Reducing methane emissions was a key focus of the Biden administration. Congress designed the Waste Emissions Charge (WEC) to incentivize large oil and natural gas operators to reduce methane leaks. Congress recently voted to eliminate EPA’s rule implementing the WEC.
We take a quick look at the WEC, Congress’ action to eliminate EPA’s rule, and what comes next.
What is the waste emissions charge (WEC) for methane?
Congress included the waste emission charge (WEC) in the Inflation Reduction Act (IRA). The provision in the IRA requires large oil and natural gas operators to pay the charge if they exceed specific performance levels. The fee starts at $900 per metric ton of methane in 2024, then increases to $1,200 in 2025 and $1,500 in 2026 and beyond. EPA promulgated a rule implementing the WEC in November 2024 .
The IRA also directed EPA to update the Greenhouse Gas Reporting Rule and designed the WEC to not apply to facilities that were in compliance with EPA’s final rules requiring owners and operators to install emission control technologies and to increase monitoring for, and repair, unintended methane emission leaks (often referred to as EPA’s OOOOb/OOOOc regulations). By linking these three rules, Congress intended for these rules to work together to reduce methane emissions from the oil and natural gas sector.
Congress Repealed the WEC—What Does That Mean?
In February 2025, Congress voted to eliminate EPA’s rule implementing the WEC using the Congressional Review Act (CRA).Under the CRA, EPA cannot reissue the rule in “substantially the same form” or issue “a new rule that is substantially the same” unless “specifically authorized” by Congress in a later-enacted law.
The CRA, however, does not change or remove the underlying requirement in the IRA for oil and natural gas sources to pay the fee on their applicable methane emissions. While many expect Congress to repeal this requirement as part of its budget bills, until that time, the obligation to pay a fee remains. We do not expect the Trump administration to look to revise the implementation rule or collect the fee.
What’s next for methane regulation in the U.S.?
It is unclear how this will impact methane emission reductions in the U.S. There was broad industry opposition to the WEC, but views on other methane rules like EPA’s OOOOb/OOOOc regulations vary. Some companies have advocated for reforming these rules rather than eliminating them.
There are important economic reasons for companies wanting to retain the rules overall. The administration may consider altering parts of EPA’s methane regulations but if companies are still required to install pollution control technology and look and fix emission leaks, there will be important methane reduction and public health benefits. And the public’s understanding of, and access to, methane emissions data will continue to improve regardless of federal decisions. We will be watching to understand how the administration balances these tensions.
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