Senate Kills Methane Fee
Congress voted late last week to repeal a rule that implemented a requirement for traditional energy producers to pay a fine for methane emitted during operations, as required by the Inflation Reduction Act (Reuters, subscription).
The details: The rule was enacted by the previous administration but had not yet gone into effect.
- “Most major oil and gas companies do not release enough methane to trigger the fee, which is $900 per ton, an amount that would increase to $1,500 by 2026. The measure was part of the 2022 Inflation Reduction Act, but the Environmental Protection Agency didn’t formally set rules until late last year.”
Why it’s important: “We should be expanding natural gas production, not restricting it,” Rep. Shelley Moore Capito (R-WV) said. A “natural gas tax [would] constrain American natural gas production, leading to increased energy prices and providing a boost to the production of natural gas in Russia.”
Part of a broader plan: The move is the latest by the Trump administration to “unleash” American energy dominance.
- On his first day in office, the president declared a national energy emergency, calling for more domestic exploration and production.
- And last month, the Army Corps of Engineers identified 600 energy projects for fast-tracking.
What’s next: The methane fee legislation now goes to President Trump for his signature.
Our take: The Senate’s vote last week “is a key step to eliminating the EPA’s burdensome methane emissions fee,” the NAM said. “This unnecessary and counterproductive policy penalizes manufacturers critical to an all-of-the-above energy approach and finding innovative ways to control methane emissions.”