We applaud new West Virginia Attorney General J.B. McCuskey, who has joined 22 other states in challenging the Environmental Protection Agency (EPA) on its controversial methane tax rule.
The rule would impose charges on oil and natural gas facilities emitting more than 25,000 metric tons of carbon dioxide per year. Retroactive fees are set to begin at $900 per metric ton for 2024 emissions, increasing to $1,200 in 2025 and $1,500 in 2026 and beyond.
Emerging from the Inflation Reduction Act of 2022, the methane tax rule was initially billed as part of a balanced energy policy. However, its implementation has drawn criticism from natural gas and oil producers and advocates of an all-of-the-above energy strategy.
“The days of Biden’s dangerous and illogical energy policies are done,” McCuskey said. “Common sense will prevail, and we are excited to do everything we can to get the men and women of our gas industry back to work making America the world’s leader in energy production. This challenge will reduce costs to consumers, spur manufacturing and make us more secure.”
The American Petroleum Institute (API) has also voiced concerns, with Dustin Meyer, API’s senior vice president of policy, economics and regulatory affairs, calling the rule misguided.
“API supports smart, effective methane regulations, yet this rule hampers our ability to meet the growing energy needs of American families and businesses and fails to advance meaningful emissions reduction,” Meyer said. “This is the wrong approach on methane policymaking, and we look forward to working with the incoming administration and new Congress to get this right.”
West Virginia’s senior U.S. senator, Shelley Moore Capito, chairwoman of the Senate Environment and Public Works Committee, has also taken a strong stand against the methane tax, calling for its repeal.
“The Biden administration is continuing its anti-consumer agenda by implementing the natural gas tax enacted by Democrats in the Inflation Reduction Act,” Capito said in November 2024. “This natural gas tax will inflate prices for consumers and reduce domestic energy production, which will empower our adversaries abroad. American voters firmly have said ‘enough’ and rejected Democrats’ destructive energy policies last week. I look forward to working with my colleagues and President Trump to repeal this misguided tax early in the next Congress.”
We believe Congress must revisit the methane tax and seek a more measured approach to reducing harmful methane emissions without stifling economic development.
McCuskey has taken the proper steps, as has Capito. We hope their voices continue to be heard and heeded.