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A methane pollution tax on oil and gas faces a cloudy future under Trump
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A methane pollution tax on oil and gas faces a cloudy future under Trump

Oil and gas companies would have to pay a fee to release global warming methane into the atmosphere, under new Environmental Protection Agency regulations. But it is likely that the new Trump administration and Republicans in Congress will attempt to weaken or eliminate these fees.

Methane is the main component of natural gas and is also produced during the extraction of crude oil. Methane is one of the greenhouse gases that warms the planet, and it is 80 times more powerful than carbon dioxide.Scientific studies show that the oil and gas industry releases about three times as much methane as EPA estimates show. Methane leaks occur throughout the oil and gas production system, from drilling to fossil fuel transportation. Sometimes methane is released intentionally.

“EPA has engaged with industry, states and communities to reduce methane emissions so that natural gas ultimately reaches consumers as a usable fuel – rather than a harmful greenhouse gas” EPA Administrator Michael Regan said in a statement.

THE fees are outlined in President Biden’s signed climate lawthe Inflation Reduction Act. The EPA says they apply “only to waste emissions from high-emitting oil and gas facilities,” meaning those below allowable limits don’t have to pay fees. Violators would have to pay $900 per metric ton for anything released above the authorized limit. In two years, the fee would increase to $1,500 per ton.

The agency estimates the new fees will reduce methane emissions by 1.2 million tons through 2035 – “the equivalent of removing nearly 8 million gasoline-powered cars from the road for a year.”

The EPA says the fees are designed to work in tandem with rules finalized last year that reduce methane pollution from oil and gas operations. Republican-led states and industry groups are already challenging these regulations in court. The Supreme Court recently refused a blocking request to take effect

But under President-elect Donald Trump, the future of those rules is uncertain, and the oil industry says it will ensure they are changed or even eliminated.

“This is the wrong approach to methane policy,” Mike Sommers of the American Petroleum Institute said in a call with reporters. “We look forward to working with the new administration and Congress to repeal the regulation as quickly as possible.”

Some in the industry have called the fees a “methane tax” and are promising to eliminate them.

“This tax will lead to less energy security and higher energy prices for American families and businesses,” said Anne Bradbury, CEO of the American Exploration and Production Council, calling out the Trump administration and Congress “to repeal this punitive tax on American energy.” ”

Although fees can increase industry costs, the prices consumers pay are set by markets that include many other factors besides regulatory costs.. The Trump campaign did not respond to NPR’s request for comment on the fees.

An option to modify the methane levy regulations could be the Congressional Review Actwhich allows Congress to “rescind certain actions of federal agencies.” It’s also likely that the fees will face a legal challenge from states and industry groups that claim the EPA is overstepping its authority.

Environmental groups praised the Biden administration for the new fees.

“It’s heartening to see this effort to make polluters pay for leaking methane, a super climate pollutant,” said Maggie Coulter of the Center for Biological Diversity. “Ultimately, we know that curbing the climate emergency requires a rapid shift away from fossil fuel extraction.”

The charges come as the Biden administration convened a summit with China at the annual UN climate meeting, COP29, in Azerbaijan to reduce emissions of methane and other climate pollutants globally . This was a follow-up to the Global methane commitment launched last year at COP28, when more than 150 countries committed to reduce methane pollution by at least 30% by the end of the decade.

“The American people value clean air and healthy communities,” Christina Deconcini of the World Resources Institute wrote in a statement. “If Donald Trump tries to repeal this rule when he takes office, he would put Americans at risk.”

Copyright 2024 NPR