EPA Enacts Final Rule to Reduce Methane Emissions

The rule imposes fees on excessive methane emissions in the oil and gas sector, promoting reductions aligned with climate goals.

• By Robert Yaniz Jr.
• Nov 13, 2024

Aiming to cut down methane emissions, the U.S. Environmental Protection Agency (EPA) has finalized a rule targeting the oil and gas industry. This rule—part of the Biden administration’s Methane Emissions Reduction Action Plan—establishes a Waste Emissions Charge, mandating fees on methane emissions from high-emitting facilities exceeding federal limits. 

According to a recent release, the EPA estimates the new rule could reduce cumulative methane emissions by 1.2 million metric tons. This is the equivalent of removing almost 8 million cars from the road annually, yielding up to $2 billion in climate benefits by 2035. Under this rule, the Waste Emissions Charge begins at $900 per metric ton in 2024, reaching $1,500 by 2026.

Only facilities emitting over 25,000 metric tons of carbon dioxide-equivalent methane annually are subject to these charges. Facilities that meet Clean Air Act standards for emissions may qualify for exemptions once certain conditions are met, leading to more proactive reduction.

“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,” EPA Administrator Michael S. Regan said in a statement. “EPA has been engaging with industry, states, and communities to reduce methane emissions so that natural gas ultimately makes it to consumers as usable fuel instead of as a harmful greenhouse gas.”

This move complements over $1 billion allocated under the Methane Emissions Reduction Program for monitoring and cutting methane emissions, including technological support through collaboration with the Department of Energy. By setting clear financial penalties and reinforcing compliance through incentives, the EPA aims to encourage industry-wide changes, such as enhanced methane detection and better emissions control practices. 

More on the EPA’s efforts is available on the Methane Emissions Reduction Program website.