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Republican states sue EPA over ‘methane fee’ implementation

  • Twenty-Three states, led by Texas, have sued the Environmental Protection Agency over a new rule that creates a methane tax on the U.S. Oil and natural gas industry. The rule is part of the Inflation Reduction Act, which passed in 2022 and was signed into law by President Joe Biden.
  • The coalition argues that the rule exceeds the EPA’s statutory authority, is arbitrary, capricious, an abuse of discretion, and not in accordance with the law. The final rule was published in November 2022 and affects certain segments of the petroleum and natural gas systems industry that report more than 25,000 metric tons of carbon dioxide equivalent .
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