Background: Troubled from the Start

Several groups of lawmakers have proposed legislative measures to overturn the Waste Emissions Charge (WEC) aka the methane fee rule, finalized by the EPA in November 2024. These efforts include joint resolutions under the Congressional Review Act (CRA), legislation to repeal the fee, and potential inclusion of a repeal within budget reconciliation. The CRA allows for rescinding of regulation that was finalized by the previous Congress within the last 60 working days.

The final WEC rule, part of the Inflation Reduction Act, imposed per-ton methane fees on oil and natural gas facilities emitting over a 25,000 mt of CO2 equivalent/year threshold, with 2024 costs set at $900/mt and then rising to $1,200/mt in 2025 and $1,500/mt for 2026 and later.

Pathways to Repeal

What would it take to repeal the WEC? There are several options:

• Congress would need to pass separate legislation repealing the methane fee.

• The CRA allows Congress to overturn certain federal agency actions. The CRA resolution introduced by Republican lawmakers can only rescind the implementation rule for the methane fee.

• State coalitions and industry groups could also challenge the WEC fees in court.

On February 4, a group of 25 senators introduced joint resolutions under the CRA seeking to overturn EPA’s final rule for a new methane fee oil and gas operational emissions. The resolution was filed within a period that allows fast-track procedures and prohibition of Senate filibuster tactics.

Under CRA rules, the House and Senate are empowered to propose resolutions to jointly overturn agency rules: Resolution approval requires only simple majority votes and a presidential signature.

Several Texas legislators have also introduced an additional resolution and legislative proposals to repeal the WEC methane fees.

A repeal of the WEC fee is also possible as part of a budget reconciliation process. A Senate Budget Committee press release explains that the budget reconciliation measure would end the methane fee, among other financial revisions and security efforts.

Progress vs. Penalty

Many industry groups support the CRA and legislative efforts to overturn the WEC fees implementation as oil and gas producers continue to reduce VOC and GHG emissions. Several trade groups say the impact of the fees would diminish research and implementation of significant emissions capture and reductions efforts already in progress.

Maintaining US energy security is a priority for the industry, and progress through technological innovation and continued improvement in operations is a sustainable pathway to a cleaner energy future.

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.