GAIN Statement: Methane Tax Comes with Hidden Consequences

Last week, the U.S. Environmental Protection Agency (EPA) announced a proposed rule that would establish a methane tax on emitters in the oil and gas industry. The proposed tax, named the “Waste Emissions Charge,” is a product of the Inflation Reduction Act passed in 2022 and would levy a fine of $900, increasing up to $1500 after 2024, per every excess ton of methane emissions. Over the last two decades, the U.S. has significantly reduced its methane emissions through the growing adoption of natural gas and solar and wind technologies.

Below is a statement that can be attributed to me, Craig Stevens, spokesman for the GAIN Coalition and former senior advisor to U.S. Energy Secretary Sam Bodman:

“This latest EPA rule is evidence that much of the Inflation Reduction Act was not aimed at reducing inflation. In fact, this misguided policy will likely leave Americans with higher energy bills as energy producers cut back on their supply. Imposing this tax will complicate America’s ability to meet the nation’s growing energy demand as suppliers are buried in red tape.

The U.S. should be pursuing an all-of-the-above strategy to energy security and supporting each vital sector that contributes to our energy independence.”

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