Climate policy experts say that the double-pronged approach is necessary to shut down methane emissions, particularly because executive regulations could be undone by a future administration.
“It’s important to go after methane from all directions, because it’s been neglected compared to other greenhouse gases, and frankly, we don’t know which of these policy levers will stand up through time,” said Rob Jackson, an earth scientist at Stanford University who has published studies on the climate-warming effects of methane. “Executive actions can be rolled back.”
The proposed fee would apply to the largest oil and gas companies, which emit more than 25,000 tons of greenhouse gases each year. Those companies would pay $900 per ton of leaked methane starting in 2024, ramping up to $1,500 per ton from 2026 through 2030.
Democrats have already lowered those fee levels in an effort to appease Mr. Manchin, according to two people familiar with the private discussions who spoke about them on the condition of anonymity. Staff members crafting the proposal initially set the fee to start at $1,500 per ton of leaked methane, but they lowered it in hopes of winning the senator’s support.