CLOSE Act

Bill Summary: H.R. 6081 – CLOSE Act

Full Title: Closing Loopholes for Oil and other Sources of Emissions Act

Session: 119th Congress

Jurisdiction: United States

Status: Referred to the House Committee on Energy and Commerce

Overview

The Closing Loopholes for Oil and other Sources of Emissions (CLOSE) Act is a targeted piece of environmental legislation designed to strengthen the regulation of air pollutants emitted by the oil and gas industry. The bill seeks to close a specific regulatory "loophole" regarding how emissions are calculated and to expand the list of federally recognized hazardous air pollutants.

Key Provisions

1. Elimination of the Aggregation Exemption

The bill amends Section 112(n) of the Clean Air Act by striking paragraph (4).

In practical terms, this removes the exemption that previously allowed certain oil and gas sources to avoid being classified as "major sources" of pollution by aggregating emissions across different sites or sources. By removing this exemption, more facilities within the oil and gas sector will likely trigger stricter regulatory requirements and oversight under the Clean Air Act.

2. Regulation of Hydrogen Sulfide ($\text{H}_2\text{S}$)

The Act mandates that the Environmental Protection Agency (EPA) take two specific steps to regulate hydrogen sulfide, a toxic and colorless gas often associated with oil and gas extraction:

• Classification: Within 180 days of the Act's enactment, the EPA must issue a final rule adding hydrogen sulfide to the official list of hazardous air pollutants.
• Source Identification: Within 365 days following that classification, the EPA must identify and list the specific categories and subcategories of "major sources" and "area sources" of hydrogen sulfide, explicitly including oil and gas wells.

Who is Affected?

• The Oil and Gas Industry: Operators of oil and gas wells and processing facilities will face increased scrutiny and more stringent emissions reporting and control requirements.
• The Environmental Protection Agency (EPA): The agency is granted new mandates to update its hazardous pollutant lists and define new source categories.
• Public Health: The bill intends to benefit communities located near oil and gas operations by reducing the legal loopholes that allow hazardous pollutants to go unregulated.

Timeline for Implementation

If passed into law, the bill establishes a strict regulatory clock:
* Day 180: Deadline for $\text{H}2\text{S}$ to be listed as a hazardous air pollutant.
* Day 545 (approx.): Deadline for the EPA to categorize the sources of $\text{H}2\text{S}$ emissions (365 days after the initial rule).

Summary Impact

The CLOSE Act represents a shift toward more aggressive federal oversight of the energy sector. By removing the aggregation exemption and targeting hydrogen sulfide, the bill aims to ensure that the "true" volume of emissions from oil and gas operations is captured and regulated, thereby reducing the overall atmospheric release of hazardous pollutants.