The U.S. Environmental Protection Agency (EPA) has announced a new rule aimed at reducing methane emissions from the oil and gas sector. This move is part of President Biden's Methane Emissions Reduction Action Plan, which seeks to ensure that natural gas reaches consumers instead of polluting the air. The rule aligns with Congress's directive in the Inflation Reduction Act to impose a Waste Emissions Charge on large emitters exceeding specific performance levels.

EPA Administrator Michael S. Regan stated, "The final Waste Emissions Charge is the latest in a series of actions under President Biden’s methane strategy to improve efficiency in the oil and gas sector, support American jobs, protect clean air, and reinforce U.S. leadership on the global stage." Regan emphasized that the EPA has been working with industry stakeholders to reduce emissions and enhance fuel usability.

The EPA projects that this regulation will cut 1.2 million metric tons of methane emissions by 2035, equivalent to removing nearly 8 million gas-powered cars from roads for a year. This reduction could result in climate benefits worth up to $2 billion.

The Waste Emissions Charge targets high-emitting facilities reporting over 25,000 metric tons of carbon dioxide equivalent annually, starting with 2024 emissions data. Charges begin at $900 per metric ton in 2024 and rise to $1,500 by 2026 for emissions surpassing set thresholds.

Facilities adhering to Clean Air Act standards may be exempt from charges once certain criteria are met. The rule encourages states to propose plans for limiting methane emissions from existing operations promptly.

Methane is considered a significant climate pollutant due to its heat-trapping capability being much higher than carbon dioxide over a century. The oil and gas sector is noted as the largest industrial source of methane emissions in the U.S., making reductions critical for addressing global temperature increases.

The Waste Emissions Charge complements other measures under the Inflation Reduction Act designed to reduce domestic methane emissions, including funding for monitoring and mitigation technologies.

In addition to establishing this charge, more than $1 billion has been allocated under the Methane Emissions Reduction Program (MERP) for various initiatives supporting emission reductions across the oil and gas sector.

For further details on these initiatives, interested parties can visit the Methane Emissions Reduction Program website.