EPA Finalizes Methane Emissions Fee for Industry

The Biden administration has finalized a new federal fee targeting methane emissions from oil and gas companies, as mandated by the 2022 Inflation Reduction Act. This Waste Emissions Charge will impose fees starting at $900 per ton in 2024, increasing to $1,500 per ton by 2026 for companies exceeding specified emission levels. The Environmental Protection Agency (EPA) anticipates that this regulation could result in a reduction of 1.2 million metric tons of methane emissions by 2035, likening it to removing nearly 8 million gas-powered cars from the roads for a year. The rule is part of broader efforts to combat climate change, particularly as methane is a powerful greenhouse gas. However, the incoming Trump administration is expected to challenge and potentially repeal this regulation, with industry groups already signaling plans to contest the fee. This announcement coincides with the COP29 climate conference in Azerbaijan, underscoring the U.S.'s commitment to addressing global methane emissions.