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The Environmental Protection Agency has finalized a rule aimed at reducing methane emissions from oil and gas production, a crucial step in addressing climate change. This rule, mandated by the Inflation Reduction Act, imposes fees on companies exceeding methane emission thresholds, incentivizing them to repair leaks and capture the potent greenhouse gas. The fee structure, coupled with financial incentives for leak repairs, is designed to reduce methane emissions by 1.2 million metric tons annually, equivalent to taking millions of cars off the road. This rule’s inclusion in a major climate law makes it more difficult for future administrations to dismantle, ensuring its long-term impact on reducing methane pollution and mitigating climate change.
The Biden administration is implementing a new rule that will impose a federal fee on oil and gas companies exceeding specific methane emission levels. This rule, announced at COP29, fulfills a congressional directive within the 2022 climate law and aims to reduce one of the most potent greenhouse gases. The fee, expected to begin at $900 per ton in 2024 and increase to $1,500 per ton by 2026, aims to incentivize the adoption of emission-reducing technologies and reduce methane emissions by 1.2 million metric tons by 2035, equivalent to removing eight million cars from the road for a year. While industry groups are expected to oppose the rule, environmental organizations support it, advocating for the oil and gas sector to be held accountable for its contributions to climate change.
It is truly alarming to learn that methane is seeping out of US landfills at rates higher than previously thought. The fact that methane is 80 times worse than CO2 when it comes to warming our planet is a stark reminder of the urgent need to address this issue. As someone who works in the gas industry dealing with landfill gas, I understand the importance of capturing and refining methane as a renewable energy source. I am regularly tasked with detecting methane leaks on our site and ensuring compliance with EPA regulations. Despite our efforts, it is clear that more needs to be done to mitigate the impact of methane emissions.… Continue reading
John Q. Hosedrinker