CIPA Joins IPAA in Strong Federal Push Against Methane Emissions Charge

Last week, the California Independent Petroleum Association (CIPA) joined with the Independent Petroleum Association of America (IPAA) and other allied trade organizations in submitting a coalition letter to congressional leadership calling for the permanent repeal of the Methane Emissions Reduction Program (MERP) and its cornerstone provision, the Waste Emissions Charge (WEC), also known as the "methane tax."

The letter, addressed to Senate Majority Leader John Thune and House Speaker Mike Johnson, applauded Congress for its recent passage of H.J. Res 35, a resolution disapproving the EPA’s rulemaking on the WEC. The resolution, now signed into law by President Trump, halts the EPA’s ability to collect the methane tax under current rules.

However, as outlined in the letter, this legislative action is only a first step. The statutory authority to impose the methane tax remains embedded in the Inflation Reduction Act (IRA), and Congress must now act to fully repeal the MERP and its harmful framework.

The MERP was conceived without any congressional hearings or expert testimony and lacks the scientific and stakeholder rigor typically required of federal environmental regulation. If allowed to proceed, the program would impose new layers of costly and duplicative regulation on methane emissions, already regulated under the Clean Air Act.

The MERP is particularly damaging to small and midsize oil and gas producers, like those represented by CIPA, by layering on new compliance burdens, legal liabilities, and costs related to environmental consultants and regulatory filings. In many cases, these costs could lead to reduced operations or the premature shutting-in of wells, threatening jobs and energy supply across the state and nation.

Moreover, this flawed program was designed without transparency or guidance, creating major compliance uncertainty that could chill investment in American energy projects.

CIPA’s coordination with IPAA on this letter reflects our national strategy to protect independent producers through federal advocacy. Our message to Congress is clear: repeal the MERP and restore regulatory certainty to an industry already making meaningful emissions reductions without punitive mandates.

We commend Congress for taking the first step, and we now urge lawmakers to finish the job in the upcoming budget reconciliation process by repealing the MERP statutes entirely.

CIPA will continue to monitor developments in Washington and will update members on new opportunities to engage in this critical advocacy effort.