EPA's New Rule Targets Methane Emissions, Introduces Waste Emissions Charge
The Environmental Protection Agency (EPA) has proposed a new rule, the Waste Emissions Charge (WEC), targeting methane emissions from petroleum and natural gas facilities. The Proposed Rule, announced on January 12, 2024, aims to impose an annual charge on emissions exceeding specified thresholds, starting from 2024.
Facilities with multiple owners or operators must now consider who will be the 'WEC Obligated Party', responsible for paying the methane fee. The EPA suggests selecting one party for this role, with the fee set at $900 per metric ton of methane above applicable thresholds for 2024. Parties should review existing contracts to determine if the fee is already covered.
The EPA is also proposing an approach for netting emissions across different facilities owned by the same operator. This allows for a more accurate calculation of net emissions and helps determine if a WEC is owed. The WEC Obligated Party must submit a WEC filing by March 31, 2025, for the 2024 reporting year.
The EPA's Proposed Rule is a significant step towards reducing methane emissions. It affects petroleum and natural gas facilities emitting more than 25,000 metric tons of CO2 equivalent per year, with methane emissions exceeding specified thresholds. Parties involved should carefully consider their roles and responsibilities under the new rule.
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