Methane Pollution Accountability Act
- Sponsor
- Rep. Rivas, Luz M. [D-CA-29]
- Committees
- Natural Resources Committee (primary)
- Last action
- Aug 6, 2026
Bottom line
The Methane Pollution Accountability Act aims to increase federal revenue and reduce methane emissions by requiring royalties on all produced gas, including wasted gas, from new federal leases and by locking in existing waste prevention regulations.
What it actually does
This bill mandates that royalties for gas produced from new Federal land and Outer Continental Shelf leases must be assessed on all gas produced, including gas lost through venting, flaring, or negligent releases. It provides specific exemptions for gas lost during emergencies, gas used on-lease for operational benefit, or gas that is unavoidably lost. Additionally, it requires the Director of the Bureau of Land Management (BLM) to enforce an existing waste prevention rule and restricts the finalization of new rules that would revise it unless they demonstrably further minimize waste or improve air quality and public health.
Proponents argue
Supporters argue this bill closes a loophole that currently allows oil and gas companies to waste natural gas through venting and flaring without paying royalties, thereby costing taxpayers revenue and contributing to climate change. They contend it promotes responsible resource management, incentivizes methane capture, and ensures fair compensation for public resources while improving air quality and public health.
Opponents contend
Opponents might argue that imposing royalties on lost gas increases the financial burden on producers, potentially discouraging domestic energy production and investment in federal lands. They may also contend that existing regulations are sufficient or that the bill's restrictions on future rulemaking limit necessary flexibility for the BLM to adapt to new technologies or market conditions.
The bill is very short and straightforward, allowing ample time for a thorough review of its provisions.
Section 2(a)
Mandating Royalties on All Gas Produced
This provision requires that for all new leases issued after the bill's enactment, royalties must be paid on all gas produced from Federal land and the Outer Continental Shelf. This includes gas that is consumed or lost due to venting, flaring, or negligent releases from equipment during the initial extraction process. The intent is to ensure that companies pay for all gas extracted, not just what is sold.
Supporters argue
Supporters argue this provision ensures fair market value for public resources by requiring companies to pay for all gas extracted, not just what they sell. They contend it incentivizes companies to invest in technologies to capture methane, reducing a potent greenhouse gas and generating additional revenue for taxpayers.
Critics contend
Critics might argue that this provision imposes an unfair burden on producers by requiring payment for gas that cannot be economically captured or sold. They may claim it could disincentivize production on federal lands, leading to reduced energy supply and higher consumer costs.
Tradeoffs
This provision balances the goal of maximizing public revenue and minimizing environmental waste against potential increases in operational costs for energy producers and concerns about impacts on domestic energy supply.
Section 2(b)
Exemptions for Certain Gas Losses
This subsection outlines specific situations where the new royalty requirement on all produced gas will not apply. These exceptions include gas vented or flared for up to 48 hours in emergency situations that threaten health, safety, or the environment; gas used or consumed directly on the lease area for the benefit of that lease; and gas that is deemed 'unavoidably lost.' These exemptions aim to provide flexibility for necessary operational activities and genuine unavoidable losses.
Section 3
Mandating Enforcement of Existing Waste Prevention Rule and Limiting Revisions
This section directs the Director of the Bureau of Land Management (BLM) to enforce a specific final rule published on April 10, 2024, concerning waste prevention and royalties (89 Fed. Reg. 25378). Crucially, it prohibits the BLM from finalizing a proposed rule from June 24, 2026 (91 Fed. Reg. 37906), or any other rule that would revise the 2024 rule, unless the Director certifies that the new rule would further minimize natural gas waste or improve air quality and public health. This effectively locks in the 2024 rule as the baseline for waste prevention.