Methane Emissions ‘Tax’ Draws Scrutiny on EPA’s Collection Role

Public Policy & Regulation attorney Elizabeth Craddock spoke with Bloomberg Tax about the GOP's efforts to repeal a charge on methane emissions from facilities in the oil and gas industry. The charge, imposed by the tax-and-climate law, requires facilities to report greenhouse gas emissions to the U.S. Environmental Protection Agency's (EPA) Greenhouse Gas Emissions Reporting Program. While some lawmakers have said they’re concerned about EPA’s ability collect the charge — which some lawmakers call a tax — Ms. Craddock said the program calls it a charge or fee, which the EPA can carry out.

“The fee, or the charge, is more like a carrot for wanting companies to do good behavior to drive their emissions down, versus a tax,” she said. “Some people think taxes are penalties. The fee is meant to be more of an incentive.”

Ms. Craddock also explained that the program is a softer approach than a carbon tax, an idea that’s also been backed by the Biden Administration. Part of the issue depends on perspective, she continued, adding that affected companies may not view the charge as a “carrot.”

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