Congress kills EPA methane fee, handing oil and gas a climate win
S.J.Res. 12 — A joint resolution providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Environmental Protection Agency relating to "Waste Emissions Charge for Petroleum and Natural Gas Systems: Procedures for Facilitating Compliance, Including Netting and Exemptions". · Filed by John Hoeven (R-ND) · 26 cosponsors · Introduced Feb 4, 2025 · Reported out
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What it does
This is a Congressional Review Act resolution that would kill an EPA rule establishing a waste emissions charge (tax) on methane leaks from oil and gas operations. The rule, finalized in November 2024, created procedures for companies to comply with the charge, including netting and exemption options. If passed, the rule would be nullified and oil and gas companies would no longer face this federal methane emissions fee.
Why we flagged it
This is a straightforward Congressional Review Act disapproval resolution targeting an EPA environmental rule. It uses the fast-track CRA process to eliminate a methane emissions charge without committee debate, exemplifying the use of CRA as a deregulatory tool.
What the text implies
- Disapproval under CRA is permanent: the EPA cannot reissue a substantially similar rule without new congressional authorization, effectively locking in deregulation for the remainder of this Congress and beyond.
- The rule's netting and exemption procedures are also voided, eliminating compliance flexibility that some operators may have relied on for planning.
The full analysis lists 3 implications of this text.
Who stands to gain
petroleum and natural gas operators; oil and gas exploration and production companies; natural gas processors and distributors