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Title page 1

Contents 3

Summary 2

Introduction and Recent Developments 4

U.S. Methane Emissions and Sources 7

Inflation Reduction Act (IRA) Methane Emissions Charge 9

Scope and Applicability 9

Rate of Charge 15

Conditional Exemption 16

Potential Effects of the Methane Charge 17

Estimated Effects from EPA's 2024 Regulatory Analysis 19

Considerations for Policymakers 20

Author Information 21

Disclaimer 21

Tables 3

Table 1. EPA's Analysis of Number of Subpart W Reporting Facilities and Facilities with Emissions Subject to WEC After Applying Thresholds and Netting 11

Table 2. EPA's Estimates of Subpart W Methane Emissions and Methane Emissions Subject to WEC after Applying Thresholds and Netting 14

Table 3. EPA GHG Emissions Inventory Estimates of Methane Emissions from Petroleum and Natural Gas and Systems (2022) 15

Figures 3

Figure 1. Estimated U.S. Total Greenhouse Gas Emissions by Greenhouse Gas and a Breakdown of Methane Emissions, by Source 8

Figure 2. Petroleum and Gas Entities Subject to EPA's GHG Emissions Reporting Program (GHGRP) 10