Protect Domestic Oil and Gas Small Business Act of 2026
- Sponsor
- Sen. Lummis, Cynthia M. [R-WY]
- Committees
- Environment and Public Works Committee (primary)
- Last action
- May 21, 2026
Bottom line
This bill seeks to reduce regulatory burdens on small-scale oil and gas producers by exempting marginal wells from certain Clean Air Act emissions requirements.
What it actually does
This bill amends the Clean Air Act to exempt marginal oil and natural gas wells, defined by specific low daily production thresholds, and their associated equipment from federal performance standards, guidelines, and all related monitoring, reporting, and leak detection requirements. It also mandates the Environmental Protection Agency (EPA) to revise its regulations and terminate any pending enforcement actions against such wells within 180 days of enactment.
Proponents argue
Proponents argue the bill protects small, independent oil and gas producers from burdensome and disproportionately costly environmental regulations, which they contend threaten the economic viability of these wells and domestic energy production. They assert that marginal wells contribute minimally to overall emissions and that compliance costs could lead to premature well closures, job losses, and increased reliance on foreign energy sources.
Opponents contend
Opponents would likely argue that exempting any source from Clean Air Act requirements undermines efforts to combat air pollution and climate change, regardless of individual well output. They might contend that cumulative emissions from numerous marginal wells could be significant and that such exemptions create loopholes, potentially encouraging less environmentally sound practices and setting a dangerous precedent for other industries.
The bill text is very short and straightforward, allowing for quick comprehension by any informed reader.
Section 1
Short Title
This section establishes the official short title of the Act as the "Protect Domestic Oil and Gas Small Business Act of 2026," providing a concise name for legislative reference and public discourse.
Supporters argue
Supporters would argue that a clear and descriptive short title helps communicate the bill's purpose and intended beneficiaries, framing it as a measure to support domestic energy businesses.
Critics contend
Opponents might argue that the title is misleading or overly favorable, suggesting it prioritizes business interests over environmental protection.
Tradeoffs
The tension between framing the bill as pro-business versus potentially anti-environment.
Section 2(a), amending Section 111 of the Clean Air Act
Exemption for Marginal Wells from Clean Air Act Standards
This provision adds a new subsection (k) to Section 111 of the Clean Air Act, creating a blanket exemption for "marginal wells" and their associated equipment from federal performance standards, guidelines, and all related monitoring, reporting, and leak detection requirements. It also prohibits the EPA Administrator from requiring states to include such standards for marginal wells in their state plans.
Section 2(a), new Section 111(k)(1)(B) of the Clean Air Act
Definition of "Marginal Well"
This section precisely defines a "marginal well" based on its average daily production over the preceding calendar year. For oil wells, it's 15 barrels of oil per day per well or less (or 15 barrels of oil equivalent using a 6,000 cubic feet per barrel conversion). For natural gas wells, it's 90,000 cubic feet of natural gas per day per well or less. This definition is critical for determining which wells qualify for the exemption.
Section 2(a), new Section 111(k)(4) of the Clean Air Act
Expedited Approval for State Plan Revisions
This provision requires the EPA Administrator to approve, disapprove, or partially act on any state plan revision that makes performance standards inapplicable to marginal wells within 180 days. If the Administrator fails to act within this period, the revision is automatically deemed approved. This streamlines the process for states to align their plans with the federal exemption.
Section 2(b)
Regulatory Revisions and Termination of Pending Enforcement Actions
This section mandates the EPA Administrator to revise all necessary regulations and guidance within 180 days of the Act's enactment to implement the new marginal well exemption. Crucially, it also requires the immediate termination of any pending enforcement actions against marginal wells related to the standards and requirements from which they are now exempted.