President Joe Biden's Environmental Protection Agency finalized new rules Tuesday that would tax methane emissions from the oil and gas sector.
The new tax stems from Biden's comprehensive climate change bill passed by Congress, known as the Suppressing Inflation Act, which includes a waste emissions tax provision. The waste discharge mandate was mandated by Congress, but the Biden administration had discretion over how harshly to enforce it.
Rates start at $900 per tonne of methane emitted at certain performance levels during 2024. After that, the charges will increase. In 2025, it will increase to $1,200 per ton. In 2026, it will rise to $1,500 per ton. Meanwhile, rates will continue to rise each year thereafter, according to the EPA.
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EPA Administrator Michael said, “The final waste discharge fee will improve the efficiency of the oil and gas sector, support American jobs, protect clean air, and strengthen America's leadership on the world stage.'' “This is the latest in a series of actions under President Biden's methane strategy.” Regan said in a press release.
President Joe Biden's Environmental Protection Agency finalized new rules Tuesday that would tax methane emissions from the oil and gas sector.
Ahead of Tuesday's new methane emissions rule, Biden and his administration imposed another rule aimed at cracking down on methane. Shortly after taking office in 2021, he signed legislation reversing a Trump-era measure that reversed tougher methane emissions standards imposed under then-President Barack Obama.
While climate change advocacy groups such as the Clean Air Task Force have praised Biden's rules to limit methane emissions, Steve Milloy, a fellow at the Energy and Environmental Law Institute, called the measure “irrelevant.” Ta. Milloy said more than 95% of the greenhouse gases trapped in the Earth's atmosphere are water vapor and carbon dioxide, leaving little or no room for methane to be stored.
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Milloy also suggested that new methane emissions rules are likely to be less effective given that they target the oil and gas sector, but not the agricultural sector.
Milloy pointed out that rather than man-made power plants, “the biggest sources of methane are actually microorganisms.” According to the Washington Post, microbes are tiny organisms that live in cow stomachs, farmland, and wetlands.
Milloy also suggested that new methane emissions rules are likely to be less effective given that they target the oil and gas sector, but not the agricultural sector. (Michal Fludra/NurPhoto via Getty Images)
In addition to its effectiveness, Milloy pointed out that the tax would also benefit big oil companies, but hurt smaller oil companies.
“Because all these regulations are paralyzing competition,” Milloy said. “Taxing the oil industry would be everything to Big Oil.”
Republican Rep. Greg Murphy of North Carolina, who is running for re-election this year and was endorsed by Citizens for Responsible Energy Solutions, agreed that going after the oil and gas industry with this tax would “raise costs and discourage investment.” . ”
“Thankfully, this madness will end in January,” Murphy said.
President-elect Donald Trump has signaled he would scrap many of the green energy initiatives included in Biden's anti-inflation law.
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A headshot of President-elect Donald Trump and President Joe Biden stands between images of the Environmental Protection Agency flag fluttering over Washington, D.C., headquarters.
This week, the new president nominated former New York Congressman Lee Zeldin to be the next EPA administrator. Meanwhile, Republican Alaska Governor Mike Dunleavy has been floated as a candidate for President Trump's next energy secretary.
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Fox News Digital reached out to the White House and EPA for comment, but did not receive a response on the record. But in a fact sheet released Tuesday, the White House noted how the Biden-Harris administration is “leveraging America's historic climate leadership at home and abroad.”
