Biden Administration Launches Historic Methane Fee for Oil, Gas Drillers [Video]

The Biden administration is finalizing a new rule that will require oil and natural gas companies to pay a federal fee if they exceed certain levels of methane emissions.

The move, which the Environmental Protection Agency (EPA) will announce on Tuesday at the COP29 international climate conference in Azerbaijan, is aimed at reducing one of the most potent greenhouse gases.

It follows through on a directive from Congress included in the 2022 climate law, which is expected to be finalized by early next year after publication in the Federal Register.

Methane, a major component of natural gas, is known to be a powerful climate ‘super pollutant’ with a warming affect far stronger than carbon dioxide in the short term.

The oil and gas sector is the largest U.S. industrial source of methane emissions.