O&G groups repeat call for removal of US methane fee
A quartet of oil and gas industry associations on October 26 repeated their call on congressional leaders in the US to remove a new natural gas tax – which they described as a methane fee – from the proposed budget reconciliation bill.
The group – the American Gas Association (AGA), the American Petroleum Institute (API), the Independent Petroleum Association of America (IPAA) and the Interstate Natural Gas Association of America (INGAA) – said it supports safe and effective regulations aimed at reducing emissions, and noted the US Environmental Protection Administration (EPA) is expected to propose significant new measures “any day now”.
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But the tax measures now before Congress, it said, would apply regardless of any new measures from the EPA.
“This tax on natural gas is not about reducing emissions – it’s about forcing American families, regardless of their income level, to help fund the reconciliation package through higher utility bills,” INGAA CEO Amy Andryszak said.
Karen Harbert, CEO of the AGA, said measures need to be implemented to drive down methane emissions without adding new tax burdens on families and businesses.
“Our analysis indicates that the proposed tax could increase natural gas bills from 12% to 34%, depending on the variation of the proposal assessed,” she said.
Frank Macchiarola, the API’s senior vice-president of policy, economics and regulatory affairs, said policymakers should be focused not on adding another layer of taxation but on solutions that support affordable and reliable energy while reducing emissions.
“The direct regulation of methane by the EPA is the most impactful way to build on the downward trend of methane emission rates in key producing regions rather than a duplicative and punitive natural gas tax that would only hurt American consumers and undermine the economic recovery,” he said.
And IPAA CEO Barry Russell said a new tax on natural gas would not only burden industry and consumers generally, it would specifically impose a new burden on small businesses.
“This costly policy will send both jobs and greenhouse gas emissions to other countries,” he said.