GHG Mitigation under the Clean Air Act

GHG Mitigation under the Inflation Reduction Act

Note: More information on EPA’s climate-related spending programs under the Inflation Reduction Act (IRA) is available at IRATracker.org.

Methane Emissions Reduction Program

Section 60113 of the Inflation Reduction Act (IRA) amended the Clean Air Act to add a new section 136 on “methane emissions and waste reduction incentive program for petroleum and natural gas systems.” Among other things, the new provision requires EPA to collect a charge from oil and gas producers for methane emissions that exceed specified thresholds beginning with emissions from 2024. The methane emissions charge starts at $900 per metric ton of methane emitted above the set threshold in 2024 and rises to $1,200 in 2026. Facilities will not be required to pay the charge if they are in compliance with regulations adopted pursuant to section 111(b) and (d) of the Clean Air Act and EPA determines that compliance with those regulations will result in equivalent or greater emissions reductions as would have been achieved if emissions controls proposed by EPA in November 2021 had been finalized and implemented.

On February 27, 2025, Congress passed H.J. Res. 35, a joint resolution of disapproval under the Congressional Review Act. If signed into law, it will void EPA's final rule on methane waste emissions, which it issued pursuant to section 60113 of the Inflation Reduction Act (IRA). 89 Fed. Reg. 91,094 (Nov. 18, 2024).

Second Trump Administration (2025-2028)

On February 27, 2025, Congress passed H.J. Res. 35, a joint resolution of disapproval under the Congressional Review Act. If signed into law, it will void EPA's final rule on methane waste emissions, which it issued pursuant to section 60113 of the Inflation Reduction Act (IRA). 89 Fed. Reg. 91,094 (Nov. 18, 2024).

Biden Administration (2021-2024)

On November 18, 2024, EPA published a final rule to implement the IRA’s methane emissions charge. 89 Fed. Reg. 91,094 (Nov. 18, 2024). The proposed Waste Emissions Charge follows the IRA’s directive to incentivize the adoption of industry best practices that reduce pollution. It also discusses how the charge will be implemented, from the calculation of the charge to the application of exemptions.