AGA among groups urging Congress to strike proposed methane fee from budget
The American Gas Association, along with other leading gas industry associations, are urging Congress to take a proposed methane fee out of the budget reconciliation bill.
The groups — AGA, the American Petroleum Institute (API), Independent Petroleum Association of America (IPAA), and Interstate Natural Gas Association of America (INGAA) – say they support methane emissions regulations that are safe, effective, and protect energy reliability. But they maintain that this proposed fee doesn’t help achieve those goals.
“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,” Amy Andryszak, president and CEO of INGAA, said.
Karen Harbert, president and CEO of AGA, said the additional taxes could lead to higher bills for customers.
“With one-third of households already facing challenges affording their energy needs, Congress should not add a new tax on natural gas. Our analysis indicates that the proposed tax could increase natural gas bills from 12 percent to 34 percent, depending on the variation of the proposal assessed,” Harbert said.
According to a recent survey, AGA found that natural gas customers could save up to 67 percent this winter compared to customers using other forms of energy while lowering their carbon footprints. Further, AGA’s research found that an Energy Star natural gas household could have a carbon footprint that is 19 percent lower than an Energy Star heat pump and 64 percent lower emissions compared to an electrical resistance furnace.
“This is nothing more than a tax on natural gas at a time when policymakers should be focused on solutions that support affordable, 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,” Frank Macchiarola, API senior vice president of policy, economics, and regulatory affairs, said.
Barry Russell, president and CEO of IPAA, pointed out that natural gas and petroleum account for nearly 70 percent of energy consumption in the U.S.
“These new taxes will not only impose a burden on industry and consumers generally, they are specifically designed to impose a new burden on small businesses. This costly policy will send both jobs and greenhouse gas emissions to other countries,” Russell said.
