US Republicans seek to overturn Biden's methane fee rule for oil, gas producers

US congressional Republicans on Feb. 4 introduced joint resolutions to overturn the Biden administration's final rule for a new methane fee on waste emissions from oil and gas operations.

Twenty-five Republican senators introduced to the Senate a joint resolution under the Congressional Review Act to overturn the US Environmental Protection Agency's rule to implement the proposed methane fee. The resolution was filed within a 60-days-of-Senate-session period allowing for fast-track procedures that prohibit a Senate filibuster.

The EPA announced the final rule on Nov. 12, 2024, a week after voters elected Donald Trump as President and handed Republicans a 53-seat majority in the Senate and 218-seat majority in the House of Representatives.

The final rule set out terms for implementing a new waste emissions charge that applies to oil and natural gas facilities with emissions that exceed a threshold of 25,000 mt of CO2 equivalent per year. The fee, as called for in the Inflation Reduction Act, would start at $900/mt in 2024, rising to $1,200/mt in 2025, and to $1,500/mt for 2026 and beyond.

The CRA allows the House and Senate to jointly overturn agency rules through resolutions that require simple majority votes and a presidential signature. Congress can also override presidential vetoes with the support of two-thirds majorities.

In the House, Representative August Pfluger, Republican-Texas, introduced a companion resolution.

"Biden's burdensome natural gas tax has handicapped technological innovation, reduced supplies of affordable energy, and increased both costs and emissions," Pfluger said in a statement.

In a related move, Senator Ted Cruz, Republican-Texas, on Jan. 16 introduced legislation to repeal the methane fee provisions in the IRA.

Because the fee was required in the IRA, Republicans are also seeking to include a repeal as part of budget reconciliation, a process that avoids a 60-vote requirement in the Senate. Senate Budget Committee Chairman Lindsey Graham, Republican-South Carolina, Feb. 7 released text of the Senate's fiscal year 2025 budget resolution, which will lay the groundwork for budget reconciliation. The committee's press release said the reconciliation measure would end the methane fee and support on and offshore lease sales, without providing greater detail.

Trade, environmental groups weigh in

Oil and gas trade groups that have criticized the EPA's proposed methane fee rule voiced support for the CRA effort.

"It's critical to negate these punitive regulatory requirements now, while we work to undo the underlying statute that penalizes American-made oil and natural gas and also fails to account for the significant progress we've made and will continue to make to reduce methane emissions as a sector," Anne Bradbury, CEO of the American Exploration & Production Council, said in a statement.

The Independent Petroleum Association of America said that the methane fee was "passed without appropriate understanding of its impact or industry safeguards."

The Sierra Club and other environmental groups issued statements on Feb. 4 arguing the methane fee and related regulations are a commonsense measure to curb excessive waste emissions.

"Responsible companies will never be subject to the charge: technology to monitor and stop leaks is readily available and easy to implement, so only wasteful, careless corporations will face a fee for excessive methane pollution," Mahyar Sorour, director of Beyond Fossil Fuels policy at the Sierra Club. "Reducing methane pollution is a win-win for communities, the climate and consumers."