On January 26, 2024, the Environmental Protection Agency (EPA) proposed regulations to implement the Methane Emissions Reduction Program of the Inflation Reduction Act (IRA). This program imposes an annual charge on methane emissions from oil and gas facilities.
In the IRA, Congress set a methane "waste emissions charge" of $900 per metric ton of methane in reporting year 2024, increasing to $1,200 per metric ton in 2025 and $1,500 per metric ton in 2026 and thereafter. The EPA's proposal outlines calculation procedures, flexibilities, and exemptions to implement these waste emission charges.
On February 20, 2024, EPA extended the comment deadline. EPA is accepting comments on this proposed rulemaking until March 26, 2024.