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 Wednesday.
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 tpy of CO2e.
Methane is the most prevalent greenhouse gas after carbon dioxide that tends to leak into the atmosphere undetected from drill sites, gas pipelines and other oil and gas infrastructure.
The fee started at US$900/t of methane emitted in 2024, and increased to US$1200 in 2025, and US$1500 for 2026 and beyond. The EPA last year finalised 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.
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World Pipelines’ February 2025 issue
The February 2025 issue of World Pipelines includes a keynote section on digitalisation, outlining how to confront cybersecurity challenges in pipeline operations. This issue also features a Q&A on inline inspection, a pipeline machinery focus, and technical articles on construction, flow measurement, weld inspection technology, remote operation, and systems and software.