Wedoany.com Report-Feb 28, On February 27, 2025, the U.S. Senate voted to approve a resolution reversing a Biden administration policy that introduced a fee on methane emissions. This decision targets a measure previously set by the Environmental Protection Agency (EPA) aimed at reducing emissions of methane, a significant greenhouse gas, from major oil and gas producers. The Senate utilized the Congressional Review Act, a process enabling Congress to nullify recent federal regulations with a majority vote, effectively canceling the fee structure established by the EPA.
A flare burns excess natural gas in the Permian Basin in Loving County, Texas, U.S. November 23, 2019. Picture taken November 23, 2019.
The House of Representatives had passed a similar resolution on February 26, 2025. The methane fee originated from the 2022 Inflation Reduction Act, which instructed the EPA to impose charges on methane emissions from facilities exceeding 25,000 tons of carbon dioxide equivalent annually. The fee began at $900 per metric ton of methane in 2024, rising to $1,200 in 2025, and reaching $1,500 for 2026 and subsequent years.
Methane ranks as the second most common greenhouse gas after carbon dioxide and often escapes unnoticed from drilling operations, gas pipelines, and related infrastructure in the oil and gas sector. Last year, the EPA finalized separate methane emission and reporting standards for this industry, which encountered minimal resistance from oil and gas companies.
Industry organizations expressed support for the resolutions passed by both the Senate and House, encouraging President Donald Trump to sign the legislation promptly. Jeff Eshelman, President of the Independent Petroleum Association of America, stated: "The Biden administration and Democrats in Congress established the methane fee to target and penalize the oil and natural gas sector, despite the existing EPA regulatory framework."
In response, Senator Sheldon Whitehouse, the leading Democrat on the Senate environment committee, remarked: "This resolution will increase energy costs and diminish environmental quality for consumers." The debate reflects differing views on balancing environmental regulations with industry interests, with the resolution now awaiting presidential approval to take effect.
