The Biden administration unveiled a new regulatory proposal Friday that would introduce a new tax on the fossil fuel industry, punishing producers that exceed a certain level of methane emissions.
The Environmental Protection Agency (EPA), which spearheaded the proposal, said it will help “tackle wasteful methane emissions” from the oil and gas sector, encouraging facilities with the highest emissions levels to meet or exceed higher levels of performance. The proposed rules would create the so-called Waste Emissions Charge, which begins at $900 per metric ton of wasteful emissions in 2024, and increases to $1,200 for 2025 and $1,500 for 2026 and beyond.
“Under President Biden’s leadership, EPA is delivering on a comprehensive strategy to reduce wasteful methane emissions that endanger communities and fuel the climate crisis,” EPA Administrator Michael Regan said in a statement. “Today’s proposal, when finalized, will support a complementary set of technology standards and historic resources from the Inflation Reduction Act, to incentivize industry innovation and prompt action.”
“We are laser-focused on working collectively with companies, states and communities to ensure that America leads in deploying technologies and innovations that aid in the development of a clean energy economy,” he continued.
“The Waste Emissions Charge will help encourage the oil and gas industry to stay on target to lower emissions,” EPA said in its announcement. “Oil and natural gas operations with methane emissions in excess of the emissions intensity levels established in the Inflation Reduction Act can reduce or eliminate any charge by deploying readily available technologies to reduce harmful and wasteful emissions.”
“This program will help to level the playing field for industry leaders already employing best practices and drive near-term opportunities for more widespread methane reductions while EPA and states work toward full implementation of the Clean Air Act standards,” it continued.
Thomas Catenacci is a politics writer for Fox News Digital.
