Methane Emissions Fee Exposure Calculator
The Inflation Reduction Act imposes a methane waste emissions charge when operators exceed statutory thresholds. Enter your reported methane tonnage, the allowable threshold, and optionally the applicable fee schedule and production volume. The calculator outputs excess emissions, total fees owed, and intensity metrics that ESG and regulatory teams can fold into compliance reviews.
Consult environmental counsel and compliance teams to confirm applicability and calculation methodology before booking fees.
Examples
- 4,800 tons reported, 3,200-ton threshold, $1,500/ton fee, 58,000 MMcfe output ⇒ Excess 1,600.00 tons • Charge $2,400,000.00 • Penalized share 33.33% • Intensity 0.0828 tons/MMcfe.
- 2,950 tons reported, 3,500-ton threshold, $900/ton fee, production left blank ⇒ Excess 0.00 tons • Charge $0.00 • Penalized share 0.00% • Intensity n/a.
FAQ
How do I handle facilities with multiple baselines?
Run the calculator for each facility or basin and sum the resulting fees; thresholds can vary by segment and must be applied individually.
Does captured methane count toward the fee?
No. Enter net emissions after capture and destruction; only waste methane above the threshold is priced.
Can I model future fee increases?
Yes. Update the fee-per-ton field with scenario pricing—such as $1,800/ton—to understand exposure if Congress expands the program.
What if emissions data is estimated?
Use the best available measurement or OGMP framework estimates and rerun once verified readings are available to refine fee accruals.
Additional Information
- Fee defaults to the 2026 schedule ($1,500/ton); adjust for earlier years or negotiated settlements.
- Thresholds may reference statutory baselines or intensity formulas—confirm the correct benchmark for each facility type.
- Production volume input converts total emissions into a tons-per-MMcfe intensity for ESG reporting.
- Exclude emissions already mitigated by approved capture projects when entering the reported tonnage.