US Proposes Fee On Methane From Big Oil And Gas Producers. According to Reuters, “The U.S. on Friday proposed a fee on emissions of methane from big oil and gas producers as required under the 2022 climate law and as a backstop to wider regulations on the greenhouse gas from energy operations. The fee, proposed by the Environmental Protection Agency, applies to large oil and gas facilities that report methane emissions of more than 25,000 metric tons of carbon dioxide equivalent per year. As directed by the Inflation Reduction Act (IRA), the fee starts at $900 per ton in 2024, increases to $1,200 for 2025 and $1,500 for 2026 and beyond, the EPA said. It only applies to the emissions that exceed the specified levels.” [Reuters, 1/12/24 (=)]

EPA Floats Methane Fee Proposal, Including Key Exemption Parameters. According to Inside EPA, “EPA has released long-awaited proposed implementing rules for the Inflation Reduction Act’s (IRA) methane fee, outlining how to calculate payments by oil and gas facilities, when such payments must be made to the Treasury, and when and how officials would grant several exemptions to the fee required by Congress. Notably, the proposed rule signed Jan. 12 indicates that a crucial exemption would not take effect until EPA has approved all states’ compliance plans for the agency’s just-finalized existing source methane standards. However, once that exemption is triggered, the agency indicates that emissions covered by the fee would drop precipitously.” [Inside EPA, 1/12/24 (=)]

Federal Rule Forces Oil States To Cut Planet-Warming Methane Emissions. According to New Hampshire Bulletin, “Within two years, a new federal rule will force oil- and gas-producing states to crack down on methane gas emissions – a major driver of climate change. A handful of states already have rules that force drillers to increase monitoring and upgrade equipment, which advocates say provided an effective template for the federal action. But many other states will be starting from scratch. In those states, some officials and oil industry leaders say the burden on regulators and fossil fuel producers may outweigh the benefits of reduced emissions.” [ New Hampshire Bulletin, 1/16/24 (=)]