Repeal of EPA’s Endangerment Finding – Implications for Oil & Gas

EPA finalized its repeal of the 2009 Endangerment Finding on February 18, 2026. There is no doubt that the repeal signals a foundational shift in the Agency’s approach to greenhouse gas regulation. As our July alert discussed, EPA has leaned on the 2009 Endangerment Finding in subsequent greenhouse gas regulations for industry sectors other than motor vehicles and engines. But whether and how the repeal will impact those sectors, including the oil and gas industry, is far from clear. Here’s what we’re watching for the oil and gas industry:

• Impacts on methane standards and greenhouse gas reporting: It remains to be seen whether the Endangerment Finding repeal will impact methane standards in New Source Performance Standards at Subpart OOOOb, emissions guidelines for existing sources at Subpart OOOOc, and greenhouse gas reporting under Subpart W. All are undergoing changes in processes separate from the Endangerment Finding repeal. Oil and gas standards may differ from standards for motor vehicles and the power sector for various reasons, including Congress’ recognition of Section 111 methane standards in the Inflation Reduction Act’s Waste Emission Charge.
• Suncor Energy v. County Commissioners of Boulder County: The Supreme Court granted certiorari on February 23 in a case involving state law claims seeking relief for injuries allegedly caused by the effects of interstate and international greenhouse gas emissions. One of the issues will be whether state-law claims are precluded by federal law. Merits briefing on the case begins in May 2026. If the Court reaches the merits, this case will have significant bearing on the kinds of state law claims the oil and gas industry could see in coming years.

What is EPA’s 2009 Endangerment Finding?

The 2009 Endangerment Finding is an EPA finding that six well-mixed greenhouse gases in the atmosphere threaten the public health and welfare—carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF₆). The origin story of the finding began with a rulemaking petition in 1999 filed by a group of private organizations asking EPA to regulate greenhouse gases from motor vehicles under Section 202 of the Clean Air Act. EPA denied the petition in 2003, in part because the Agency thought it lacked statutory authority to regulate greenhouse gases under the Clean Air Act. 

That denial ultimately ended up in the Supreme Court in Massachusetts v. EPA. In that case, a plurality of the Court concluded that Section 202(a)(1) grants EPA the authority to regulate substances that contribute to climate change because greenhouse gases are air pollutants under the Act’s broad definition of that term. The Court did not reach the question of whether EPA must make an endangerment finding. EPA ultimately issued the finding under Section 202 and then embarked on regulatory overhauls to address greenhouse gas emissions from various industry sectors.

What was EPA’s basis for repealing the Endangerment Finding?

EPA’s February 18 final rule provides a comprehensive roadmap of EPA’s legal positions for repealing the Endangerment Finding. EPA has three main arguments, all of which the Agency says can stand alone:

1. The best reading of Section 202 does not include the authority to regulate greenhouse gases. Instead, the ordinary meaning, structure, and history of Section 202(a)(1) demonstrate that language targets air pollution that directly threatens public health or welfare through local or regional exposure.
2. EPA lacks the clear congressional authorization required under the major question doctrine to “decide the Nation’s response to global climate change concerns.”

3. “Eliminating GHG emissions from motor vehicles and engines would be futile.” Greenhouse gas standards for new vehicles and engines are not material to global climate change and certainly not material enough to justify their burden and cost.

While EPA says its repeal is limited to its findings under Section 202, some of its rationale could translate to further action on methane standards for the oil and gas industry, particularly the Agency’s approach to materiality of regulations to global climate change. But oil and gas standards like Subpart OOOOb are based on statutory authority at Clean Air Act Section 111, not Section 202, and Congress at least recognized those standards when it added Section 136 to the Clean Air Act in 2022 as part of the Inflation Reduction Act. These distinctions may make a difference in the impact of the repeal on greenhouse gas standards for the oil and gas industry. 

What’s next for the Endangerment Finding?

EPA’s repeal is headed to the D.C. Circuit in American Health Association v. EPA. A petition for review was filed on February 18 by environmental and public health organizations. There is little question that EPA’s repeal will ultimately end up in the Supreme Court. 

Womble Bond Dickinson’s environmental team is watching these developments closely and can help you navigate the impacts of regulatory changes on your business.