S 143119th CongressIn Committee

Natural Gas Tax Repeal Act

Introduced: Jan 16, 2025

Standard Summary

Comprehensive overview in 1-2 paragraphs

This bill, titled the Natural Gas Tax Repeal Act, would repeal Section 136 of the Clean Air Act, which currently governs a methane-emissions and waste-reduction incentive program for petroleum and natural gas systems. In addition, it would rescind any unobligated funds that were made available under that section as it existed before enactment. In short, the bill would end the federal program aimed at incentivizing methane emission reductions and waste reduction in oil and natural gas operations and would take back unspent appropriations tied to that program. The overall effect is a rollback of federal incentives intended to reduce methane emissions from natural gas operations.

Key Points

1Repeals Section 136 of the Clean Air Act, eliminating the methane emissions and waste reduction incentive program for petroleum and natural gas systems.
2Takes away unobligated funds that were available under Section 136 as it existed before enactment.
3The bill’s short title is the "Natural Gas Tax Repeal Act," but the action is the removal of an incentive program rather than a direct repeal of a tax.
4No new funding or alternative programs are created; the existing incentive framework is simply removed.
5The bill does not specify transition rules, so ongoing awards or obligations may be affected by the repeal.

Impact Areas

Primary: Oil and natural gas industry players (especially operators with methane capture or waste-reduction projects), who would lose access to possible federal incentives and funding under Section 136.Secondary: Regulators and state programs that coordinate with or rely on federal methane-reduction incentives; environmental and climate policy advocates concerned with methane emissions reductions.Additional: Federal budget and EPA program operations, as unobligated appropriations tied to Section 136 would be rescinded, potentially altering near-term spending and grant availability.

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