The Republican-led Congress has successfully voted to repeal a federal methane fee, a key element of President Joe Biden’s climate policy, targeting oil and gas producers releasing high levels of the potent greenhouse gas methane.
The big picture: The fee, aimed at controlling the significant climate impact of methane emissions, was set to bring in substantial revenue, though it had not yet come into effect.
- The Senate’s 52-47 vote during Thursday’s session, following a similar decision in the House, clears the path for President Donald Trump to sign off on the repeal.
- The fee structure was designed to target major oil and gas companies emitting high levels of methane, with a proposed fee of $900 per ton, slated to increase to $1,500 by 2026.
Zoom in; The timing of the fee implementation made it susceptible to repeal through the Congressional Review Act, allowing Congress to overturn regulations finalized towards the end of a presidential term.
- The move to repeal the methane fee has garnered criticism from environmental advocates, with concerns raised about the influence of Big Oil in Congress and the potential negative impact on climate change efforts.
What they’re saying: Industry responses have been divided, with the American Petroleum Institute (API) welcoming the repeal as a move that eliminates what they view as a punitive tax stifling energy production, while environmentalists argue that it undermines efforts to reduce emissions and drive industry innovation.
- “Thanks to industry action, methane emissions continue to decline as production increases, and we support building on this progress through smart and effective regulation,” said API executive vice president Amanda Eversole.
