The legal challenge to the U.S. Environmental Protection Agency’s EPA methane emissions tax under the Inflation Reduction Act highlights a significant clash between state and federal authorities.
The petition, spearheaded by Oklahoma Attorney General Drummond, argues that the EPA is exceeding its authority by imposing a tax on methane emissions generated by oil and gas facilities. This rule targets energy producers who exceed specified methane emission levels, with the goal of addressing climate change and reducing greenhouse gas emissions.
Oklahoma, joined by 21 other states, predominantly led by Republican governors, contends that the rule is an overreach, undermining the oil and gas industry.
The opposition is particularly strong in states like Alabama, Arkansas, Florida, and Georgia, which argue that such a tax could have detrimental economic impacts, raising costs for energy producers and potentially hurting state economies.
On the other side, the EPA maintains that this initiative is part of a broader effort to combat climate change, reflecting the federal government’s commitment to environmental protection.
This lawsuit underscores the ongoing tension between state efforts to safeguard their energy industries and the federal government’s regulatory agenda on climate change, setting the stage for a pivotal legal battle.