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One of the measures being considered as part of the budget reconciliation package moving through Congress is a methane tax on the oil and gas industry. This week, APGA joined the American Gas Association and other groups in the natural gas supply chain on a letter to Congress about how such a tax would impact consumers who rely on natural gas to fuel their homes.

The text for the proposal has not yet been released but based on previous methane tax proposals that have been introduced in the House and Senate this year, it is assumed that the fee would make production and transmission of natural gas more expensive. Those increased costs would then trickle down to APGA members and their customers in the form of higher natural gas prices.

In addition to pointing out the burden a methane tax would place on consumers, the letter also points out the efforts already underway by natural gas companies to reduce emissions and notes that federal agencies have already announced new, forthcoming methane emissions regulations that will make the tax duplicative.

A copy of the letter is available here.

For questions on this article, please contact Emily Wong of APGA staff by phone at 202-470-4262 or by email at ewong@apga.org.