The US Senate has voted to overturn the Environmental Protection Agency's (EPA) proposed fee on methane emissions from oil and gas producers, reported Reuters.

This resolution, passed under the Congressional Review Act process, effectively annuls the escalating charge that was set to be implemented as part of the 2022 Inflation Reduction Act.

The Senate's decision follows a similar resolution passed by the House on Wednesday. The methane fee directed the EPA to set a charge on methane emissions for facilities emitting more than 25,000 tonnes (t) per year of carbon dioxide equivalent (CO₂e).

The fee was set to start at $900/t of methane in 2024, increasing to $1,200 in 2025 and $1,500 from 2026 onwards.

Methane, a potent greenhouse gas, often leaks from drill sites, pipelines and other oil and gas infrastructure.

In December 2023, the EPA finalised a rule to cut methane and other air pollutants from the oil and gas industry, which saw less opposition from the industry. A month later, a proposed regulation targeted wasteful methane emissions.

In March 2024, the American Petroleum Institute (API) and 19 industry associations called on the EPA to reconsider its "misguided" methane fee on the US energy sector.

Industry groups have welcomed the Senate's decision, with Independent Petroleum Association of America president Jeff Eshelman stating: "The Biden administration and Democrats in Congress passed the methane tax to single out and punish the oil and natural gas industry despite its already burdensome EPA regulatory framework."

In contrast, Democratic Senator Sheldon Whitehouse, the top Democrat on the Senate environment committee, expressed concern that the resolution would lead to higher energy prices and a decline in environmental quality for consumers.

The oil and gas industry is now preparing for the next steps following the Senate's decision, with expectations that President Donald Trump will sign the legislation swiftly.