The Methane Emissions Reduction Program was established under the 2022 Inflation Reduction Act, mandating the Environmental Protection Agency (EPA) to set charges on methane emissions for facilities emitting more than 25,000 tons of carbon dioxide equivalent per year. Methane, a potent greenhouse gas, significantly contributes to climate change, with the oil and gas sector being the most significant industrial source of methane emissions in the United States.
Proponents of the methane fee argue that it is a practical, cost-effective solution to reduce wasted natural gas and mitigate environmental harm. In the U.S. alone, enough natural gas is wasted from leaks, venting, and flaring each year to meet the annual needs of 12 million households. The fee incentivizes companies to adopt best practices to reduce emissions, thereby conserving valuable energy resources and protecting public health.
Opponents, including Senators Hoeven and Kennedy, describe the fee as a tax that could increase energy costs and hinder energy production. They advocate for policies that promote increased energy production without additional fees, expressing concerns that the methane fee could hamper the industry’s growth and economic contributions.
Repealing the implementing rule could lead to chaos and uncertainty for operators, as the program is still required by law. The EPA estimates that the rule will result in cumulative emissions reductions of 1.2 million metric tons of methane through 2035, equivalent to taking nearly 8 million gasoline-powered cars off the road for a year. Cumulative climate benefits could total as much as $2 billion.
The debate over the methane polluter fee highlights the broader tension between environmental regulation and energy production. As policymakers consider the proposed resolutions, they must balance the need for environmental safeguards with the goal of maintaining energy independence and economic growth.
