On November 12, 2024, the Biden administration announced a final rule to reduce methane emissions from high-emitting oil and gas producers. Enabled by the Inflation Reduction Act (the “Act”), EPA will now collect Waste Emission Charges from entities “wasting” methane by flaring or venting it into the atmosphere rather than capturing it. Congress included this requirement in the Act to prevent waste and encourage the oil and gas industry to conserve valuable energy resources.
EPA claims that these emission charges will prevent 1.2 million metric tons of methane from entering the atmosphere by the year 2035. The rule applies to oil and gas facilities emitting more than 25,000 metric tons of carbon dioxide per year, as self-reported to the Greenhouse Gas Reporting Program.
The Waste Emission Charges rule follows EPA’s March 2024 final methane standards applicable to new and existing oil and gas operations under the Clean Air Act. As Adams and Reese previously reported, the Supreme Court recently declined to stay the implementation of those standards pending judicial challenges.
Click here to read the EPA press release for more information
Stay tuned to see how President-elect Trump’s pick for EPA Administrator, Lee Zeldin, will address both rules upon confirmation. Because the Waste Emission Charges were mandated by Congress in the Act, it will be difficult to overturn the new rule. Zeldin will need the help of Congress.
While previously serving in Congress, Zeldin opposed the Act and EPA’s efforts to tighten methane standards. As Trump’s choice for EPA Administrator, Zeldin is expected to push hard for deregulation of the industry and promote Trump’s “drill, baby, drill” policies.
About Our Author
Rob Fowler serves as the Adams and Reese Environmental Team Leader, assisting clients throughout the firm’s regional and national footprint on environmental matters. Rob has over 28 years of experience in environmental and natural resource law. Rob helps clients navigate the complexities of the Clean Water Act, Clean Air Act, Surface Mining Control and Reclamation Act, Resource Conservation & Recovery Act, Comprehensive Environmental Response, Compensation, and Liability Act, Endangered Species Act, National Environmental Policy Act, and various historic preservation laws.