Waste Emissions Charge

The Inflation Reduction Act provides new authorities under the Clean Air Act to reduce methane emissions from the oil and gas sector through the creation of the Methane Emissions Reduction Program. As required by Congress, EPA has proposed to impose and collect an annual charge on methane emissions that exceed specified waste emissions thresholds from applicable oil and gas facilities.

The Waste Emissions Charge (WEC) for methane applies to petroleum and natural gas facilities that emit more than 25,000 metric tons of CO₂ equivalent per year as reported under Subpart W of the Greenhouse Gas Reporting Program, that exceed statutorily specified waste emissions thresholds set by Congress, and that are not otherwise exempt from the charge. The WEC starts at $900 per metric ton for 2024 reported methane emissions, increasing to $1,200 per metric ton for 2025 emissions, and $1,500 per metric ton for emissions years 2026 and later. The proposal would implement calculation procedures, flexibilities, and exemptions related to the WEC.

The WEC complements other efforts to measure and reduce emissions from the U.S. oil and gas sector:

• EPA and DOE are partnering to provide over $1 billion in financial and technical assistance to help facilitate the transition to a low-emitting oil and gas sector.
• Revisions to Subpart W of the Greenhouse Gas Reporting Program to ensure reporting is based on empirical data and accurately reflects the total methane emissions (and waste emissions) from applicable facilities.
• New Source Performance Standards and Emissions Guidelines (NSPS/EG) for the oil and gas industry.

The proposed rule for the WEC has been published in the Federal Register:

• Federal Register Notice: Waste Emissions Charge for Petroleum and Natural Gas Systems
  • Federal Register Notice: Extension of Comment Period

Supporting Documents

• Key Things to Know About EPA's Proposed Waste Emissions Charge Rule (Overview Fact Sheet) (pdf) (193.82 KB)
• Waste Emissions Charge Proposed Rule (pdf) (1.13 MB)
• Regulatory Impact Analysis (pdf) (3.69 MB)
• Examples of Charge Calculations Under the Proposed Waste Emissions Charge (Memo) (pdf) (287.54 KB)
• Examples of Charge Calculations Under the Proposed Waste Emissions Charge (Supporting Data and Calculations) (xlsx) (37.75 KB)
• Steps for Determining Waste Emissions Charge Applicability and Obligation (Graphic) (pdf) (884.04 KB)

Events

Upcoming Events

Stay tuned for information about future events.

Past Events

Date	Topic	Audience	Event Type	Title
January 25, 2024 February 20, 2024 March 5, 2024	Waste Emissions Charge	All	Webinar	Technical Outreach Webinar on Proposed Regulation to Implement the Waste Emissions Charge for Petroleum and Natural Gas Systems Video Recording (watch on YouTube) WEC Proposed Rule Technical Webinar Slide Deck (pdf) (1.66 MB)
February 12, 2024	Waste Emissions Charge	All	Virtual Public Hearing	Virtual Public Hearing on Proposed Regulation to Implement the Waste Emissions Charge for Petroleum and Natural Gas Systems Video Recording (watch on YouTube) Transcript for Virtual Public Hearing (pdf) (852.79 KB)