Large Methane User Fee Proposal
By
Pat H Burger
Posted: 2025-02-20T04:56:14Z
On Feb 19, 2025, I represented the Larimer LWV at a meeting of the Fort Collins Natural Resources Advisory Board in support of a Large Methane User Fee (LMUF). The Advisory Board was very receptive to our comments. I appreciate their interest in this proposal.
LWVLC Board approved collaborating with The Fort Collins Sustainability Group. The Sustainability Group is also partnering with the Community for Sustainable Energy. It is exciting to see the many environmental groups working together and putting forward workable solutions to the climate crisis.
The Large Methane User Fee Proposal is an alternative to increasing all citizen’s franchise fees on natural gas. Since May 2024 the Fort Collins Sustainability Group has refined its proposal. It reminds me of the Citizens’ Climate Lobby’s efforts to enact a Carbon Fee and Dividend program at the national level. The large user methane user fee would establish a fee on all methane use exceeding a relatively high annual minimum.
25% of Fort Collins’ greenhouse gas pollution comes from burning methane - aka natural gas; just over half of that pollution comes from commercial and industrial businesses. A relatively small number of these establishments are responsible for about 40% of this greenhouse gas pollution. Finally, the Fort Collins voters recently approved a ½% sales tax increase to pay for climate initiatives and other city programs. We believe it is time for industry and other large polluters to step up as well.
The proposal details establishes this fee on all methane use exceeding a relatively high annual minimum. It recommends using the revenue collected by this fee to set up a fund that could be accessed by businesses subjected to the fee to implement projects that would reduce their methane use.
The large methane users could apply for incentive payment to help them add insulation, improve building controls and purchase electric appliances to help them reduce methane use. It is estimated that if this proposal is adopted using a 10-15% fee on methane use exceeding 10,000 therms per year, it would raise approximately $2.5 to $3.8 million per year. About 30 industrial businesses and 700 commercial buildings would be subject to this fee.
The Larimer LWV is proud to be a partner with the Fort Collins Sustainability Group’s LMUF Proposal. We look forward to watching the Fort Collins Natural Resource Advisory Board and hope they move this proposal forward in the city.