Texas Attorney General Ken Paxton is leading 22 other attorneys general in suing the Environmental Protection Agency (EPA) over a new rule that would fine the oil and natural gas sector for methane emissions that exceed a certain level. The rule, established in President Biden’s Inflation Reduction Act, is alleged to be “arbitrary, capricious, and an abuse of discretion” by the GOP states. The complaint asserts that the new rule is “unlawful” because “the final rule exceeds the agency’s statutory authority.”
Steve Milloy, former Trump administration EPA transition adviser and senior fellow at the Energy and Environmental Legal Institute, stated that it is unclear how the EPA’s rule circumvents Congress. He pointed out that the IRA clearly sets a threshold for methane emissions at 25,000 metric tons, and noted that methane is an “irrelevant greenhouse gas.”
Milloy opposes the new fee on the oil and gas sector, calling it “pointless” and saying it will make oil and natural gas more expensive. He also suggested that the move to sue in the final days of the Biden administration is to start the process for the plaintiffs to settle with the Trump administration, which has been used by both sides of the green energy debate.
Another forthcoming lawsuit from the Michigan Oil and Gas Association (MOGA) and the American Free Enterprise Chamber of Commerce (AMFree) has also asserted that the new rule circumvents Congress. The lawsuit explains that facilities in the natural gas and petroleum supply chains must report greenhouse gas emissions if they emit 25,000 metric tons or more of carbon-dioxide-equivalent emissions each year.
Michael Buschbacher, a partner at Boyden Gray PLLC, representing MOGA and AmFree in their lawsuit, stated that it will take legislation to reverse the new methane rule, but that their legal filings are aimed at getting the most onerous mandates off the books, so the American energy industry can begin its march back to dominance under the new administration. The EPA declined to comment on the matter, citing the pending nature of the litigation.
