Mobile Courant

U.S. Senator Tommy Tuberville (R-AL) has joined U.S. Senator Ted Cruz (R-TX) in introducing legislation aimed at repealing the Natural Gas Tax included in the Biden administration’s Inflation Reduction Act. The bill seeks to eliminate a new methane emissions charge created by the law, which its proponents argue will raise costs for consumers and disproportionately affect lower-income Americans.

“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.”

The legislation is co-sponsored 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). Congressman August Pfluger (R-TX-11) introduced companion legislation in the U.S. House of Representatives, which passed earlier in the 118th Congress.

Support for the bill comes from various industry groups including the American Public Gas Association, Independent Petroleum Association of America, American Exploration & Production Council, Permian Basin Petroleum, Alabama Municipal Electric Authority, Huntsville Utilities, and Electric Cities of Alabama.

Under the Inflation Reduction Act, the Environmental Protection Agency will use emissions data to assess a tax for emissions exceeding 25,000 tons of CO2e. The methane emissions charge starts at $900 per ton of methane in 2024, increasing to $1,200 per ton in 2025 and $1,500 per ton in 2026 and subsequent years. This fee impacts pipeline operators as well as oil and gas producers.

Critics argue that implementing this natural gas tax will hinder technological innovation, reduce supplies of affordable energy, and increase both costs and emissions. Estimates suggest that the tax could drive up household energy bills for approximately 180 million Americans and 5.5 million businesses reliant on natural gas.

Senator Tommy Tuberville represents Alabama in the United States Senate and serves on several committees including Armed Services, Agriculture, Veterans’ Affairs, and Health Education Labor Pensions Committees.