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Congress Repeals Biden-Era Methane Fee for Oil and Gas Producers

Congress Repeals Biden-Era Methane Fee for Oil and Gas Producers/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The Republican-controlled Congress voted to repeal a Biden-era methane fee aimed at reducing planet-warming emissions from oil and gas producers. The Senate passed the measure 52-47, following a House vote Wednesday, sending it to President Donald Trump, who is expected to sign it into law. The methane fee, part of the 2022 Inflation Reduction Act, had yet to take effect and was intended to curb emissions by penalizing excessive methane leaks. While environmentalists call the repeal a win for Big Oil, Republicans argue it protects domestic energy production from unnecessary regulations.

FILE – A motorist drives past the CHS oil refinery Sept. 28, 2024, in McPherson, Kan. (AP Photo/Charlie Riedel, File)

Methane Fee Repeal Quick Looks

  • Congress votes to repeal Biden-era methane fee, sending bill to Trump for approval.
  • Senate passes measure 52-47, following a House vote Wednesday.
  • Methane fee aimed at curbing emissions, but never took effect due to delayed EPA rulemaking.
  • Oil and gas industry supports repeal, calling the fee “punitive” and unnecessary.
  • Environmental groups condemn the move, saying it benefits major polluters.
  • Trump expected to sign the repeal, continuing his pro-oil and gas policies.

Congress Repeals Biden-Era Methane Fee for Oil and Gas Producers

Deep Look

Congress Repeals Biden-Era Methane Fee, Sending Bill to Trump

In a major rollback of Biden-era climate policy, the Republican-led Congress has voted to repeal a federal methane fee that targeted high-polluting oil and gas companies. The Senate passed the repeal 52-47 on Thursday, after the House voted in favor on Wednesday, sending the bill to President Donald Trump, who is expected to sign it into law.

The methane fee was introduced under the 2022 Inflation Reduction Act but never took effect due to delayed rulemaking by the Environmental Protection Agency (EPA). The fee was designed to reduce methane emissions, a potent greenhouse gas that contributes significantly to global warming.

A Win for the Oil and Gas Industry

The repeal is a significant victory for the oil and gas sector, which opposed the fee from the start. The American Petroleum Institute (API), the largest lobbying group for the industry, celebrated the decision, arguing that companies are already reducing methane emissions voluntarily.

“Thanks to industry action, methane emissions continue to decline as production increases,” said Amanda Eversole, API’s executive vice president and chief advocacy officer.

Critics, however, argue that the repeal undermines efforts to combat climate change and rewards companies that fail to control methane leaks.

“Republicans are helping the worst offenders of methane leakage,” said Sen. Sheldon Whitehouse (D-RI), who opposed the repeal.

Why the Methane Fee Was Controversial

The methane fee, originally set at $900 per ton (rising to $1,500 by 2026), was meant to push companies to adopt better emission controls. However, many major oil and gas producers already met the EPA’s methane reduction standards, meaning the fee would mainly impact smaller, high-polluting companies.

According to a recent study, about half of all methane emissions from wells come from just 6% of smaller producers. The EPA projected that the fee would reduce 1.2 million metric tons of methane emissions by 2035, equivalent to removing 8 million cars from the road for a year.

The Role of the Congressional Review Act

The repeal was made possible through the Congressional Review Act (CRA), which allows Congress to overturn late-term regulations set by previous administrations. If Trump signs the bill, the EPA will be barred from implementing a similar methane fee in the future.

Environmental groups condemned the move, calling it a “handout to Big Oil.”

“One of Congress’s top priorities is a blatant giveaway to the worst polluters in the fossil fuel industry,” said Tyson Slocum, director of Public Citizen’s energy program.

Republicans Frame Repeal as an Energy Policy Win

Republican lawmakers argue that the methane fee was an unnecessary tax that would have increased energy costs and discouraged domestic natural gas production.

“We should be expanding natural gas production, not restricting it,” said Sen. Shelley Moore Capito (R-WV).

Since taking office, Trump has aggressively rolled back environmental regulations. On his first day in office, he declared a national energy emergency, lifted a pause on new liquefied natural gas (LNG) export terminals, and withdrew the US from the Paris Climate Agreement. The repeal of the methane fee continues this pro-industry shift.

What Happens Next?

With Trump’s signature expected soon, the repeal will mark another victory for the fossil fuel industry while delivering a setback for climate activists. The decision is likely to face legal challenges and could become a campaign issue in future elections, as Democrats push for stricter climate policies while Republicans prioritize energy independence.


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