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U.S. EPA Greenhouse Gas Reporting Program (GHGRP) Reconsideration Proposal: Impact of the Loper Bright Ruling's Abolition of Chevron Deference

Enforcement: In transition / Under Review

Overview

In April 2024, EPA under the Biden administration published an amended final rule for the GHGRP (Greenhouse Gas Reporting Program; 40 CFR Part 98), expanding reporting coverage for the oil and gas sector (Subpart W) and other industrial processes and tightening calculation methodologies (including introducing direct methane measurement requirements). However, in June 2024, the U.S. Supreme Court's decision in Loper Bright Enterprises v. Raimondo abolished the nearly 40-year-old "Chevron deference" doctrine—under which courts deferred to agencies' interpretations of their statutory authority—resulting in significantly heightened judicial scrutiny of EPA's interpretation of its own legal authority. In response, EPA under the Trump administration is preparing, in 2026, a revised proposed rule aimed at reconsidering the strengthened calculation requirements, including Subpart W, and reducing reporting burden, in a move to scale back its authority in order to avoid legal challenges in court.

Enforcement Timeline

April 2024: EPA under the Biden administration publishes an amended final GHGRP rule (strengthening reporting requirements including Subpart W)

June 28, 2024: The U.S. Supreme Court issues the Loper Bright ruling, abolishing Chevron deference

2025–2026: Industry groups file multiple lawsuits challenging EPA's greenhouse gas reporting authority based on the Supreme Court ruling

As of 2026: EPA continues compiling a revised proposal to reduce GHGRP reporting requirements consistent with the intent of the Loper Bright ruling

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Business Impact

Companies operating energy, petrochemical, and large manufacturing facilities in the United States may see partial relief or delay in the previously anticipated expansion of detailed emissions data reporting requirements under the GHGRP—particularly regarding methane and stringent measurement requirements. However, because the Loper Bright ruling has created an environment in which agency rulemaking is more easily invalidated by courts, the risk of frequent regulatory changes and direct litigation from plaintiff groups has increased, and companies are required to closely monitor changes to federal reporting requirements while maintaining stable emissions calculation data management.