The Oklahoman

Methane fee clears US House committee

Some warn it will raise cost of heating homes

- Chris Casteel The Oklahoman USA TODAY NETWORK

A U.S. House committee has approved a new fee on methane emissions, despite warnings from the energy industry and Republican lawmakers that the move would raise costs for heating homes and a variety of other activities.

Democrats argued that the fee would reduce emissions of a potent greenhouse gas at a time when weather disasters are claiming American lives and costing billions of dollars in damage.

The methane fee is part of a massive budget package refined by House

The methane fee would be levied on “pollution from the oil and gas industry above specific intensity thresholds,” according to the committee.

committees this week. The Democratic-controlled House is expected to consider the $3.5 trillion package in the next few weeks.

The House Energy and Commerce Committee spent three days working on various aspects of the overall package, including sections on climate change and health care. The panel completed its work Wednesday.

The climate change portion includes a $150 billion Clean Electricit­y Performanc­e Program to push utility companies toward usage of renewables.

Proposed fee designed to clean up methane leaks

The methane fee would be levied on “pollution from the oil and gas industry above specific intensity thresholds,” according to the committee, and “recognizes the cleanest performers, holds individual companies responsibl­e for their own leaks and excess methane pollution, drives innovation in the sector, and supports the creation of goodpaying jobs.”

Rep. Kathy Castor, a Florida Democrat on the committee, said methane “is a major contributo­r to the climate crisis because methane escapes at every point of oil and gas production. It escapes when it’s extracted, it escapes when it’s transporte­d, it escapes when it’s refined, and these leaks undermine any climate benefit that fracked natural gas has when compared to coal.”

She said the fee would “incentiviz­e companies to find and fix leaks and stop intentiona­l emissions like venting and flaring. It is a very important tool to solve the climate crisis, improve air quality and protect the health of communitie­s across the country.”

Republican Rep. Cathy McMorris Rodgers, of Washington, tried unsuccessf­ully to strip the fee from the bill.

“Unfortunat­ely, much of this proposal is an assault on reliable and affordable energy to appease radical environmen­talists on the far left,” Rodgers said.

“The natural gas tax will impact our entire economy by making it more expensive to heat homes, cook, eat (and) manufactur­e thousands of products from PPE to medicines to solar panels.

This new natural gas tax is a punitive tax designed to artificially raise the price of natural gas to discourage jobcreatin­g investment­s in fossil fuels and force a radical transforma­tion of American life.”

Energy groups say methane fee would boost consumers’ costs

A coalition of energy and business groups, led by the American Petroleum Institute, said in a letter to legislator­s that reducing methane emissions is a priority of oil and gas producers and that current regulation­s were enough to achieve the goal.

“As a result of technology and efficiency measures, emissions relative to production in five of the seven largest producing basins were down nearly 70% between 2011 and 2019 and are expected to continue to trend downward,” the coalition stated.

The American Gas Associatio­n said the methane tax would increase costs on natural gas bills by approximat­ely 18-34% or $128 to $242 per year for the average American family.

Rep. Jerry McNerney, D-Calif., said the fee is “the best solution to the problem of methane emissions. It targets methane emissions, not its production. It would cause them to be captured and used and should lower the cost of methane to consumers … It’s a false claim that this bill will be eliminatin­g all natural gas production.

“This bill targets leakage. So don’t tell me that the pollution fee raises costs. The technology already exists to detect and repair leaks from energy infrastruc­ture, which not only cuts pollution but also reduces waste.”

After failing to eliminate the methane fee, Republican­s on the committee sought to amend the proposal to ensure cattle operations were not subject to the requiremen­ts. Democrats said the proposal did not apply to agricultur­e and defeated the amendment.

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