WASHINGTON — The Republican-controlled Congress has voted to repeal a federal fee on oil and gas producers who release high levels of methane, undoing a major piece of former President Joe Biden’s climate policy aimed at controlling the planet-warming “super pollutant.” The fee, which had not gone into effect, was expected to bring in billions of dollars.
The Senate on Thursday voted along party lines 52-47 to repeal the fee, following a similar House vote on Wednesday. The measure now goes to President Donald Trump, who is expected to sign it.
Methane is a much stronger global warming gas than carbon dioxide, especially in the short term, and is to blame for about one-third of the world’s warming so far. Oil and gas producers are among the biggest U.S. methane emitters and controlling it is critical to address climate change.
Most major oil and gas companies do not release enough methane to trigger the fee, which is $900 per ton, an amount that would increase to $1,500 by 2026. The measure was part of the 2022 Inflation Reduction Act, but the Environmental Protection Agency didn’t formally set rules until late last year.
That timing made it vulnerable to the Congressional Review Act, which allows Congress to pass a resolution to undo rules that are finalized towards the end of a president’s term. If those resolutions pass and the president signs them, the rule is terminated and agencies can’t issue a similar one again.
“It’s a sorry testament to the influence of Big Oil on Capitol Hill that one of the top priorities of Congress is a blatant handout to the worst actors in the fossil fuel industry,” said Tyson Slocum, director of Public Citizen’s energy program.
The American Petroleum Institute, the largest lobbying group for the oil and gas industry, applauded the move, calling the fee a “duplicative, punitive tax on American energy production that stifles innovation.”
“Thanks to industry action, methane emissions continue to decline as production increases, and we support building on this progress through smart and effective regulation,” said Amanda Eversole, the executive vice president and chief advocacy officer at API.
Globally, methane concentrations in the atmosphere have been steadily climbing.
Republican Sen. Shelley Moore Capito of West Virginia, who chairs the Senate’s Environment and Public Works committee, spoke in favor of repeal on the Senate floor.
“We should be expanding natural gas production, not restricting it. Instead, the natural gas tax will constrain American natural gas production, leading to increased energy prices and providing a boost to the production of natural gas in Russia,” she said.
When gas leaks, the producer is wasting gas it could keep and sell.
Repeal of the methane fee is the latest of several pro-oil and gas moves Republicans have taken since the start of Trump’s term. On his first day, he declared a national energy emergency, calling for more oil and gas production, and fewer environmental reviews. Democrats failed to overturn that declaration yesterday. Trump has also lifted a pause on new applications for liquified natural gas export terminals, removed the U.S. from the Paris climate agreement and moved to open up more areas of public lands and waters for oil and gas drilling.
The fee on methane releases was aimed at pushing companies to adopt better practices to curb emissions and make their operations more efficient. The EPA had said the fee was expected to reduce 1.2 million metric tons of methane emissions by 2035 — that’s about the same as removing 8 million cars from the road for a year.
The Biden administration had also implemented methane regulations on existing oil and gas wells, after addressing methane escaping from new wells. The EPA at the time meant for the fee to complement that rule and focus on the worst polluters.
About half of all methane emissions from wells are from just 6% that are smaller producers, according to a recent study.
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Phillis reported from St. Louis.
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