Published: June 5, 2024 |

[Click image to enlarge]

U.S. Senator Tommy Tuberville (R-AL) joined U.S. Senator Ted Cruz (R-TX) in introducing legislation to repeal the natural gas tax included in the Biden administration’s Inflation Reduction Act. New fees or taxes on energy companies will raise costs for customers, creating a burden that will fall most heavily on lower-income Alabamians and Americans. This bill eliminates a new methane emissions charge created by the law.

“Joe Biden and Biden officials have proven time and time again that they care more about their radical climate agenda the needs of the American people. They have driven up inflation and jeopardized American jobs and energy security, all of which would be made significantly worse by the methane emissions fee in the Inflation Reduction Act. This fee will particularly harm Texas by undermining producers in the Permian Basin and across the state,” said Senator Cruz.

“The Biden administration has once again prioritized woke climate activists over the American people. Since day one in office, Joe Biden has waged war on American energy — driving up costs and sending American jobs overseas. The last thing Americans need right now are higher taxes and government red tape. I am proud to join this legislation which puts American taxpayers first and works toward American energy independence,” said Senator Tuberville.

Senator Tuberville was joined by Senators John Barrasso (R-WY), Mike Braun (R-IN), Katie Britt (R-AL), Tom Cotton (R-AR), John Hoeven (R-ND), Cindy Hyde-Smith (R-MS), Mike Lee (R-UT), Roger Marshall (R-KS), Pete Ricketts (R-NE), and J.D. Vance (R-OH) in introducing the legislation.

Under the IRA, the EPA will use emissions data to assess a tax for emissions exceeding 25,000 tons of CO2e. The methane emissions charge under the IRA starts in calendar year 2024 at $900/ton of methane, increases to $1,200/ton in 2025, and increases to $1,500/ton in 2026 and subsequent years. The fee on methane emissions will impact pipeline operators and both oil and gas producers.

If EPA’s highly unworkable natural gas tax is implemented, it will handicap technological innovation, reduce supplies of affordable energy, and increase both costs and emissions.

Estimates indicate that the tax alone will drive up the cost of household energy bills for the 180 million Americans and 5.5 million businesses that rely on natural gas.

This legislated is supported by the American Public Gas Association, Independent Petroleum Association of America, American Exploration & Production Council (AXPC), Permian Basin Petroleum, Alabama Municipal Electric Authority, Huntsville Utilities, and Electric Cities of Alabama.

“Senator Cruz continues to fight for the American people, the American economy and American energy security. Worldwide demand for natural gas continues to grow and the American people, our economy and even the world’s environment, are better off when domestic natural gas production is supported by those in Washington, D.C. This Act does just that,” said Ben Shepperd, president, Permian Basin Petroleum Association.

“The natural gas tax is an ill-conceived piece of legislation that will clearly raise the cost of energy to US consumers, and at the same time, place Texas independent oil and gas companies, and tens of thousands of wells in the state in jeopardy. The Texas Alliance of Energy Producers, the voice of independents in Texas, strongly supports its repeal, and we applaud Senator Cruz for his efforts to protect the fabric of the oil and gas industry in Texas,” said Karr Ingham, president, Texas Alliance of Energy Producers.

“The methane tax that was included in the Inflation Reduction Act seriously complicates industry efforts to plan and comply with EPA and state regulations that address emissions from oil and natural gas production. The tax was passed without appropriate understanding of its impact or safeguards. IPAA supports Sen. Cruz’s legislation to repeal the misguided tax on American energy producers,” said Jeff Eshelman, president and CEO, Independent Petroleum Producers of America.

“Small U.S. oil and gas producers are the backbone to our domestic oil and gas industry and the Biden Administration has had us in its sights since the day one. It’s poorly designed tax on natural gas producers is designed to drive most of the small companies out of business so it can overregulate and overtax the ones that remain. The repeal of the natural gas tax brings balance back to the economics of producing energy in America. It will help lower energy costs so businesses can expand, and household budgets have a little more wiggle room for other necessities. And it reduces the numbers of Americans who are falling into energy poverty. The faster we ditch this bad idea — the quicker we can get back to work,” said Tim Stewart, president, USOGA.

Be in-the-know when you’re on-the-go!

CLICK HERE to register your email address.

Copyright © 2024 Mining Connection LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.

For licensing permission, .(JavaScript must be enabled to view this email address)