The Inflation Reduction Act of 2022 (IRA), which was signed into law by President Biden on August 16, 2022, creates a “Waste Emissions Charge” to be imposed on methane emissions that exceed an applicable waste emissions threshold from an owner or operator of an applicable facility that reports more than 25,000 metric tons of carbon dioxide equivalent (CO2e) of greenhouse gases per year.
The charge will be based on the number of metric tons of methane emissions reported pursuant to subpart W of part 98 of title 40, Code of Federal Regulations, for the applicable facility that exceeds the applicable annual waste emissions threshold listed in Title VI, Subtitle A, Section 30113, subsection (f) of the Act during the previous reporting period in accordance with the following schedule:
$900 per metric ton of methane was reported for the calendar year 2024
$1,200 per metric ton of methane was reported for the calendar year 2025
$1,500 per metric ton of methane was reported for the calendar year 2026 and each year thereafter
For Petroleum and Natural Gas Production facilities, the annual waste emissions threshold is defined as 0.20 percent of the natural gas sent for sale from such facility. The threshold is 0.05 percent for nonproduction systems.