Multiple lawsuits are challenging the Environmental Protection Agency (EPA) over a new rule targeting methane emissions from the oil and natural gas industry. Texas Attorney General Ken Paxton leads a coalition of 22 states arguing the rule, established under President Biden's Inflation Reduction Act, is an overreach of the EPA's authority. The states claim the rule is “arbitrary, capricious, and an abuse of discretion,” exceeding the agency’s statutory powers.
A separate lawsuit from the Michigan Oil and Gas Association (MOGA) and the American Free Enterprise Chamber of Commerce (AMFree) also contends the rule bypasses Congressional authority, providing specific details to support their claim. The lawsuit highlights the rule's requirement for facilities in the natural gas and petroleum supply chains to report greenhouse gas emissions exceeding a certain threshold, calculated using global warming potential metrics.
Steve Milloy, a former EPA transition advisor during the Trump administration, questions how the EPA’s rule circumvents Congress, despite the Inflation Reduction Act specifying a methane emissions threshold and tax rate. While critical of the new fee, labeling methane an “irrelevant greenhouse gas” and the tax “pointless,” he acknowledges the legal complexities of the situation.
Milloy suggests the timing of the lawsuits, filed near the end of the Biden administration, may be a strategic move to facilitate settlements with the incoming Trump administration. He notes this tactic has been used by both sides of the environmental debate, although the Trump administration previously aimed to curb such “sue and settle” practices.
Michael Buschbacher, legal counsel for MOGA and AmFree, concurs that legislative action is necessary to overturn the methane rule. He emphasizes the lawsuits aim to dismantle the most burdensome regulations, paving the way for the American energy industry's resurgence under the new administration. Buschbacher acknowledges the Biden-era regulations won’t disappear immediately and anticipates a lengthy legislative process to address the situation.
The EPA declined to comment on the pending litigation. The legal battles highlight the ongoing debate over environmental regulations and their impact on the energy industry, setting the stage for potential policy shifts under the new administration.
