PolicyBrief
H.J.RES. 35
119th CongressMar 14th 2025
Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Environmental Protection Agency relating to "Waste Emissions Charge for Petroleum and Natural Gas Systems: Procedures for Facilitating Compliance, Including Netting and Exemptions".
SIGNED

This bill seeks to nullify the EPA’s rule regarding waste emissions charges for petroleum and natural gas systems.

August Pfluger
R

August Pfluger

Representative

TX-11

PartyTotal VotesYesNoDid Not Vote
Democrat
26062504
Republican
27126614
Independent
2020
LEGISLATION

Congress Moves to Block EPA’s New Methane Waste Fees for Oil and Gas Producers

This joint resolution is a direct strike against a specific Environmental Protection Agency (EPA) rule—the "Waste Emissions Charge for Petroleum and Natural Gas Systems." Under the Congressional Review Act, this bill declares that the EPA’s rule, which was published at 89 Federal Register 91094, will have no legal force or effect. Essentially, it’s an "undo" button for a regulation designed to fine oil and gas companies when they leak or vent excessive amounts of methane and other greenhouse gases into the atmosphere.

The Price of Air

The rule being targeted was a key piece of the puzzle for reducing industrial waste. It established a sliding scale of charges for methane emissions that exceed specific thresholds, starting at $900 per metric ton in 2024 and rising to $1,500 by 2026. For a worker in the Permian Basin or a resident living near a processing plant, this rule was meant to incentivize companies to tighten up their pipes and stop "flaring" or venting gas that could otherwise be sold. By blocking this rule, the bill removes those financial penalties, meaning companies won't face these specific federal charges for excess waste, regardless of how much gas escapes during production.

Netting and Exemptions Scrapped

It wasn't just about the fines; the EPA rule also laid out the "rules of the road" for how companies could lower their bills. It included provisions for "netting," which allowed a company to balance out a high-emitting facility with a cleaner one to lower their overall charge, and provided exemptions for facilities that were already complying with other strict state or federal standards. By tossing the whole rule, this bill also removes these compliance frameworks. While this saves industry players from the administrative headache and the direct cost of the fees, it leaves a vacuum in how waste emissions are measured and penalized at the federal level.

The Neighborhood Impact

For the average person, the impact of this bill hits closest to home if you live in an energy-producing region. Without the EPA’s waste charge, there is less immediate financial pressure on operators to invest in leak detection and repair technology. This could mean that the air quality improvements expected from reduced methane venting may not materialize as quickly. While the bill prevents potential energy cost hikes that might have been passed down to consumers from these industry fees, it shifts the "cost" back onto the environment and public health in the form of continued emissions. It’s a classic trade-off: lower operational costs for energy companies today versus the long-term health and climate costs for the communities surrounding them.