Sens. Britt and Tuberville co-sponsor bill to repeal methane tax

In 2022, the Biden administration passed the Inflation Reduction Act, a landmark piece of legislation that included various provisions aimed at reducing the federal government’s budget deficit, lowering prescription drug prices, and promoting clean domestic energy. Among those provisions was a tax on methane emissions — the potent natural gas responsible for about 11 percent of greenhouse gas-related climate change.

This past November, Biden’s Environmental Protection Agency implemented a rule that outlined how the methane tax would be implemented, setting the initial fee at $900 per metric ton of methane emitted over a specific performance level during 2024. The fee then goes on to increase in subsequent years, rising to $1,200 per metric ton in 2025, then $1,500 per ton in 2026, and so on.

“The final Waste Emissions Charge is the latest in a series of actions under President Biden’s methane strategy to improve efficiency in the oil and gas sector, support American jobs, protect clean air, and reinforce U.S. leadership on the global stage,” EPA Administrator Michael Regan said in a November press release.

Not only would the tax reduce harmful greenhouse gas emissions but, according to a Congressional Budget Office analysis, it would also raise $6.35 billion for government spending over the next decade.

It is important to note, however, that the tax only applies to methane emissions coming from the oil and gas industry. The fees do not impact the agricultural sector despite agriculture being the largest source of methane emissions in the United States.

However, Biden’s methane tax may end up being short-lived, as U.S. Sens. Tommy Tuberville, R-Ala., Katie Britt, R-Ala., and their Republican colleagues in the Senate have re-introduced legislation that would repeal the methane emissions fees entirely.

The Natural Gas Tax Repeal Act does exactly what its title suggests and simply repeals the Inflation Reduction Act’s methane tax provision. It was initially introduced by U.S. Sen. Ted Cruz, R-TX, in May 2024, but failed to move through a Democrat-controlled Senate at the time.

Now, with Republicans in control of both houses of Congress and the Oval Office, the legislation has a much better chance of going into effect. Sen. Cruz reintroduced the bill just ahead of President Donald Trump’s inauguration last week with Britt and Tuberville once again co-sponsoring the legislation.

Following its reintroduction, Sen. Tuberville released an official statement applauding the Natural Gas Tax Repeal Act and attacking the Biden administration’s energy policies.

“The Biden administration has once again prioritized woke climate activists over the American people,” said 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 more government red tape. I am proud to join this legislation, which puts American families first and works toward American energy independence.”

In December 2024, before the Natural Gas Tax Repeal Act was reintroduced, Sen. Britt had joined other Congressional Republicans in introducing a bicameral Congressional Review Act resolution of disapproval to block the EPA’s implementation of the methane tax.

“Over the past four years, the American people have been drowning in high prices from the grocery store to the gas pump. It is past time to unleash American energy dominance and drive down costs for hardworking families,” Britt said at the time. “Blocking the Natural Gas Tax is an important step toward taking the lead on an America-first approach to energy policy. I will continue to prioritize legislation that unshackles our domestic energy industry and grows economic opportunity across our nation.” 

The Natural Gas Tax Repeal Act is also supported by the oil and gas industry, including the U.S. Oil and Gas Association, American Exploration and Production Council, Independent Petroleum Association of America, American Petroleum Institute, National Ocean Industries Association, Permian Basin Petroleum Association, Texas Alliance of Energy Producers, Texas Independent and Royalty Owners Association, and Texas Public Policy Foundation.