1.Introduction
The Waste Emissions Charge (WEC) for methane (CH4) was codified in federal law through the Inflation Reduction Act (IRA), which was signed into law in August 2022. The IRA amended the Clean Air Act to include the WEC. This provision represented a significant shift in federal climate policy—establishing, for the first time, a charge on excess CH4 emissions from petroleum and natural gas systems. As of mid-2025, recent regulatory developments have changed the path forward for enforcement of the WEC, but the legal requirement remains in place.
In this newsletter, we outline the current status of the WEC, recent actions affecting enforcement, and the implications for companies across the oil and gas value chain.
2. WEC Applicability – A Quick Summary
The methane WEC is authorized by Section 60113(c) of the Inflation Reduction Act (IRA) and applies to facilities that:
Report 25,000 metric tons or more of CO₂e per year under the Greenhouse Gas Reporting Program (40 CFR Part 98, Subpart W), and exceed defined CH4 intensity thresholds based on the facility type.
The regulations implementing the WEC were issued by the EPA in 2024 and published in the Code of Federal Regulations at 40 CFR Part 99 – Waste Emissions Charge. These rules set the charge to begin at $900 per metric ton of excess methane in 2024, rising to $1,200 in 2025 and $1,500 in 2026 and beyond.
3. Congressional Actions to Stop Enforcement of WEC
In March 2025, Congress passed a joint resolution under the Congressional Review Act (CRA) to disapprove the EPA’s 2024 rule at 40 CFR Part 99, repealing the rule meant to implement the requirements for the amended Clean Air Act. The CRA is a legislative mechanism that allows Congress to overturn recently issued federal regulations through a majority vote in both chambers, with the President’s signature. Once a rule is repealed under the CRA, the issuing agency is prohibited from reissuing the rule in substantially the same form without explicit authorization from Congress.
In addition to the CRA repeal that nullified the 40 CFR 99 rule, a provision in the U.S. House Energy and Commerce Committee’s 2025 reconciliation package proposes to pause the implementation of the WEC for 10 years. This would delay any charge collection until after 2034. As of May 2025, the pause has not been officially approved or made into law.
This action on the WEC does not affect regulation of CH4 under NSPS OOOOa, NSPS OOOOb and EG OOOOc.
4. U.S. Environmental Protection Agency Actions
In a Federal Register notice dated May 19, 2025, the EPA revoked the Waste Emissions Charge (WEC) rule for Petroleum and Natural Gas Systems, removing all provisions from 40 CFR Part 99. This followed a Congressional Review Act resolution signed by the President, disapproving the original WEC rule issued in November 2024. Citing a “good cause” exemption, EPA finalized the rule without public comment. As a result, RY2024 and future methane emissions filings and fees are no longer required for affected onshore oil and gas sectors. Legal challenges must be filed by July 18, 2025.
5. Statutory Considerations – The WEC Still Exists in Federal Law
Despite the repeal of 40 CFR 99, the underlying law that mandates the WEC remains intact. The Inflation Reduction Act still requires the EPA to impose and collect a charge on methane emissions, as defined by statute. The statutory obligation under IRA §60113(c) has not been removed or amended.
This places the EPA in a challenging situation: it is still legally required to implement the WEC, but currently lacks an enforceable regulation to do so, unless future congressional action or a new rule resolves the impasse.
6. Implications for Industry
Operators of oil and gas facilities should note the following:
- No CH4 waste emissions charge is currently enforceable, due to the repeal of 40 CFR Part 99.
- The WEC remains part of federal law, and a future administration could reinitiate enforcement through new rulemaking, subject to CRA constraints.
- Legislation to pause the charge is not yet finalized, so the timeline remains uncertain.
- Facilities should continue to monitor CH4 emissions reporting obligations and stay informed on future regulatory or legislative changes that could reactivate the charge.
7. Summary and Conclusions
While the EPA’s implementing rule for the methane WEC (40 CFR Part 99) has been repealed, the legal obligation to collect the charge under the Inflation Reduction Act remains on the books. Congress is expected to implement a 10-year pause on the program, but that provision has not yet been enacted.
For now, enforcement of the charge is suspended, but the underlying law remains in effect. With the implementing rule repealed, EPA currently has no mechanism to determine the fee or collect the Waste Emissions Charge from applicable companies. This creates a dynamic compliance landscape for both operators and regulators—one that may continue to evolve in the years ahead.
Cimarron will continue to monitor federal and state actions related to CH4 regulation and provide updates and technical guidance to support compliance and emissions reduction efforts across the oil and gas industry.
Cimarron – Who We Are
With decades of operating history and innovation across our trusted brands, Cimarron provides technology-driven emissions management solutions for the global energy system. Our leading-edge products, services, and real-time monitoring systems reduce emissions, optimize operations, ensure regulatory compliance, and drive sustainability progress for our customers operating in oil & natural gas production, energy storage & distribution, renewables & biogas, coal mine methane, and certain industrial end markets.
Cimarron boasts a collection of well-established technologies which have been assembled and innovated from trusted industry brands. Our vast global experience, spanning tens of thousands of equipment installations, serves as a testament to our ability to achieve success in every project upon which we embark.
Cimarron is headquartered in Houston, Texas with approximately 550 employees serving our global customer base. In addition to being present in all major regions in the U.S., Cimarron operates across more than 45 countries around the world. We support our customers from sales, engineering, manufacturing, and field service locations across the United States, Italy, India, England, and the United Arab Emirates, further supported by our network of international partners.
Please contact us to learn more about our products and services and about all our solutions at sales@cimarron.com or visit our website www.cimarron.com.