In a significant legislative move, the U.S. House of Representatives has voted to repeal a regulation that taxed methane emissions from natural gas operations.
News Nation Now reported that the repeal aims to alleviate regulatory pressures on the natural gas industry, according to its proponents.
The bill, known as the Natural Gas Repeal Act, saw a notably divided vote. It passed with a majority of 221 to 205 late Wednesday afternoon, reflecting a mix of bipartisan support and opposition within the House.
Introduced by Rep. August Pfluger, a Republican from Texas and chairman of the Republican Study Committee, the Act seeks to reverse the regulation introduced by the Biden administration in January 2024.
The regulation implemented a methane emissions tax aimed at reducing environmental impact but was criticized for potentially harming the economic aspects of the natural gas sector.
The repeal process was conducted under the Congressional Review Act (CRA), a powerful tool that allows Congress to invalidate recently introduced administrative rules and regulations.
This legislative maneuver has been pivotal in rapidly responding to regulatory changes that Congress deems burdensome or unnecessary.
The use of the CRA highlights the ongoing legislative battles over energy policy and regulatory governance. It reflects a broader conflict between efforts to enhance environmental protections and concerns about the economic impacts of such regulations.
Among those who voted, seven Democrats broke ranks to support the repeal, indicating a bipartisan concern over the economic effects of the methane tax. Conversely, Rep. Brian Fitzpatrick, a Republican from Pennsylvania, voted against the repeal, siding with Democrats who wished to maintain the regulation.
Following the House's decision, attention now turns to the Senate, where Republican Sen. John Hoeven of North Dakota has introduced similar legislation. The Senate is scheduled to vote on this matter Thursday evening.
Given the legislative alignments, expectations are high that President Donald Trump will sign the repeal into law should it pass the Senate.
This signature would mark a significant shift in U.S. energy policy, reverting from the Biden administration's regulatory approach back to a more deregulatory stance reminiscent of Trump's earlier tenure.
During the debates, Rep. August Pfluger articulated strong criticisms of the Biden administration's stance on fossil fuels. "People don’t want to do business when you regulate them out of business," Pfluger exclaimed, framing the regulation as detrimental to energy sector investments and operations.
Proponents of the repeal, including key industry stakeholders, argue that the methane tax imposes unnecessary financial burdens on the natural gas industry, potentially driving up costs for consumers and hindering economic growth.
"This tax raises costs on production, discourages investment, and increases energy prices across America," stated Rep. Pfluger in his address on the House floor. He expressed a commitment to not only undo this rule but to challenge the broader statutory basis for such taxes, aiming to reinforce what he termed as President Trump’s "pro-energy agenda."
Furthermore, Anne Bradbury, CEO of the American Exploration & Production Council, echoed these sentiments. "While American oil and gas producers are laser-focused on continuing to reduce emissions, it’s critical to undo these punitive implementing rules," she noted.
The legislative effort to repeal the methane tax is framed by supporters as a response to public demand for lower energy prices, a prominent issue in recent elections. "In November, the American people overwhelmingly voted for lower energy prices," explained Rep. Pfluger, highlighting the perceived electoral mandate for policy shifts like the repeal of the methane tax.
In pushing back against what many Republicans view as an "overreach" by the Biden administration, the passage of the Natural Gas Repeal Act marks an ongoing tug-of-war between environmental advocacy and energy sector interests.
The outcome of this legislative effort may set the tone for future energy policies and the strategic direction of U.S. environmental and economic priorities.