The U.S. Senate climate bill’s fee on oil and gas industry methane emissions will cover less than half the sector’s releases of the powerful greenhouse gas, thanks to concessions made to win over party holdout Joe Manchin, according to a review of the legislation and interviews with lawmakers that negotiated it.
The reduced scope of the fee is among numerous changes made by Senate Democratic leadership to secure a deal on the hard-won Inflation Reduction Act, which is being hailed as the biggest climate package in U.S. history but which pales in comparison to President Joe Biden’s initial vision for legislative action on global warming.
Delaware Senator Tom Carper, who quietly negotiated the parameters of the fee with Manchin after the West Virginia senator opposed the original proposal, said the bill reflected some compromises with Manchin – whose constituency includes coal, oil, and gas interests and whose vote was needed to pass the legislation.
Some environmentalists say such concessions weaken the impact of the fee because it lets many polluting facilities off the hook. Carper said Manchin was worried about the impact of a fee on smaller companies, including those without the right equipment to handle captured methane.
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