Waste Emissions Charge

In the Inflation Reduction Act (IRA) of 2022, Congress amended the Clean Air Act (CAA) to create CAA section 136, also known as the Methane Emissions Reduction Program. In CAA section 136, Congress directed EPA to collect a Waste Emissions Charge (WEC) on waste emissions of methane from certain oil and gas facilities. EPA has finalized a regulation to facilitate implementation of calculation procedures, flexibilities, and exemptions related to the WEC.
 
The WEC 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 WEC complements other efforts to measure and reduce emissions from the U.S. oil and gas sector:

• New Source Performance Standards and Emissions Guidelines (NSPS/EG) for the oil and gas industry.
• 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.

The final rule for the WEC has been announced and will soon be published in the Federal Register:

• Pre-Publication Version of Final Rule for Waste Emissions Charge for Petroleum and Natural Gas Systems: Procedures for Facilitating Compliance, Including Netting and Exemptions

Supporting Documents

• Regulatory Impact Analysis
• Response to Comments
• Key Things to Know About EPA's Final Waste Emissions Charge Rule (Overview Fact Sheet)
• Steps for Determining Waste Emissions Charge Applicability and Obligation (Graphic)

Events

Upcoming Events

Date / Start Time	Topic	Audience	Event Type	Title / Registration
November 25, 2024, 2:00 p.m. EST	Waste Emissions Charge	All	Virtual Technical Webinar	Technical Outreach Webinar on Final Rule for Waste Emissions Charge Register here.
December 12, 2024, 2:00 p.m. EST	Waste Emissions Charge	All	Virtual Technical Webinar	Technical Outreach Webinar on Final Rule for Waste Emissions Charge Register here.

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)