The Environmental Protection Agency (EPA) on Tuesday finalized new fees on oil and gas industry emissions of methane; however, this rule could be an early target for the Trump administration.
The EPA rule aims to reduce methane emissions from the oil and gas industry, which arose from a directive inside the Inflation Reduction Act to collect a “Waste Emissions Charge.”
The EPA said in a press release that its rule would reduce 1.2 million metric tons of methane through 2035, which is the equivalent of taking roughly 8 million gas-powered automobiles off the road per year.
EPA Administrator Michael Regan said in a written statement, “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.”
The American Exploration & Production Council (AXPC), an industry association for the oil and natural gas industry said that the EPA methane rule will lead to higher energy prices.
Anne Bradbury, the CEO of AXPC, said in a written statement:
American energy producers’ commitment to methane emissions reductions is unwavering, as upstream industry has cut its methane intensity by over half since 2015 while continuing to supply affordable and reliable energy to the world. The methane tax is not the right policy to incentivize continued progress on emission reduction, and when combined with other recent rulemakings at EPA, is compounding to penalize all American oil and gas production- which is some of the cleanest and most heavily regulated in the world.
The tax will lead to less energy security and higher energy prices for American families and businesses.[Emphasis added]
“While some improvements to the EPA implementing rule were issued, there are still several fundamental concerns on appropriateness and costs. As such, we call on the next administration and the 119th Congress to repeal this punitive tax on American energy,” Bradbury added.
The fee could be an early target of the incoming Trump administration, especially now that President-elect Donald Trump nominated former Rep. Lee Zeldin (R-NY) to lead the agency. Trump’s EPA could roll the rule back or replace it with a more lenient rule.
Zeldin wrote on Monday, “It is an honor to join President Trump’s Cabinet as EPA Administrator. We will restore US energy dominance, revitalize our auto industry to bring back American jobs, and make the US the global leader of AI. We will do so while protecting access to clean air and water.”
It is an honor to join President Trump’s Cabinet as EPA Administrator.
— Lee Zeldin (@LeeMZeldin) November 11, 2024
We will restore US energy dominance, revitalize our auto industry to bring back American jobs, and make the US the global leader of AI. We will do so while protecting access to clean air and water. https://t.co/FQk9XPdgcw
Trump told the New York Post that Zeldin “will ensure fair and swift deregulatory decisions that will be enacted in a way to unleash the power of American businesses, while at the same time maintaining the highest environmental standards, including the cleanest air and water on the planet.”
Sean Moran is a policy reporter for Breitbart News. Follow him on X @SeanMoran3.