Last week, both the House and Senate voted to repeal the Waste Emissions Charge (WEC) that was originally passed as part of the 2022 Inflation Reduction Act.
The legislation directed the EPA to set a fee based on a formula calculation for methane emissions for facilities emitting more than 25,000 tons of carbon dioxide equivalent per year. The fee started at $900 per metric ton in 2024 and was to increase to $1,200 in 2025 and $1,500 in 2026.
In addition to the fee structure, last November, the EPA finalized WEC methane emission and reporting rules, noting that requirements applied only to petroleum and natural gas facilities and not other methane-producing industries. The definition of a facility, for the purpose of these requirements, included production, storage, gathering, transmission and compression facilities and related equipment.
The timing of these regulations last fall subjected them to the Congressional Review Act, which allows Congress to pass a resolution to undo rules ratified in the final few months of a president’s term. If the resolution passes and the new president signs it, the rule is terminated and agencies cannot issue similar rules without congressional approval. The reversal of these particular requirements and related fees is a win for the oil and gas industry, and president is expected to sign the repeal of the law in the coming days.
About Schneider Downs Energy & Resources Services
The Schneider Downs Energy & Resources industry group provides specialized financial advice and services to our clients in the oil and gas, mining and aggregates, forest products and alternative fuel and energy industries throughout the Columbus and Pittsburgh regions. Our extensive knowledge of industry issues enables us to provide proactive audit, tax and management consulting services.
To learn more, visit our Energy and Resources Industry Group page.
