The U.S. House of Representatives on March 22 approved legislation that includes a bill proposed by U.S. Rep. August Pfluger (R-TX) to repeal the natural gas tax included in the Inflation Reduction Act.
“The natural gas tax is inappropriate and highly unworkable,” Rep. Pfluger said on the House floor prior to the vote. “This tax was included despite never being considered in a hearing, receiving expert testimony, and, instead of looking at emissions holistically, the natural gas tax was based on the simple premise that if reliable energy is taxed, less of it will be produced.”
In a 209-204 vote, the House passed the larger GOP-led Cutting Green Corruption and Taxes Act, H.R. 1023, to repeal the Greenhouse Gas Reduction Fund, which provides financial and technical assistance to states and other eligible recipients to help enable low-income and disadvantaged communities carry out activities to reduce greenhouse gas (GHG) emissions, according to the congressional record bill summary.
H.R. 1023 includes the Natural Gas Tax Repeal Act, H.R. 1141, which Rep. Pfluger introduced in February 2023 alongside 35 Republican original cosponsors. The bill would eliminate the Environmental Protection Agency (EPA) program that provides incentives for petroleum and natural gas systems to reduce their emissions of methane and other GHG gasses.
His measure also would repeal a charge on methane emissions from specific types of facilities that are required to report their GHG emissions to the EPA’s Greenhouse Gas Emissions Reporting Program, says a summary in the congressional record.
“Especially as the EPA rolls out proposed rules to implement the natural gas tax, it is clear that Congress must take action to repeal this looming regulatory morass that targets all operators, no matter the size or actual emissions,” said Rep. Pfluger.
Independent oil and gas producers, said the congressman, haven’t invested millions in emissions reduction technologies because of government penalties.
“They have done it because it makes economic and environmental sense for them to do so,” he said, adding that if implemented, the natural gas tax would handicap technological innovation, reduce supplies of affordable energy, and increase both costs and emissions.
H.R. 1023 now heads to the U.S. Senate for consideration.