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WASHINGTON, D.C. – U.S. Senator Cindy Hyde-Smith (R-Miss.) last week joined U.S. Senator Ted Cruz (R-Texas) in introducing legislation to repeal the natural gas tax included in the Biden administration’s climate change law.
S.4405 would repeal the section of the Inflation Reduction Act (IRA) that authorizes a new fee on methane emissions from certain types of facilities in the oil and gas sector. The fee is a tax that escalates in coming years, raising costs for energy consumers creating a new burden for American families struggling with historic inflation.
“President Biden’s assault on the U.S. oil and gas sector continues to worsen for the economy and for consumers. Since he took office energy prices have risen by more than 40 percent and the Inflation Reduction Act taxes on producers will only make it worse,” Hyde-Smith said. “When Democrats forced their climate change bill through Congress, I told everyone then that hard-working, middle-class families would end up paying the price for the tax increases on energy producers. That’s still true and the reason we need to pass this Natural Gas Tax Repeal Act.”
“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,” Cruz said.
S.4405 is also cosponsored by U.S. Senators Roger Marshall, M.D. (R-Kan.), Mike Lee (R-Utah), Pete Ricketts (R-Neb.), John Hoeven (R-N.D.), Katie Britt R-Ala.), Mike Braun (R-Ind.), Tommy Tuberville (R-Ala.), J.D. Vance (R-Ohio), Tom Cotton (R-Ark.), and John Barrasso (R-Wyo.). Read the full text of S.4405, which has been referred to the Senate Environment and Public Works Committee, here.
The legislation is supported by Independent Petroleum Producers of America (IPAA), American Exploration and Production Council (AXPC), U.S. Oil & Gas Association (USOGA), American Petroleum Institute (API), National Ocean Industries Association (NOIA), Permian Basin Petroleum Association (PBPA), Texas Alliance of Energy Producers, and Texas Public Policy Foundation (TPPF). Read endorsement statements here.
U.S. Representative August Pfluger (R-Texas) introduced the companion legislation, which passed earlier in the 118th Congress.
“President Biden’s tax on natural gas production does nothing but make it harder to produce American-made energy while driving up costs. Congress must take action to repeal this looming regulatory disaster. The House has already passed my legislation to repeal the tax, and I am proud to work alongside Senator Cruz to get it to the President’s desk. Energy security is national security,” Pfluger said.
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