A methane emissions fee is being challenged by 23 state attorneys general who have filed a lawsuit against the EPA.

A group of 23 attorneys general, including Texas Attorney General Ken Paxton, are challenging the Environmental Protection Agency (EPA) over a new rule that imposes fines on the oil and natural gas sector for exceeding a certain level of methane emissions.

The GOP states are claiming that the new rule, which was included in President Biden's Inflation Reduction Act, is "arbitrary, capricious, and an abuse of discretion." The complaint against the EPA is brief, stating only that the new rule is "unlawful" because "the final rule exceeds the agency's statutory authority."

The Supreme Court has limited the ways in which Congress can delegate its legislative power, but Steve Milloy, a former Trump administration EPA transition adviser and senior fellow at the Energy and Environmental Legal Institute, believes it is unclear how the EPA's rule avoids Congress' authority.

"According to Milloy, the IRA mandates that the EPA impose a tax and specifies the tax rate, as outlined in the "Waste Emissions Charge" section which establishes a 25,000 metric ton threshold for methane emissions. Milloy expressed interest in observing how the states would back up their claims."

Milloy opposes the new fee on the oil and gas industry, arguing that methane is not a significant contributor to global warming.

He stated that the tax is futile and will achieve nothing except to increase the cost of oil and natural gas.

Milloy proposed that the move to sue in the last days of the Biden administration is a strategy to initiate settlement talks with the Trump administration for the benefit of the plaintiffs. He stated that this approach has been employed by both sides of the green energy debate. Furthermore, he pointed out that the Trump administration had previously attempted to eliminate "sue and settle" tactics.

"If Congress changes the law, it can be undone by the next administration if they sue and settle, Milloy said."

The Michigan Oil and Gas Association (MOGA) and the American Free Enterprise Chamber of Commerce (AMFree) have filed another lawsuit, claiming that the new rule violates Congress's authority.

"According to the second lawsuit, facilities in the natural gas and petroleum supply chains are required to report greenhouse gas emissions if they emit 25,000 metric tons or more of carbon-dioxide-equivalent emissions each year. For gases other than carbon dioxide, 'equivalent' emissions are calculated by multiplying emissions by the gas's 'global warming potential' ('GWP')."

Boyden Gray PLLC, which is representing MOGA and AmFree in their lawsuit, has agreed with Milloy that legislation is necessary to reverse the new methane rule. However, the purpose of their legal filings is to remove the most burdensome requirements, allowing the American energy industry to regain its strength under the new administration.

According to Buschbacher, the Biden-era environmental regulations will not disappear at 12:01 on Monday. Instead, it will take time and legislation to undo the damage left behind.

The EPA refused to provide a comment on the matter due to the ongoing legal proceedings.