In a controversial move, the Republican-led Congress has voted to overturn a federal fee targeting oil and gas producers releasing high levels of methane. This decision overturns a key component of former President Joe Biden’s climate policy aimed at addressing the potent greenhouse gas. The fee, which had not yet been implemented, was projected to generate considerable revenue.
The Senate voted 52-47 along party lines to repeal the fee, following a similar vote in the House. The bill is now headed to President Donald Trump for his expected approval. Methane is a potent greenhouse gas, with a much stronger warming impact compared to carbon dioxide, particularly in the short term. It is responsible for about a third of global warming to date, with oil and gas producers being significant emitters of methane in the U.S.
Many major oil and gas companies do not release sufficient methane to trigger the fee, which was set at $900 per ton and scheduled to rise to $1,500 by 2026. The fee was part of the 2022 Inflation Reduction Act, but formal regulations by the Environmental Protection Agency were only established late last year, making it susceptible to repeal under the Congressional Review Act.
Critics argue that the repeal serves as a giveaway to the fossil fuel industry, with some calling it a move influenced by Big Oil. The American Petroleum Institute supported the repeal, labeling the fee as burdensome and counterproductive to energy innovation. Methane concentrations in the atmosphere have been on the rise globally, underscoring the urgency of addressing this potent greenhouse gas.
Republican Senator Shelley Moore Capito of West Virginia advocated for the repeal, emphasizing the importance of expanding natural gas production. The move to roll back the methane fee is the latest in a series of pro-oil and gas actions taken by Republicans during Trump’s tenure, including declarations of energy emergencies and lifting restrictions on oil and gas activities.
The methane fee was designed to incentivize companies to reduce emissions and improve operational efficiency. Its repeal signifies a shift towards less stringent regulations on the oil and gas industry, amidst ongoing concerns about climate change and environmental sustainability.
The advertisement stated that the fee was projected to result in a reduction of 1.2 million metric tons of methane emissions by 2035, which is equivalent to taking 8 million cars off the road for a year. In addition to this, the Biden administration had put in place methane regulations for existing oil and gas wells following measures to tackle methane emissions from new wells. The Environmental Protection Agency (EPA) intended for the fee to work in conjunction with this regulation and target the most significant polluters. A recent study revealed that approximately half of methane emissions from wells originate from only 6% of smaller producers. Reporting from St. Louis, this information was provided by Phillis. The Associated Press is supported by the Walton Family Foundation for its coverage of water and environmental policy. The AP bears full responsibility for all content published. To explore more of the AP’s environmental reporting, please visit https://apnews.com/hub/climate-and-environment.
