Pfluger, Cruz Introduce Bill to Strike Down Biden Natural Gas Tax

WASHINGTON, DC — Congressman August Pfluger (TX-11) and Senator Ted Cruz (R-TX) introduced legislation to alleviate a tax burden President Biden put on "hardworking Texans" and Americans across the country.

The Natural Gas Tax Repeal Act will strike the natural gas tax imposed by President Biden in the Inflation "Expansion" Act, and will ultimately lower costs for customers. 

“President Biden has spent the past four years pandering to progressive climate activists — pushing legislation that has crippled the American energy industry," Congressman Pfluger said. "The President’s harmful natural gas tax has driven up the cost of household energy bills and has made inflation even worse for hardworking Americans. I am proud to work with Senator Cruz to stand up for the Permian Basin by reintroducing the Natural Gas Tax Repeal Act to strike the President’s tax on natural gas."

“Joe Biden's administration has prioritized an extreme climate agenda over the needs of Americans," Senator Cruz said. "Their policies have driven inflation, risked jobs, and hurt energy security. The methane fee in the Inflation Reduction Act harms Texas producers in the Permian Basin. Under President Trump, this policy will be reversed. I am leading the fight in the Senate to restore energy independence, protect jobs, and prioritize America."

The text of this legislation is available here.

Rep. Pfluger's bill is supported by several American Energy Groups who applauded his leadership on this legislation, including the Permian Basin Petroleum Association (PBPA), American Exploration and Production Council (AXPC), 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).

Ben Shepperd, President of the Permian Basin Petroleum Association said, “It is a new day in Washington but thankfully, Congressman Pfluger returns to fight for the American people and the people of the Permian Basin. Worldwide demand for natural gas continues to grow and American natural gas helps meet the needs of people around the world. This Act will help ensure that sensible energy policies prevail for the benefit of all.”

Anne Bradbury, President & CEO, American Exploration & Production Council said, “The punitive natural gas tax is counterproductive as it threatens higher energy prices for American families and businesses, and it ignores the work of American energy companies to reduce methane intensity and overall emissions from their operations. Congressman Pfluger's reintroduction of the Natural Gas Repeal Act is an important step toward ensuring energy affordability and reliability for the American people, and ensuring that American energy production remains competitive on the global stage.”

Greg Sindelar, CEO, Texas Public Policy Foundation said, “Taxing methane emissions is an expensive form of virtue-signaling that does nothing but harm U.S. energy production while outsourcing emissions to countries with far worse environmental standards. We commend Rep. Pfluger and Sen. Cruz for standing up for American energy and working to lower costs for families by repealing this misguided tax.”

Karr Ingham, Economist, President, Texas Alliance of Energy Producers said, “The methane fee is an ill-conceived tax on the production and delivery of petroleum energy to the American people and customers of U.S. domestic energy around the world. It punishes the U.S. domestic oil and gas industry in Texas and beyond. It will put Texas companies out of business, and result in the shuttering of thousands of wells in the state. The Texas Alliance of Energy Producers enthusiastically supports its repeal, and we applaud and appreciate Congressman Pfluger for his efforts to eliminate this damaging and onerous tax on American energy and oil and gas producers in Texas.”

Tim Stewart, President, US Oil & Gas Association said, “Over the past four years, the Biden Administration created the most hostile regulatory and legislative climate for the oil and gas industry in our 160-year history. They capped their legacy with a poorly designed natural gas tax on small US oil and gas producers – which is really a tax on US consumers.  This tax needs to be repealed as quickly as possible before American households really begin to feel its pinch. We applaud the Congressman for acting so quickly to protect the pocketbooks of moderate and low-income families. We look forward to working with him to get this legislation quickly passed.”

Amanda Eversole, API Executive Vice President and Chief Advocacy Officer said,“American voters sent a clear message in support of affordable, reliable energy, and now it’s time to deliver by repealing misguided policies like the natural gas tax. We thank Rep. Pfluger for his leadership and look forward to working with the incoming administration and Congress to advance a pro-consumer regulatory approach that balances the need to reduce emissions with meeting growing energy demand.”

Erik Milito, President, National Ocean Industries Association (NOIA) said, “Congressman Pfluger’s Natural Gas Tax Repeal Act will play a critical role in counteracting the inflationary impacts created by the previous administration, which have disproportionately affected lower-income Americans. This legislation will reduce Americans’ energy costs and strengthen our domestic energy sector, providing much-needed economic relief to families nationwide.”