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Methane Fee on Oil and Gas Companies
The Biden administration's new rule imposes a federal fee on oil and gas companies exceeding methane emission limits to incentivize emission reduction, aiming to combat climate change.
English
United States
Us PoliticsEnergy SecurityEnergyRegulationPollutionEnvironmental PolicyClimate Action
Environmental Protection Agency (Epa)American Petroleum Institute (Api)Congress
Michael ReganDonald TrumpLee ZeldinJoe Biden
- What are the estimated environmental and economic benefits of the rule?
- While many large oil and gas companies already meet or exceed methane-performance levels, the EPA estimates the rule will result in significant cumulative emission reductions, equivalent to removing millions of gas-powered cars from the road. Cumulative climate benefits could reach \$2 billion.
- What is the main purpose of the new federal rule regarding methane emissions?
- The Biden administration is finalizing a rule that will impose a federal fee on oil and natural gas companies for emitting dangerous methane above certain levels. This fee, starting at \$900 per ton in 2024, aims to incentivize the industry to adopt emission-reducing practices.
- Why is reducing methane emissions considered crucial for addressing climate change?
- Methane, a potent greenhouse gas, is the primary component of natural gas, and the oil and gas sector is the largest industrial source of methane emissions in the US. Reducing these emissions is crucial for slowing climate change, as methane is significantly more potent than carbon dioxide in the short term.
- What are the expected reactions to the new rule from industry groups and the incoming Trump administration?
- The rule, announced at an international climate conference, is expected to face legal challenges from industry groups who argue the EPA overstepped its authority and set unattainable standards. The EPA maintains the rules are within its legal responsibilities and protect public health.
- What is the formal name for the fee being implemented and what will happen after the rule is published in the Federal Register?
- President-elect Donald Trump, if confirmed, is expected to reverse or loosen the environmental regulations introduced by President Biden in line with his pro-energy-dominance stance, which could jeopardize the new methane fee.