U.S. EPA Proposes Major Rollback of Federal Climate Disclosure Requirements
On September 16, 2025, the U.S. Environmental Protection Agency ("EPA") proposed a sweeping rollback of the Greenhouse Gas Reporting Program ("GHGRP") under 40 C.F.R. Part 98. Comments were due November 3, 2025. If finalized, reporting under the GHGRP for all non-subpart W sectors and the natural gas distribution industry will end. Reporting will be paused until 2034 for the other subpart W industries, which include offshore and onshore petroleum and natural gas production, onshore natural gas processing and transmission compression, underground natural gas storage, and liquefied natural gas storage, among others.
The GHGRP stems from the Fiscal Year (FY) 2008 Consolidated Appropriations Act, in which Congress provided $3,500,000 to develop and publish a rule "to require mandatory reporting of greenhouse gas emissions above appropriate thresholds in all sectors of the economy." In 2009, EPA issued the "Mandatory Reporting of Greenhouse Gas" rule to fulfill the mandate using Clean Air Act (CAA) § 114 as its authority to do so.
In 2022, Congress amended CAA § 136 to create the "Methane Emissions and Waste Reduction Incentive Program for Petroleum and Natural Gas Systems," which applied to subpart W industries other than the natural gas distribution industry. The amendment also required EPA to revise the GHGRP to ensure calculations are based on empirical data. In July 2025, Congress amended the section to have emissions data collection begin in 2034.
EPA's Rationale for the Proposed Withdrawal
EPA claims it does not have the authority to collect GHGRP data under CAA § 114. It argues that CAA § 114 allows EPA to collect data for enumerated purposes, but current reporting under the GHGRP serves no underlying statutory purpose. It states that the GHGRP requires the collection of data from many industries for "which the Agency has never clearly intended to develop regulations." EPA is not arguing it does not have authority under CAA § 136, so the emissions data collection starting in 2034 for subpart W industries, other than the natural gas distribution industry, would remain in force. In the alternative, EPA also argues that it has discretion to cease collecting the data, as CAA § 114 states that EPA "may" collect the data, rather than "must" or "shall."
If finalized, the rule could have far-reaching implications but will likely face challenges. Instead of revoking the GHGRP based on EPA discretionary power, EPA's interpretation would keep future administrations from reversing course by permanently stripping CAA § 114 of this power. EPA would, however, need to overcome the added scrutiny of its interpretation from the Supreme Court's decision in Loper Bright Enterprises v. Raimondo, 603 U.S. 369 (2024). It would also have to explain why Congress would specifically order and appropriate funds to EPA in 2008 if EPA does not have the power to regulate.
Indirect Implications
EPA is aware that state, tribal, and local programs potentially utilize the data for non-CAA statutory reasons. EPA is seeking comments on this point, but if the rule is finalized, these government entities may rely on other GHG reports or potentially create their own reporting requirements. This shift away from the GHGRP could create varied state and local requirements that increase emission reporting administrative costs.
Companies should follow the proceedings of the rule to determine how it might affect their industry, including at the state and local levels.
