Oil and natural gas companies for the first time will have to pay a federal fee if they emit dangerous methane above certain levels under a rule being made final by the Biden administration.
The Environmental Protection Agency rule follows through on a directive from Congress included in the 2022 climate law. The new fee is intended to encourage industry to adopt best practices that reduce emissions of methane - the primary component of natural gas - and thereby avoid paying.
Methane is a climate 'super pollutant" that is far more potent in the short term than carbon dioxide and is responsible for about one-third of greenhouse gas emissions. The oil and natural gas sector is the largest industrial source of methane emissions in the United States, and advocates say reduction of methane emissions is a crucial way to slow climate change.
The rule, set to be announced Tuesday at an international climate conference in Azerbaijan, comes hours after President-elect Donald Trump named former New York congressman Lee Zeldin to head the agency in Trump's second term. If confirmed by the Senate, Zeldin is expected to move to reverse or loosen dozens of environmental regulations approved under President Joe Biden as Trump seeks to establish U.S. "energy dominance" worldwide.
Trump is likely to target the methane fee amid a flurry of expected actions he has promised to deregulate the oil and gas industry.