In a controversial move, the Republican-led Congress has voted to eliminate 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, designed to address the potent greenhouse gas. The fee, set to bring in billions of dollars, never took effect.
The Senate voted 52-47 along party lines to repeal the fee, following a similar decision by the House. The measure now awaits President Donald Trump’s expected approval. Methane, a powerful contributor to global warming, is responsible for a significant share of the Earth’s temperature rise. Tackling methane emissions from oil and gas operations is crucial in the fight against climate change.
While most major industry players do not emit enough methane to trigger the fee—set at $900 per ton and slated to rise to $1,500 by 2026—the repeal has drawn criticism. Environmentalists and advocates have condemned the move as a boon to the fossil fuel industry, accusing Congress of prioritizing corporate interests over environmental protection.
The American Petroleum Institute, a leading industry lobby, supported the repeal, citing the fee as an unnecessary burden hindering energy production. However, critics argue that the fee was intended to incentivize emission reductions and promote cleaner practices in the sector.
The repeal of the methane fee is the latest in a series of oil and gas-friendly actions undertaken by Republicans during the Trump administration. These efforts include easing regulations, promoting domestic production, and prioritizing industry interests over environmental concerns.
The fee was projected to decrease 1.2 million metric tons of methane emissions by 2035, equivalent to removing 8 million cars from the road for a year. The Biden administration had also rolled out methane regulations for existing oil and gas wells, in addition to addressing methane leakage from new wells. At the time, the EPA intended for the fee to complement this regulation and target the most significant polluters. Research shows that approximately half of methane emissions from wells stem from just 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 is accountable for all content produced. For more of the AP’s environmental coverage, please visit https://apnews.com/hub/climate-and-environment.
