WEC: Back to the Future

In February 2025, both the US Congress and Senate approved a Congressional Review Act (CRA) resolution to repeal the Waste Emissions Charge (WEC), originally part of the 2022 IRA climate, tax, and healthcare bill. The EPA was prepared to begin assessing fossil fuel emission volumes in November 2024. The repeal resolution was signed by President Trump in mid-March, effectively blocking implementation of the WEC for industrial methane emissions.

For oil and gas producers emitting over 25,000 metric tones of CO2 equivalent annually, the WEC program would have charged per/ton fees of $900 for 2024 emissions, $1,200 in 2025, and $1,500 in 2026. The EPA methane rules sparked multi-state legal action.

Disincentivizing Emissions Progress

A fundamental flaw of the WEC program was its steep financial disincentive to pursue monitoring and measuring of methane releases and emissions – as corporate self-monitoring expanded and additional leaks were found and reported, companies would be assessed ever-increasing fines. Eliminating the financial penalty for finding and reporting methane emissions will allow for continued investment in methane monitoring and abatement, and will help ensure reasonable energy prices for both industrial users and consumers.

The WEC was controversial from the start – many methane leaks and emissions are, by their nature, extremely difficult to find and accurately measure.

Recission of the WEC program and escalating fines is an opportunity for the oil & gas industry to invest in technologies, tools and technologies (without the financial drain of WEC fees) to effectively capture/block methane and reduce leaks.

EPA: New and Revised

The EPA is undergoing a significant shift in regulatory priorities and enforcement. Under new leadership, the EPA will revise its focus to grow American energy.

Legally the IRA provisions, including the WEC, are still in force as part of US law; however, EPA enforcement of IRA fees for industry methane emissions is unlikely, as many regulations are under review and the IRA may be legislatively rescinded in its entirety.

The EPA explanation of WEC status: “This regulation no longer has any force of law and is not in effect, and facilities will not be required to submit their WEC filings by September 2, 2025. EPA is currently evaluating options and obligations for implementing Clean Air Act section 136(c-g) and will provide additional information to the regulated community at an appropriate time.”

Looking Forward: More Production, Less Emissions

Despite shifting policy priorities, the oil and gas industry is primed to continue its efforts to reduce emissions and can now do so without facing punitive charges allowing for greater investment into innovation.

As operators continue to pursue cost-effective strategies to minimize methane emissions without compromising production, innovative technology is at the forefront. BioSqueeze provides a proven solution 3-4x more effective than traditional sealants for restoring cement bond to permanently eliminate methane leaks at the wellhead.