Trump Administration May Repeal Methane Fee

The Biden administration's Environmental Protection Agency (EPA) announced a new fee targeting methane emissions from oil and gas companies, set to take effect next year unless repealed by the incoming Trump administration. The fee, part of the Inflation Reduction Act, imposes a charge of $900 per metric ton for excess methane emissions, increasing to $1,500 by 2026, with the aim to reduce emissions by 1.2 million metric tons by 2035. EPA Administrator Michael Regan emphasized that the rule is part of a broader strategy to enhance efficiency in the oil and gas sector and assert U.S. leadership on climate issues. However, Trump's administration is expected to challenge this regulation, which could jeopardize efforts to curb methane, a greenhouse gas significantly more potent than carbon dioxide. Industry groups have criticized the fee, arguing it complicates energy production while failing to effectively address emissions. The rule's implementation is also contingent on its publication in the Federal Register, a process that could delay its enforcement.