Texas Attorney General Ken Paxton, 22 other states sue to halt planned federal methane fines

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Texas Attorney General Ken Paxton, joined by a 22-state coalition, filed a lawsuit Thursday against the U.S. Environmental Protection Agency to block the implementation of a methane emissions tax created under the Inflation Reduction Act.

The lawsuit, filed in the final days of President Biden’s administration, argues that the EPA rule — which imposes a monetary penalty on certain oil and gas facilities that exceed methane emission limits — is unlawful and exceeds the federal agency’s authority.

“Over the past four years I have opposed the Biden Administration more than 100 times to stop its radical attempts to undermine the law. I am positive this last-minute effort to harm the energy industry will be halted as well,” Paxton said in a press release. “In only four days, when President-elect Trump resumes office, America will no longer be burdened by a runaway bureaucracy intent on destroying our liberties.”

The methane tax, also known as the Waste Emissions Charge, targets so-called super emitters, operators that emit high volumes of methane. The penalty starts at $900 per metric ton for methane emissions reported in 2024 and jumps to $1,500 per metric ton of methane by 2026.

Most of the methane emissions in the U.S. come from the energy sector — particularly facilities in Texas, the nation’s largest oil and gas producing state.

Methane, a primary component of natural gas, is a potent greenhouse gas that contributes to climate change by trapping heat in the atmosphere. The EPA reports that methane accounts for about 16% of global emissions. Because methane lasts in the atmosphere for a few decades rather than a few centuries, reducing emissions would help moderate global temperatures more quickly.

Critics of the methane tax have expressed concerns about the complexity of reporting methane emissions and the disproportionate impact they believe it has on smaller operators who might release methane.

Other states in the lawsuit are all led by Republicans, including Oklahoma, Arkansas, North Dakota, West Virginia, Alabama, Florida, and Georgia, to name a few.

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Reversing the rule would require extensive regulatory review, public input, and potentially congressional action — a process that could take years.