The Waste Emissions Charge is a federal fee on excess methane pollution from oil and gas facilities, created by the Inflation Reduction Act of 2022 and codified in Section 136 of the Clean Air Act. It is not currently being collected. The One Big Beautiful Bill Act of 2025 pushed the first assessment out to methane emissions reported for calendar year 2034, and in May 2025 EPA removed the implementing regulation from the Code of Federal Regulations.1US EPA. Methane Emissions Reduction Program and GHGRP Subpart W Facilities in covered segments still have to report their methane emissions each year, but no one will owe the charge itself for reporting years 2024 through 2033.
Current Status of the Charge
The charge was originally scheduled to first apply to methane reported for calendar year 2024, at $900 per metric ton of excess methane, rising to $1,200 for 2025 emissions and $1,500 for 2026 and beyond.2Office of the Law Revision Counsel. 42 U.S. Code 7436 – Methane Emissions and Waste Reduction Incentives That timeline is gone. Under the OBBA amendments, the first year of assessment is now calendar year 2034 emissions, at $1,500 per metric ton. EPA followed up on May 12, 2025 by finalizing a rule that removed the Waste Emissions Charge regulation from the CFR.1US EPA. Methane Emissions Reduction Program and GHGRP Subpart W
The underlying statutory framework in Clean Air Act Section 136 remains in the U.S. Code. That matters because the charge is dormant, not repealed. Future legislation could accelerate the schedule again or push it further out, and any facility that would fall within the covered segments should keep watching for changes rather than treat the obligation as gone.
Which Facilities the Charge Would Apply To
When the charge takes effect for 2034 emissions, it will apply to facilities in nine petroleum and natural gas industry segments that report more than 25,000 metric tons of carbon dioxide equivalent per year through Subpart W of the Greenhouse Gas Reporting Program.3US EPA. Fact Sheet: Final Rule – Waste Emissions Charge for Petroleum and Natural Gas Systems The covered segments are:
- Onshore and offshore petroleum and natural gas production
- Onshore natural gas processing
- Onshore petroleum and natural gas gathering and boosting
- Onshore natural gas transmission compression and transmission pipelines
- Underground natural gas storage and LNG storage
- LNG import and export equipment
The 25,000-ton threshold is measured in total greenhouse gas emissions expressed as carbon dioxide equivalent, not methane alone.4US EPA. EPA Finalizes Rule to Reduce Wasteful Methane Emissions and Drive Innovation Facilities outside these oil and gas segments are not subject to the charge no matter how much they emit.
How the Charge Is Calculated
The charge is not a tax on every ton of methane a facility emits. It applies only to the portion of methane emissions that exceeds a waste emissions threshold, which is set as a methane intensity tied to the volume of gas or oil the facility sends to sale. The thresholds vary by facility type:
- Production facilities: 0.20% of natural gas sent to sale, or 10 metric tons of methane per million barrels of oil sent to sale if the facility sends no natural gas to sale
- Nonproduction facilities (gathering, boosting, processing, LNG): 0.05% of natural gas sent to sale from or through the facility
- Transmission facilities: 0.11% of natural gas sent to sale from or through the facility
A facility that keeps its methane leakage below these percentages owes nothing. Only the excess is billed, at the applicable per-ton rate for that reporting year. Facilities under common ownership can also net emissions across multiple sites, so a company with tight operations at most of its sites may reduce or eliminate the total charge across its portfolio.5Federal Register. Waste Emissions Charge for Petroleum and Natural Gas Systems
Exemptions That Can Eliminate the Charge
The statute provides three exemptions that can zero out the charge for qualifying facilities.
Compliance With EPA Methane Standards
A facility that is subject to and in compliance with EPA’s methane emissions standards under Sections 111(b) and 111(d) of the Clean Air Act can be exempt from the charge. The exemption operates at the facility level, so it covers all of the facility’s methane emissions, including from sources not directly regulated by those standards.5Federal Register. Waste Emissions Charge for Petroleum and Natural Gas Systems
Unreasonable Permitting Delays
If excess emissions result from unreasonable delays in environmental permitting of gathering or transmission infrastructure needed to handle increased gas volumes from mitigation efforts, EPA can exempt those emissions.2Office of the Law Revision Counsel. 42 U.S. Code 7436 – Methane Emissions and Waste Reduction Incentives
Plugged and Shut-In Wells
Permanently shut-in and plugged wells are exempt under a separate provision in EPA’s final rule.
What Covered Facilities Still Have to Do Now
The delay applies to the charge, not to reporting. Facilities in the covered oil and gas segments must still submit annual methane data through Subpart W of the Greenhouse Gas Reporting Program, and EPA strengthened those reporting requirements in 2024 to improve the accuracy of methane figures.1US EPA. Methane Emissions Reduction Program and GHGRP Subpart W Subpart W data is what will drive the charge calculation once assessments begin, so the reporting record built during the dormant period will carry forward.
Deadlines can move. For the 2025 reporting year, EPA extended the Subpart W deadline to October 30, 2026.6Federal Register. Extending the Reporting Deadline Under the Greenhouse Gas Reporting Rule for 2025 Check the current year’s deadline with EPA rather than assuming a fixed date.
A Note on Title V Permit Fees
The Waste Emissions Charge is often confused with Title V operating permit fees, which are a separate and ongoing obligation. Title V fees are paid annually by major sources of air pollution across all industries to fund state and local permitting programs, and they have been in place since the early 1990s.7US EPA. Permit Fees The Waste Emissions Charge delay has no effect on Title V fees; a facility that owes Title V fees today still owes them.