EPA rule targets methane emissions, critics say it’ll raise energy costs

19 hrs ago

Jack Aylmer Energy Correspondent

By Jack Aylmer (Energy Correspondent), Ian Kennedy (Video Editor), Mohammed Ali (Graphics)

For the first time, the Environmental Protection Agency (EPA) is finalizing a rule that requires oil and gas companies to pay for methane emissions. However, opponents argue that these standards could raise energy costs for Americans. They also raised questions about how long the new standards will even remain in effect with the Trump administration set to take over the White House.

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Starting in 2024, companies will face a $900 fee per ton of excess methane, which will increase to $1,200 in 2025 and $1,500 in 2026.

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The EPA anticipates that by 2035, this rule could reduce methane emissions by 1.2 million metric tons. That’s equivalent to removing almost 8 million gas-powered cars from the road for a year.

Over the next decade, it projects up to $2 billion in climate benefits and increased innovations in methane mitigation within the industry.

Methane, often called a “super pollutant,” has over 80 times the warming effect of carbon dioxide in the short term. According to the International Energy Agency, emissions have contributed nearly a third of the global temperature increase since the Industrial Revolution began in the 18th century

While the EPA claims the rule will help curb climate change, opponents argue it is unrealistic and could effectively act as a tax on American energy.

Oil industry groups and Republican-led states previously contested another Biden administration methane regulation in court. However, the Supreme Court recently declined to block it while the case proceeds in lower courts. This new EPA rule is expected to complement the earlier regulation.

Industry advocates, including the American Petroleum Institute, have expressed intentions to work with Congress to repeal the rule, hoping for support under incoming President-elect Donald Trump’s administration.

Tags: Donald Trump, Environmental Protection Agency, EPA, Joe Biden, Methane emissions, Pollution, zero-emissions

[Jack]

FOR THE FIRST TIME, BIG OIL IS GOING TO BE CHARGED FOR ITS METHANE EMISSIONS.

BUT THIS PLAN COULD RAISE ENERGY PRICES FOR EVERYDAY AMERICANS-

AND HOW LONG IT STAYS IN EFFECT REMAINS TO BE SEEN, WITH A NEW ADMINISTRATION PREPARING TO TAKE OVER THE WHITE HOUSE.

THE EPA FINALIZING A NEW RULE THIS WEEK THAT WILL MAKE OIL AND GAS COMPANIES PAY 900 DOLLARS PER TON OF EXCESS METHANE EMISSIONS STARTING THIS YEAR.

THAT FEE IS SET TO INCREASE BY 300 HUNDRED DOLLARS IN 20-25, BEFORE DOING SO AGAIN IN 20-26, HITTING FIFTEEN HUNDRED DOLLARS PER TON BY THAT TIME.

THE RULE WON’T GO INTO EFFECT UNTIL EARLY NEXT YEAR-

THOUGH THE EPA IS SET TO IMPOSE RETROACTIVE FEES ON COMPANIES FOR THEIR METHANE EMISSIONS PRIOR TO THAT.

METHANE, OFTEN REFERRED TO AS A ‘SUPER POLLUTANT,’ HAS OVER 80 TIMES THE WARMING IMPACT OF CARBON DIOXIDE IN THE SHORT TERM.

ACCORDING TO THE INTERNATIONAL ENERGY AGENCY, THESE TYPES OF EMISSIONS HAVE CONTRIBUTED TO NEARLY A THIRD OF THE RISE IN GLOBAL TEMPERATURES SINCE THE INDUSTRIAL REVOLUTION BEGAN IN THE SEVENTEEN HUNDREDS.

THE EPA CLAIMS THAT BY 20-35 THEIR NEW RULE COULD HELP REDUCE METHANE EMISSIONS BY 1.2 MILLION METRIC TONS-

THE EQUIVALENT OF TAKING NEARLY 8 MILLION GAS-POWERED CARS OFF THE ROAD FOR A YEAR.

OVER THE NEXT 10 YEARS, THE AGENCY SAYS IT WILL ALSO BRING CLIMATE BENEFITS OF UP TO 2 BILLION DOLLARS-

WHILE DRIVING METHANE MITIGATING INNOVATIONS IN THE OIL AND GAS SECTOR.

HOWEVER, OPPONENTS CLAIM THE NEW STANDARDS ARE UNATTAINABLE-

AND WOULD AMOUNT TO A TAX INCREASE ON AMERICAN ENERGY.

INDUSTRY GROUPS AND REPUBLICAN-LED STATES PREVIOUSLY CHALLENGED ANOTHER BIDEN ADMINISTRATION METHANE RULE IN COURT.

BUT LAST MONTH THE CHALLENGE FAILED AS THE SUPREME COURT CHOSE TO NOT BLOCK ENFORCEMENT WHILE THE CASE CONTINUES BEFORE LOWER-LEVEL JUDGES.

THIS NEW RULE IS EXPECTED TO WORK IN TANDEM WITH THE PREVIOUS ONE.

THE AMERICAN PETROLEUM INSTITUTE SAID ITS PREPARING TO WORK WITH CONGRESS TO REPEAL THIS LATEST METHANE REGULATION-

EXPECTING THEY’LL GET A MORE FAVORABLE OUTCOME FOR THEIR INDUSTRY INTERESTS UNDER PRESIDENT-ELECT DONALD TRUMP.

TO GET MORE STORIES ABOUT SHIFTING ENERGY POLICIES AMID THE UPCOMING PRESIDENTIAL TRANSITION IN THE U.S., DOWNLOAD THE STRAIGHT ARROW NEWS APP AND SIGN UP FOR ALERTS FROM ME- JACK AYLMER.