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Committee debates repeal of EPA methane polluter fee; Democrats say fee captures wasted gas, Republicans call it a cost on consumers
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Summary
Members of the House Rules Committee heard competing testimony on H.J.Res.35, a Congressional Review Act resolution to overturn the Environmental Protection Agency’s methane polluter fee. Democrats said the fee corrects market failure and funds mitigation technology; Republicans said the fee will raise energy prices and hurt small producers.
The Rules Committee also considered the policy case for H.J.Res.35, a Congressional Review Act resolution to overturn the EPA’s methane polluter fee. The fee is the core pricing mechanism in the methane emissions reduction program enacted by the Inflation Reduction Act; under the rule operators pay a per‑ton fee on excess methane emissions unless they adopt mitigation measures.
Representative Paul Tonko, testifying for Democrats, said the methane fee corrects a market failure — wasted methane is currently cheaper to vent or flare than to capture — and that the fee can be avoided if operators prevent leaks and waste. Tonko told the committee that waste amounts to billions of dollars each year and that a mitigation industry is expanding to capture that lost product while creating jobs.
Representative Brett Guthrie and other Republican witnesses argued the fee imposes a punitive charge that will be passed through to consumers, reduce U.S. energy production and increase reliance on foreign sources. Guthrie cited analyses (including CBO work referenced in testimony) suggesting compliance costs could be passed through to end users. He also emphasized the effect on small and mid‑size independent producers with limited staff and capital.
Committee action
As part of the Rules package the committee provided for consideration of H.J.Res.35 under a closed rule for floor debate (one hour general debate equally divided; one motion to recommit; points of order waived). The committee did not itself vote to disapprove the EPA rule; it set the terms for House floor consideration.
Implications
Supporters of the methane fee argue it preserves consumer value by preventing waste and reducing emissions; opponents argue it will raise energy costs and reduce domestic output. The House floor will decide whether to sustain or overturn the EPA regulation under the terms provided by the Rules Committee’s report.
