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Texas Attorney General Ken Paxton leads 22 other attorneys general in suing the Environmental Protection Agency (EPA) on a new rule that would fine the oil and natural gas industry for methane emissions that exceed a certain level.
Republican states allege the new rule, which was established in President Biden’s Inflation Reduction Act, is “arbitrary, capricious and (and) an abuse of discretion.” The complaint against the EPA has few details, other than to claim that the new rule is “unlawful” because “the final rule exceeds the agency’s statutory authority.”
While the Supreme Court has articulated very limited authority over how Congress can delegate its legislative power, Steve Milloy, The former EPA transition adviser to the Trump administration and a senior fellow at the Energy and Environmental Law Institute said it is not clear to him how the EPA rule circumvents Congress.
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“The IRA clearly says that the EPA must collect a tax and prescribes the rate of the tax,” Milloy told Fox News Digital, pointing to the “Waste Emissions Burden” section of the IRA which sets a threshold for methane emissions at 25,000 metric tons. “I’ll be interested to see how the states back up their claims.”
However, Milloy is against the new oil and gas sector tariff, noting that methane is an “irrelevant greenhouse gas”.
“The tax makes no sense and will accomplish nothing other than making oil and natural gas more expensive,” he said.
Milloy suggested that the move to sue in the final days of the Biden administration is to start the process for the plaintiffs to settle with the Trump administration. According to him, this is a tactic that has been used by both sides of the green energy debate. He added that in the past, the Trump administration has tried to get away from “sue and settle” tactics.
“Congress “The law needs to be changed,” Milloy said. “Because, let’s say they sue and they settle, well, the next administration can come back and undo it.”
Meanwhile, another pending lawsuit by the Michigan Oil and Gas Association (MOGA) and the American Free Enterprise Chamber of Commerce (AMFree) has also claimed that the new rule circumvents Congress, but has provided details explaining why what
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“In Subpart W, the facilities of the natural gas and oil supply chains must report greenhouse gas emissions if they emit 25,000 metric tons or more of carbon dioxide equivalent emissions each year,” the second lawsuit explains. “For gases other than carbon dioxide, emissions “equivalent ” are determined by multiplying emissions by the gas’ global warming potential’ (‘GWP’).”
Michael Buschbacher, a partner at Boyden Gray PLLC, which represents MOGA and AmFree in its lawsuit, agreed with Milloy that legislation will be needed to reverse the new methane rule, but said the goal of his legal filings is “getting the most onerous.” force off the books, so the US energy industry can begin its march toward dominance under the new administration.”
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“Biden-era environmental regulations will not magically disappear at 12:01 a.m. Monday. It will take time and legislation to undo the mess he has left behind,” Buschbacher said.
The EPA declined to comment on the matter, citing the pending nature of the litigation.