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The Environmental Protection Agency has finalized a rule to charge the oil-and-gas sector fees for methane emissions above a certain level (Reuters).

What’s going on: “The fee will start at $900 per metric ton of methane emitted in 2024, and increases to $1,200 in 2025, and $1,500 for 2026 and beyond. Under the rules, it would only apply to facilities that release more than 25,000 tons per year of carbon dioxide equivalent, according to the Environmental Protection Agency’s announcement.”

• The fee, known as the Waste Emissions Charge, was mandated by the 2022 Inflation Reduction Act. It was announced as President Biden is in Baku, Azerbaijan, for the United Nations COP29 climate conference.
• The news follows the EPA’s December 2023 finalization of methane emissions standards for the oil-and-gas sector and the May publication of a final rule on emissions-reporting requirements.

However … “After the November elections, in which Republicans are poised to hold control of the Senate, House and presidency, the prospect of a repeal has become more likely.” 

The NAM says: “Manufacturers have been at the forefront of efforts to develop innovative ways to control methane emissions,” said NAM Vice President of Domestic Policy Chris Phalen. “Natural gas is a critical part of the all-of-the-above energy strategy the U.S. needs, so it is vital that we have the right regulations in place for the industry to thrive. Manufacturers look forward to working with the next administration to ensure this is the case.”