Congress Kills Biden Era Methane Fee on Oil, Gas Producers

The U.S. Senate on Feb. 27 voted on a resolution that would overturn the Biden administration's proposed fee on methane emissions, one of the previous Environmental Protection Agency's (EPA) final measures to force big oil and gas producers to slash emissions of the powerful greenhouse gas.

The Senate passed the resolution under Congressional Review Act process, which allows Congress to reverse new federal rules with a simple majority, effectively overturning the escalating charge on oil and gas producers set by the agency they have called a tax.

It follows passage of a similar resolution by the House on Feb. 26.

The methane fee was mandated by the 2022 Inflation Reduction Act, which directed the EPA to set a charge on methane emissions for facilities that emit more than 25,000 tons per year of CO₂e.

Methane is the most prevalent greenhouse gas after CO₂ that tends to leak into the atmosphere undetected from drill sites, gas pipelines and other oil and gas infrastructure.

The fee started at $900/ metric ton (mt) of methane emitted in 2024, and increased to $1,200/ mt in 2025, and $1,500/ mt for 2026 and beyond.

The EPA last year finalized methane emission and reporting standards for the oil and gas sector, which faced less opposition from oil and gas companies.

Industry groups applauded the passage of the resolutions in the House and Senate and urged President Donald Trump to quickly sign the legislation.

"The Biden administration and Democrats in Congress passed the methane tax to single out and punish the oil and natural gas industry despite its already burdensome EPA regulatory framework," said Independent Petroleum Association of America President Jeff Eshelman.

Democratic Senator Sheldon Whitehouse, top Democrat on the Senate environment committee, said the resolution would raise energy prices and weaken environmental quality for consumers.