The U.S. Environmental Protection Agency (EPA) has taken a crucial step towards implementing the Methane Emissions Reduction Program (MERP) by proposing a structure for the methane waste charge on large sources of oil and gas methane pollution. This program was passed by Congress last year in the Inflation Reduction Act.

Fred Krupp, President of the Environmental Defense Fund (EDF), commended the EPA's proposal, stating, "EPA's proposal for a fee on oil and gas methane pollution implements the clean air protections for Americans that were part of the Inflation Reduction Act." Krupp emphasized the importance of holding oil and gas companies accountable for their pollution and highlighted the proven solutions available to reduce methane emissions.

Methane, a potent greenhouse gas, is responsible for approximately 30% of current global warming. The oil and gas sector is the largest industrial emitter of methane in the U.S. Grace Smith, an attorney at the EDF, explained that MERP's waste charge would create incentives for operators to take immediate action to reduce their methane pollution. She praised the EPA for delivering a fair, practical, and effective proposal to implement the program in accordance with Congress' directives and in complement with the recently-finalized methane standards.

Under MERP, the waste charge will apply to large polluting facilities in the oil and gas sector with excessive methane pollution. Companies can avoid paying the charge by reducing their emissions in line with industry targets. However, those that choose to continue excessive pollution will be required to pay a fee for each ton of methane released.

In addition to the waste charge, MERP also includes funding to help states, tribes, local communities, operators, and other stakeholders reduce methane pollution from the oil and gas industry. Last month, the EPA announced an initial commitment of $350 million to 14 states for mitigating and monitoring emissions from end-of-life wells.

The EPA's December announcement of new protections to significantly reduce methane emissions from the oil and gas sector aligns with the goals of MERP. The program, designed by Congress to complement and bolster these standards, reinforces the EPA's authority, provides financial and technical assistance, and incentivizes timely implementation and compliance.

The proposal released by the EPA provides detailed information on how the charge will be calculated and when certain exemptions will apply. This step forward in the implementation of MERP demonstrates the EPA's commitment to addressing the pressing issue of methane pollution and its effects on climate change.

In conclusion, the EPA's proposed structure for the methane waste charge under the Methane Emissions Reduction Program is a significant development in the fight against oil and gas methane pollution. By holding companies accountable and providing incentives for emission reductions, this program aims to mitigate the environmental impact of the oil and gas sector. With the support of funding and technical assistance, states, tribes, and local communities can play a crucial role in reducing methane pollution. The EPA's commitment to implementing and enforcing these regulations underscores the importance of addressing methane emissions in the fight against climate change.