Congress Overturns Biden-Era Methane Fee on Energy Producers
(Reuters) — The U.S. Senate on Thursday voted on a resolution that would overturn the Biden administration's proposed fee on methane emissions, one of the previous Environmental Protection Agency's final measures to force big oil and gas producers to slash emissions of the powerful greenhouse gas.
The Senate passed the resolution under Congressional Review Act process, which allows Congress to reverse new federal rules with a simple majority, effectively overturning the escalating charge on oil and gas producers set by the agency they have called a tax.
It follows passage of a similar resolution by the House on Wednesday.
The methane fee was mandated by the 2022 Inflation Reduction Act, which directed the EPA to set a charge on methane emissions for facilities that emit more than 25,000 tons per year of carbon dioxide equivalent.
Methane is the most prevalent greenhouse gas after carbon dioxide that tends to leak into the atmosphere undetected from drill sites, gas pipelines and other oil and gas infrastructure.
The fee started at $900 per metric ton of methane emitted in 2024, and increased to $1,200 in 2025, and $1,500 for 2026 and beyond.
The EPA last year finalized methane emission and reporting standards for the oil and gas sector, which faced less opposition from oil and gas companies.
Industry groups applauded the passage of the resolutions in the House and Senate and urged President Donald Trump to quickly sign the legislation.
"The Biden administration and Democrats in Congress passed the methane tax to single out and punish the oil and natural gas industry despite its already burdensome EPA regulatory framework," said Independent Petroleum Association of America President Jeff Eshelman.
Democratic Senator Sheldon Whitehouse, top Democrat on the Senate environment committee, said the resolution would raise energy prices and weaken environmental quality for consumers.
The American Petroleum Institute (API) also praised the passage of a Congressional Review Act resolution aimed at repealing the EPA’s Waste Emissions Charge (WEC), a methane fee established under the Inflation Reduction Act.
API Executive Vice President Amanda Eversole called the measure a “duplicative, punitive tax” that hinders energy innovation. She emphasized that industry-led efforts have already driven methane emissions down while increasing production, advocating for policies that support American energy leadership.
API argues the WEC unfairly penalizes companies that have already invested in methane-cutting technologies, noting that U.S. methane emissions fell by 42% from 2015 to 2023 while production rose by 51%. With oil and gas producers already subject to EPA methane regulations, API supports alternative policies that balance emissions reductions with continued energy development.
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