The Biden administration on Friday proposed new regulations that would impose fines on oil and gas companies for methane emissions, the Environmental Protection Agency (EPA) announced.
The policy will require companies to pay a fine of $900 per tonne if they emit methane in excess of government-set limits starting this year, with the cost per tonne exceeding government standards set to rise by 2025. It will jump to $1,200 in 2020 and $1,500 after 2026. , according to To the EPA. The agency has touted the proposal as a tool to reduce methane emissions, but energy producers have criticized the proposal, saying it could complicate the regulatory environment and drive up energy costs for consumers.
EPA Administrator Michael Regan said of the proposal, “Today's proposal, if finalized, will combine complementary technical standards and historic “It will support a set of resources.” “We are focused on working with businesses, states, and communities to ensure America leads in the adoption of technology and innovation that helps develop a clean energy economy.” (Related: Biden administration kicks off 2024 with $1 billion worth of new regulations)
'Outrageous': EPA officials fly helicopters over Texas oil fields to crack down on methane emissions from drillinghttps://t.co/vg5JmFJ7jP
— Daily Caller (@DailyCaller) August 9, 2022
If finalized and implemented as planned, this proposal would be the first direct federal tax on emissions in the United States. according to In the New York Times. Congress approved President Joe Biden's signature climate bill, the Inflation Control Act, which also includes $1 billion in grants and subsidies aimed at improving methane leak detection. ing.
The agency estimates that one-third of the global warming currently occurring is caused by methane, and the energy sector is the nation's most important source of industrial methane emissions. It is specified. environmental activist malicious Natural gas production is particularly used as a source of methane emissions, but natural gas burns cleaner compared to other fossil fuels such as coal. according to To the U.S. Energy Information Administration.
“The world is counting on U.S. energy producers to bring stability to an increasingly unstable world, and this punitive tax increase will “This is a serious mistake that undermines America's energy dominance.”petroleum research institute Said of suggestions. “While we support sensible federal methane regulations, this proposal would create an inconsistent and confusing regulatory regime that would only stifle innovation and undermine our ability to meet growing energy demands. .”
Although the EPA predicts the regulation will have only a limited impact on Americans' energy costs, the policy is effectively a “natural gas tax” and will almost certainly drive up costs, according to Power. said Larry Behrens, director of communications for The Future. Daily Caller News Foundation. Shortly after House Speaker Mike Johnson took over as speaker in October, dozens of Republicans in his caucus sent him a letter asking for the enabling legislation behind the EPA's Friday proposed regulation. He called on the government to make efforts to abolish it.
Friday's proposal complements a December 2023 EPA proposal on methane detection requirements, which independent oil and gas companies strongly opposed, saying it would increase compliance costs and put them at a disadvantage compared to larger companies. There is.
The EPA did not immediately respond to a request for comment.
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