TL/DR –
Senator Ted Cruz is introducing a bill to repeal the ‘natural gas tax’ in the Inflation Reduction Act (IRA), which allows the Environmental Protection Agency to impose fines on energy companies that emit more methane than permitted. The bill is supported by several organizations, including the Independent Petroleum Producers of America and the American Petroleum Institute. A similar bill has already been approved by House Republicans.
A New Bill to Abolish The Natural Gas Tax
Sen. Ted Cruz, R-Texas, has introduced a bill that proposes to abolish the “natural gas tax” found in the Inflation Reduction Act (IRA). The bill aims to annul the IRA provisions which empower the Environmental Protection Agency (EPA) to levy fines on energy companies that excessively emit methane, as reported by the Daily Caller.
Cruz Accuses Biden Administration of Prioritizing Climate Agenda
Accusing the Biden administration of prioritising its radical climate agenda over the needs of American citizens, Cruz stated, “They have heightened inflation, jeopardized American jobs and energy security. The methane emissions fee in the Inflation Reduction Act is particularly harmful to Texas as it undermines producers in the Permian Basin and across the state.”
Industry Support for Cruz’s Proposal
Cruz’s proposal has garnered support from multiple energy organizations such as the Independent Petroleum Producers of America, the American Exploration and Production Council, the U.S. Oil and Gas Association, and the American Petroleum Institute. A similar bill to repeal the IRA’s natural gas tax was already approved by House Republicans in March.
Response from House Republicans
Rep. August Pfluger, R-Texas, who authored the House bill, critiqued Biden’s tax on natural gas production as counterproductive. He said, “It does nothing but make it harder to produce American-made energy while driving up costs. Congress must act to repeal this looming regulatory disaster. The House has already passed my legislation to repeal the tax, and I am proud to work alongside Sen. Cruz to get it to the president’s desk. Energy security is national security.”
Senate Disapproves of Department of Energy Rule
Last week, the Senate voted in favor of a resolution authored by Cruz that disapproved of a Department of Energy rule on gas furnace efficiency standards. The rule effectively bans non-condensing gas furnace models, thereby escalating costs for American households.
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