Ceres disappointed by repeal of the Methane Emissions Reduction Program’s pollution fee

Ceres issued the following statement in response to the vote by the U.S. Congress yesterday to aimed at halting the implementation of the methane polluter fee, a measure included in the Methane Emissions Reduction Program designed to cut methane waste and pollution from oil and gas operations.  

“Yesterday’s vote is a setback in moving the U.S. towards a cleaner economy,” said Andrew Logan, senior director of oil and gas, Ceres. “Reducing methane is the cheapest way to slow the current rate of global warming, and necessary for the oil and gas industry to maintain access to international markets. The Methane Emissions Reduction Program was designed as a commonsense approach to encourage oil and gas producers to employ cleaner methods that deliver more natural gas to consumers and less to the atmosphere. The repeal of the program will both adversely impact low-income communities and communities of color, and the ability of U.S. oil and gas companies to compete overseas.” 

The Methane Emissions Reduction Program was established by the 2022 Inflation Reduction Act to cut methane waste and pollution from oil and gas operations. The fee was designed to ensure oil and gas operators comply with federal methane standards by only assessing a fee on those producers who emit more than 25,000 metric tons of carbon dioxide equivalent per year.  

Methane pollution has more than 80 times the warming power of carbon dioxide over the first 20 years after it reaches the atmosphere and is responsible for more than a quarter of the global warming the planet is now experiencing. Oil and gas companies emit roughly 16 million metric tons of methane every year through venting, flaring and leaks – the equivalent of about $2 billion worth of natural gas. It is estimated that energy producers are losing approximately $1 billion in lost commercial value due to methane pollution.  

When accounting for harm to the economy and human well-being, the annual cost rises to $10 billion. More than 10 million people in the U.S., including 645,400 children under the age of five, live within a half mile of active oil and gas production, breathing air polluted with methane and other contaminants. 

About Ceres 

Ceres is a nonprofit advocacy organization working to accelerate the transition to a cleaner, more just, and sustainable world. United under a shared vision, our powerful networks of investors and companies are proving sustainability is the bottom line—changing markets and sectors from the inside out. For more information, visit ceres.org.