Dems upbeat methane fee stays in Senate bill

WASHINGTON — A Democratic plan to impose a fee on methane emissions from oil and gas wells has cleared a key hurdle, but it faces strong opposition from the oil and gas industry and criticism by centrist Sen. Joe Manchin.

The proposed fee on methane — a pollutant that contributes to global warming — was included in a huge social and environmental policy bill passed by House Democrats last week.

As the bill moves to the Senate, attention again will focus on Manchin, a West Virginia moderate who has already forced fellow Democrats to abandon one of their biggest climate proposals: a clean-electricity program that would boost wind and solar power while phasing out coal- and gas-fired power plants.

Manchin, whose state is a leading producer of coal and natural gas, has said he worries a methane tax could be used to drive energy companies out of business. He said before the House vote that he wants to make sure the fee is structured to incentivize innovation and not just “punish” energy companies “for the sake of punishing” them.

A spokeswoman for Manchin declined to comment after the House vote, but Democrats in the House and Senate said they are confident the fee will remain in the Senate bill, despite a 50-50 split in the chamber that gives every Democrat veto power.

Language approved by the House represents a compromise that would slap a rising fee on excess emissions at oil and gas facilities, reaching $1,500 per ton in 2025, along with $775 million in subsidies for companies that take steps to reduce emissions.

Rep. Frank Pallone, D-N.J., who chairs the House Energy and Commerce Committee, said he and other Democrats have been working with senators on the methane fee, including Manchin, who chairs the Senate Energy and Natural Resources Committee.

While the Senate may make minor revisions over the next few weeks, “nothing major, in my opinion,” will be changed or taken out, Pallone said.