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Congress voted to repeal the Waste Emissions Charge (WEC), a methane fee central to former President Joe Biden's climate change efforts.
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The Senate and House voted to eliminate the WEC, and President Donald Trump is expected to sign the resolution.
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The American Petroleum Institute supported the repeal, calling the fee a "duplicative, punitive tax" on American energy production.
The Republican-controlled Congress voted along party lines to kill a federal fee on oil and gas producers that release high levels of methane.
The Waste Emissions Charge (WEC), part of the 2022 Inflation Reduction Act, was central to former President Joe Biden’s efforts to combat climate change.
The Senate voted 52-47 to repeal the fee Feb. 28, following a 220-206-1 House vote Feb. 26. President Donald Trump is expected to sign the resolution to eliminate the WEC, which started at $900/metric ton and was supposed to increase to $1,200/ton in 2025, and $1,500/ton for 2026 and beyond to incentivize companies to repair and prevent methane leaks.
The US Environmental Protection Agency (EPA) in the waning months of the Biden administration finalized the methane fee on oil and gas operations that release more than 25,000 tons/year of CO2 equivalent (OGJ Online, Nov. 14, 2024).
The timing made it subject to the Congressional Review Act (CRA), which allows Congress to pass a resolution to undo rules finalized in the last few months of a president’s term. If those resolutions pass and the president signs them, the rule is terminated and agencies cannot reissue a similar rule.
While most major oil and gas companies do not release enough to trigger the fee, EPA estimated that the rule would have resulted in cumulative emissions reductions of 1.2 million metric tons of methane (34 million metric tons CO2-equivalent) and over $550 billion in revenues to the US government (OGJ Online, Jan. 16, 2024).
The American Petroleum Institute (API) applauded the repeal, with Amanda Eversole, API executive vice president and chief advocacy officer, calling the fee a “duplicative, punitive tax on American energy production that stifles innovation.”
Congressional Republicans have targeted dozens of Biden administration rules using the CRA, including ending an Interior Department rule mandating oil and gas companies with offshore federal leases submit archaeological reports before they can begin production.
Cathy Landry | Washington Correspondent
Cathy Landry has worked over 20 years as a journalist, including 17 years as an energy reporter with Platts News Service (now S&P Global) in Washington and London.
She has served as a wire-service reporter, general news and sports reporter for local newspapers and a feature writer for association and company publications.
Cathy has deep public policy experience, having worked 15 years in Washington energy circles.
She earned a master’s degree in government from The Johns Hopkins University and studied newspaper journalism and psychology at Syracuse University.
