Oil and natural gas companies will now be subject to a federal fee if they exceed certain levels of methane emissions, as per a new rule being finalized by the Biden administration. This rule, a result of a directive from Congress in the 2022 climate law, aims to incentivize the industry to adopt practices that reduce methane emissions, a potent climate 'super pollutant' responsible for about one-third of greenhouse gas emissions.
The fee, known as the Waste Emissions Charge, is designed to prompt early adoption of technologies that curb methane emissions and other harmful pollutants. Excess methane emissions could incur fees starting at $900 per ton in 2024, escalating to $1,500 per ton by 2026.
