BENEFITS OF THE BUILD BACK BETTER ACT’S METHANE FEE

The Build Back Better Act's methane fee is projected to reduce industrial greenhouse gas emissions by 172 million metric tons of CO2e annually by 2050, accounting for 65 percent of the Act's total industrial GHG reductions. The fee is expected to create approximately 70,000 jobs and add over $250 billion to the U.S. GDP by 2050. With abatement costs for over 95 percent of the potential being under $40/ton CO2e, the total cost to the oil and gas industry—including fee payments and abatement measures—is estimated at $133 billion, representing only 0.77 percent of projected industry revenues.

• The methane fee is a primary driver of the Build Back Better Act's industrial emission goals, projected to avoid 172 million metric tons (MMT) of carbon dioxide equivalent (CO2e) annually by 2050. This reduction is equivalent to the annual emissions of over 36 million gasoline-powered passenger vehicles and represents 65 percent of the Act's total industrial GHG emissions reductions from 2023 to 2050.
• The fee is expected to provide significant economic benefits, including the creation of more than 70,000 jobs by 2050 and a cumulative increase in U.S. GDP of more than $250 billion between 2023 and 2050. By 2050, the fee's contribution to the economy will be over $10 billion per year.
• Methane abatement is achievable at low cost using existing technology, such as well sealing and equipment maintenance. More than 95 percent of abatement potential costs less than $40/ton CO2e, with a weighted average cost of $19/ton CO2e.
• The total financial burden on the oil and gas industry from 2023 to 2050—comprising $90 billion for abatement and $43 billion in fee payments—totals $133 billion. This amount represents only 0.77 percent of the industry's projected $17.2 trillion in revenues, which is significantly lower than the average 4 percent profit margin.
• The methane fee is designed to complement EPA pollution limits. While standards ensure equitable reductions, the fee encourages companies to internalize pollution costs and provides revenues for program administration, technical assistance, and support for impacted communities.

APA

RISSMAN, J. (2021). BENEFITS OF THE BUILD BACK BETTER ACT’S METHANE FEE. Energy Innovation. https://energyinnovation.org/wp-content/uploads/Benefits-of-the-Build-Back-Better-Act-Methane-Fee.pdf

Chicago

RISSMAN, JEFFREY. BENEFITS OF THE BUILD BACK BETTER ACT’S METHANE FEE. Energy Innovation, 2021. https://energyinnovation.org/wp-content/uploads/Benefits-of-the-Build-Back-Better-Act-Methane-Fee.pdf.

Wikipedia

{{cite report |last1=RISSMAN |first1=JEFFREY |title=BENEFITS OF THE BUILD BACK BETTER ACT’S METHANE FEE |publisher=Energy Innovation |date=October 2021 |url=https://energyinnovation.org/wp-content/uploads/Benefits-of-the-Build-Back-Better-Act-Methane-Fee.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rissman2021benefits, author = {RISSMAN, JEFFREY}, title = {{BENEFITS OF THE BUILD BACK BETTER ACT’S METHANE FEE}}, institution = {Energy Innovation}, year = {2021}, month = oct, url = {https://energyinnovation.org/wp-content/uploads/Benefits-of-the-Build-Back-Better-Act-Methane-Fee.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }