WASHINGTON, Jan 13 (Reuters): The US on Friday proposed a fee on emissions of methane from big oil and gas producers as required under the 2022 climate law and as a backstop to wider regulations on the greenhouse gas from energy operations.
The fee, proposed by the Environmental Protection Agency, applies to large oil and gas facilities that report methane emissions of more than 25,000 metric tons of carbon dioxide equivalent per year.
As directed by the Inflation Reduction Act (IRA), the fee starts at $900 per ton in 2024, increases to $1,200 for 2025 and $1,500 for 2026 and beyond, the EPA said. It only applies to the emissions that exceed the specified levels.
Over time, fewer facilities will face the charge as they reduce their emissions and become eligible for compliance exemptions, the EPA said.
"Today's proposal, when finalized, will support a complementary set of technology standards and historic resources from the Inflation Reduction Act, to incentivize industry innovation and prompt action," EPA Administrator Michael Regan said in a release.
US proposes fee on methane from big oil, gas producers
FE Team | Published: January 13, 2024 22:15:36
US proposes fee on methane from big oil, gas producers
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