Austin News

U.S. Sen. Ted Cruz (R-Texas) has introduced legislation aimed at repealing the Natural Gas Tax included in the Biden administration’s Inflation Reduction Act. This tax, specifically a methane emissions fee, is viewed by Cruz and his supporters as a measure that would increase energy costs for consumers and place additional burdens on American families amidst historic inflation.

"Joe Biden and Biden officials have proven time and time again that they care more about their radical climate agenda than the needs of the American people," said Sen. Cruz. "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."

Sen. Hyde-Smith echoed these sentiments: "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."

Other senators expressed similar concerns about the impact of the tax on American energy production and national security. Sen. Cotton stated, "The Biden administration’s war on fossil fuels only hurts American business and makes us dependent on other countries for our energy." Sen. Tuberville added, "Since day one in office, Joe Biden has waged war on American energy — driving up costs and sending American jobs overseas."

Rep. August Pfluger (R-Texas-11), who introduced companion legislation in the House, emphasized that President Biden’s tax on natural gas production complicates efforts to produce domestic energy while increasing costs.

The bill has garnered support from several senators including 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.).

Numerous industry groups also back Cruz's bill. Ben Shepperd, President of Permian Basin Petroleum Association, stated: “Senator Cruz continues to fight for the American people, the American economy, and American energy security.” Karr Ingham, President of Texas Alliance of Energy Producers, remarked that “the natural gas tax is an ill-conceived piece of legislation that will clearly raise the cost of energy to US consumers.”

Jeff Eshelman, President & CEO of Independent Petroleum Producers of America, highlighted complications arising from compliance with EPA regulations due to this tax: “The methane tax...seriously complicates industry efforts to plan.” Erik Milito from National Ocean Industries Association noted that recent regulatory measures threaten economic stability.

Anne Bradbury from American Exploration & Production Council pointed out that this tax could lead to $6 billion in new taxes: “Thank you to Senator Cruz for leading the effort in the Senate to eliminate this burdensome tax.” Brent Bennett from Texas Public Policy Foundation called it a scheme with no environmental benefit.

Tim Stewart from USOGA described small oil producers as particularly affected: “It’s poorly designed tax...is designed to drive most small companies out of business.” Holly Hopkins from API underscored how such policies could stifle innovation: “We need policies that incentivize progress rather than limit it.”