theguardian.com
Methane Fee for Oil and Gas Industry
The Biden administration's new rule will charge oil and gas companies a federal fee for excessive methane emissions, aiming to curb climate change. Industry groups are planning legal challenges.
English
United Kingdom
Us PoliticsClimate ChangeEnergy SecurityEnvironmentRegulationClimateEmissionsMethane
Environmental Protection Agency (Epa)American Petroleum InstituteCongress
Michael ReganLee ZeldinDonald TrumpJoe Biden
- What is the main purpose of the new EPA rule regarding methane emissions?
- The Biden administration is finalizing a rule that will impose a federal fee on oil and natural gas companies emitting dangerous levels of methane, exceeding certain thresholds. This fee aims to incentivize the adoption of best practices for reducing methane emissions, a potent greenhouse gas.
- What is the proposed fee structure for exceeding methane emission limits?
- The new fee, starting at \$900 per ton in 2024 and rising to \$1,500 by 2026, is intended to encourage the oil and gas industry to invest in technologies that curb methane emissions. This will reduce their financial burden from this "waste emissions charge."
- What are the EPA's projected environmental and economic benefits from this rule?
- The EPA estimates this rule will decrease methane emissions by 1.2 million metric tons by 2035, equivalent to removing 8 million gas-powered vehicles from the road annually. This will yield cumulative climate benefits estimated at \$2 billion.
- How have industry groups and environmental groups responded to the proposed rule?
- Industry groups, including the American Petroleum Institute, strongly oppose the new fee, calling it a "punitive tax increase" that hurts American energy. They plan to challenge the rule legally, while environmental groups support it, arguing oil and gas companies should be held accountable for their pollution.
- What is the timeline for the implementation of the new rule and what is expected regarding legal challenges?
- While many large companies already meet or exceed methane emission standards, the EPA expects fewer companies will incur the fee over time as they adopt emission reduction practices in compliance with the new rule. The rule will not become fully effective until early next year after its publication in the Federal Register.