Carper Praises New EPA Rule Boosting Methane Emission Cuts
TL/DR –
U.S. Senator Tom Carper has released a statement on the U.S. Environmental Protection Agency’s (EPA) final rule to reduce methane emissions from oil and gas production. The rule eliminates routine flaring of gas for new wells. Also, the Methane Emissions Reduction Program (MERP), the first-ever fee on greenhouse gas emissions by the federal government, is set to provide $1.5 billion to monitor and clean up excess methane emissions, implement a charge on reported methane emissions exceeding more than 25,000 metric tons of carbon dioxide equivalent gas, and is estimated to generate $6.35 billion over ten years.
WASHINGTON, D.C. – Final Rule on Methane Emissions Reduction from EPA
The U.S. Environmental Protection Agency (EPA) has released their final rule to curtail methane emissions from oil and gas production. This rule, advocated by U.S. Senator Tom Carper (D-Del.) and Chairman of the Senate Environment and Public Works Committee, will stop the unnecessary routine flaring of gas in new wells. See the Senator’s earlier recommendation to the agency.
The Importance of Reducing Methane Emissions
“To meet our ambitious climate targets, we must dramatically cut methane emissions, which are over 80 times more potent than carbon dioxide in the short term,” states Senator Carper. “I applaud EPA’s action to significantly curtail these emissions by ending the routine gas flaring from oil wells.”
Methane Emissions Reduction Program Overview
As part of the Inflation Reduction Act, Senator Carper spearheaded the Methane Emissions Reduction Program (MERP), marking the federal government’s first fee on greenhouse gas emissions. The new EPA program provides $1.5 billion for monitoring and mitigating excessive methane emissions from the oil and gas sector. Starting in 2025, the program will impose a charge on methane emissions over 25,000 metric tons of carbon dioxide equivalent gas, gradually increasing to a fee of $1,500 per excess ton.
Program Impact and Consumer Costs
The Congressional Budget Office forecasts a $6.35 billion revenue over ten years. Furthermore, Resources for the Future project minimal consumer costs. Learn more about the MERP and the Inflation Reduction Act here.
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