WASHINGTON – 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.
“The Biden administration has once again prioritized woke climate activists over the American people,” said Senator Tuberville. “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.”
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.
Congressman August Pfluger (R-TX-11) introduced the companion legislation in the U.S. House of the Representatives, which passed earlier in the 118th Congress.
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.
Read the full text of the legislation here.
BACKGROUND:
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.
READ MORE:
Tuberville Statement on Senate Passage of Resolution To Overturn Biden Gas Furnace Rule
Tuberville Sponsors Resolution To Overturn Biden GHG Emissions Performance Measure Rule
Tuberville Joins Resolution to Block Biden Gas Furnaces Rule
Tuberville, Marshall Introduce Bill To Save Clean, Safe Nuclear Power
Tuberville Blasts Biden Administration For Playing Politics With U.S. Energy
Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, and HELP Committees.
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