A controversial provision of Democrats’ climate and social spending bill imposing a fee on emissions of methane is expected to survive negotiations in the House after centrists from oil and gas-rich Texas dropped their opposition to the broader legislation.
As recently as Thursday morning, Texas Reps. Henry Cuellar, Vicente Gonzalez, and Filemon Vela had written a letter to House Speaker Nancy Pelosi, obtained by the Washington Examiner, warning the methane fee “unfairly targets oil and gas companies” and would “hurt U.S. competitiveness.” They also said the fee would increase the cost of natural gas used by consumers for electricity and to heat homes.
EPA MOVES TO REGULATE METHANE EMISSIONS FROM OIL AND GAS
But by Thursday evening, Cuellar said he would vote for Democrats’ Build Back Better Act on the House floor despite the methane fee remaining in the legislation because “no bill is perfect.”
Two people with knowledge of the negotiations confirmed to the Washington Examiner that House Democrats, who can afford to lose only three votes if Republicans vote en masse against their climate and social spending bill, have enough support to keep the methane fee intact.
Methane, the main component of natural gas, is less known than carbon, the biggest contributor to climate change. But emissions from methane are driving more than 25% of global warming, mostly caused purposely or accidentally by leaks during the production and transportation of natural gas.
Texas Democrats had already won modifications to the methane fee, which was tweaked in later versions of the legislation to allow a ramp-in period before the fee is imposed and provide a dedicated funding stream to support companies installing methane monitoring equipment.
“We’re confident that the compromise provides a clear path to reduce emissions while giving the industry time to invest in pollution controls to avoid fees altogether,” Collin O’Mara, president and CEO of the National Wildlife Federation, told the Washington Examiner.
Even if it survives the House, it’s unclear if the compromise version can pass the Senate, where Democrats can’t lose any of their members.
Centrist Sen. Joe Manchin of West Virginia, who has helped defeat other provisions targeting fossil fuels, is the biggest question mark, although he has not come out in opposition to the methane fee. He recently told The New York Times “we’re working through issues” on the methane fee.
Manchin, from his perch as chairman of the Energy Committee, repeatedly stresses the need for oil and gas companies to do better in stopping leaks of methane.
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Natural gas industry groups have called on Democrats to withdraw the methane fee, arguing it would be duplicative with new regulations on the pollutant proposed this week by the Environmental Protection Agency.
Proponents, though, say a methane fee passed through law would complement regulations, which face uncertainty because a future Republican administration could undo them.
