US Energy Groups Praise Cruz’s Bid to End Natural Gas Tax
TL/DR –
U.S. Senator Ted Cruz has proposed a bill to repeal the Natural Gas Tax implemented in President Biden’s Inflation Reduction Act, claiming it will increase costs for energy customers and create new burdens for families already struggling with inflation. The bill specifically aims to eliminate a new methane emissions fee. The bill is backed by several oil and gas associations, including the Independent Petroleum Producers of America, the American Exploration and Production Council, and the American Petroleum Institute, who argue the tax would disrupt energy producers’ planning and compliance efforts, disadvantage consumers, and potentially lead to job losses and business closures.
U.S. Sen. Cruz Introduces Legislation to Repeal Natural Gas Tax
Sen. Ted Cruz (R-Texas) has unveiled a bill to repeal the Natural Gas Tax embedded in the Biden administration’s Inflation Reduction Act, potentially mitigating energy cost hikes and easing the burden for American families grappling with historic inflation. Most notably, the bill aims to eliminate the new methane emissions fee imposed by the law.
Sen. Cruz voiced his concern, stating, Joe Biden and his administration prioritize their climate agenda over American needs, exacerbating inflation while compromising American jobs and energy security. He emphasized that this fee would particularly damage Texas by undermining producers in the Permian Basin and across the state.
Among the numerous co-sponsors of the bill are Sens. Roger Marshall (R-Kan.), Mike Lee (R-Utah), Pete Ricketts (R-Neb.), Cindy Hyde-Smith (Miss.), 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.). Rep. August Pfluger (R-Texas-11) introduced the companion legislation in the U.S. House of Representatives, which passed earlier in the 118th Congress. Read the full text of the legislation here.
Several industry organizations including the Independent Petroleum Producers of America (IPAA), American Exploration and Production Council (AXPC), Permian Basin Petroleum Association (PBPA), Texas Public Policy Foundation (TPPF), Texas Alliance of Energy Producers, U.S. Oil & Gas Association (USOGA), American Petroleum Institute (API), and National Ocean Industries Association (NOIA) have expressed support for Sen. Cruz’s bill.
Ben Shepperd, President of the Permian Basin Petroleum Association, applauded Cruz for his steadfast support for American energy security. Karr Ingham, President of the Texas Alliance of Energy Producers, labeled the natural gas tax a poorly conceived legislation that threatens the survival of many Texas independent oil and gas companies. Jeff Eshelman, President & CEO of IPAA, called the methane tax a misguided burden on American energy producers and expressed support for Sen. Cruz’s repeal initiative.
Leaders of other trade associations, including Anne Bradbury (CEO, American Exploration & Production Council), Brent Bennett (Policy Director for Life: Powered, Texas Public Policy Foundation), Tim Stewart (President, USOGA), and Holly Hopkins (Vice President of Upstream Policy, API), also voiced support for the Natural Gas Tax Repeal Act, emphasizing the importance of balanced, practical energy policies that do not unfairly disadvantage consumers or American energy production.
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