The U.S. Environmental Protection Agency (EPA) finalized methane fees for emitters in the oil and gas industry, but only time will tell on whether the changes stick with President-elect Donald Trump heading back to the White House.

The final rule, announced Nov. 12 by the outgoing Biden administration, was part of a directive in the Inflation Reduction Act of 2022 aimed at curbing methane emissions. A known precursor gas to ground-level ozone, which can be harmful to humans depending on exposure levels, methane traps heat in the atmosphere and is considered one of the biggest drivers of climate change.

“[The]EPA has been engaging with industry, states and communities to reduce methane emissions so that natural gas ultimately makes it to consumers as usable fuel—instead of as a harmful greenhouse gas,” said EPA Administrator Michael S. Regan.” Along with [the] EPA’s complementary set of technology standards and historic financial and technical resources under the Inflation Reduction Act, today’s action ensures that America continues to lead in deploying technologies and innovations that lower our emissions.”

As stated by the EPA, the Waste Emissions Charge—as it is officially called— is applicable only to waste emissions from high-emitting oil and gas facilities. The charge starts at $900 per metric ton of methane emitted in 2024. That rises to $1,200 in 2025, and $1,500 for 2026 and beyond. The rule applies to oil and gas facilities that report emissions of more than 25,000 metric tons per year of CO2 equivalent. Companies violating the rules will start paying penalties next year based on methane emissions reported in calendar year 2024.

Many oil and gas companies have already made significant strides in reducing methane emissions. With emissions equated to loss revenue potential, companies regularly use optical gas imaging cameras and other leak detection and repair (LDAR) equipment and services, as well as satellite detection and flyovers, to find leaks and repair them.

The rule was not applauded by the American Petroleum Institute (API).

“API supports smart, effective methane regulations, yet this rule hampers our ability to meet the growing energy needs of American families and businesses and fails to advance meaningful emissions reduction,” Dustin Meyer, president of policy, economics and regulatory affairs for API, said in a statement. “This is the wrong approach on methane policymaking, and we look forward to working with the incoming administration and new Congress to get this right.”

API pointed out that the industry’s methane emissions fell by 37% between 2015 and 2022, and industry-led collaborative initiatives are “helping to accelerate progress on methane emissions reductions by driving collaboration and sharing best practices across the industry.”

The new fees are expected to lower methane emissions by an estimated 1.2 million metric tons through 2035, which the EPA said is equivalent to removing nearly 8 million gas-powered cars from roads for a year.

The finalized rule follows the release in December 2023 of EPA final methane emission standards. The policy set standards to lower emissions from high-emitting equipment, mandated monitoring of methane leaks from well sites and compressor stations and directed companies to eliminate routine flaring of natural gas produced by new oil wells. It also established a monitoring program that requires third-party remote sensing to detect large methane releases from so-called “super emitters.”

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