3 Steps to Prepare for Methane Fees

The Inflation Reduction Act Dates

• The Senate approved on Sunday, August 7th
• The House approved on Friday, August 12th
• President Biden approved on Tuesday, August 16th

Now what? How do oil and gas companies move forward with the Inflation Reduction Act and its methane fee?

The first step is to know if the methane fee will apply to your facility. Owners and operators will be charged fees for facilities and reporting basins that exceed 25,000 metric tons of CO2e according to the act. However, Natural gas distribution facilities, which report emissions under Subpart W, are not subject to the charge. Altamira can audit your emissions to determine if the methane fee applies.

The second step is to calculate your methane fee if it does apply. Using emissions calculated for GHG reporting, we can calculate fees at your current emission rate. In fact, the Inflation Reduction Act has already shared the annual fee. To clarify, it applies to methane emissions generated in calendar year 2024, 2025, and caps out in 2026. The necessary information is available, so we can get an accurate estimate for your business. Determining methane fees in advance gives you time to plan and prepare. Additional time can be especially helpful to avoid any surprises at the last minute.

The final step is to potentially lower emissions and methane fees. Identifying areas for reductions or calculation refinements is the best way to save money because charges can add up. Frequently, we find inaccurate equipment information and inadequate tracking. Our experts have found many ways to decrease methane emissions.

Lastly, I hope the step-by-step process of preparing for the methane fees in the Inflation Reduction Act helps break it down. Let us know if you have additional questions about your overall facility or would like help with the next steps.

Brett Eaton
Program Manager
Phone: 405.702.1378
Email: brett.eaton@altamira-us.com