). Under this strategy, on May 27, 2024, the EU adopted its first-ever legislative act targeting methane emissions in the energy sector (legislative proposal C/2023/1081), aiming to reduce methane emissions from energy activities both within the EU and across its global energy supply chains. Key to delivering the EU Methane Strategy, the first-ever EU Regulation on methane emissions reduction in the energy sector was adopted on 27 May 2024. It will reduce energy sector methane emissions in Europe and in our global supply chains.

EPA Continues Deregulatory Push with Oil and Gas Proposal

2 days ago

The US EPA proposed reversing Biden-era oil and gas regulations, estimating $45 billion in savings and increased market supply. This move aligns with the Trump administration's broader deregulatory efforts.

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