Attorney General urges Congress to block “methane fee”

Alaska joins 19-state effort opposing higher natural gas, oil costs

October 19, 2021

(Anchorage, AK) - Attorney General Treg Taylor has asked Congress to reject burdensome proposed legislation that would increase fees on energy producers and potentially lead to higher heating bills for Alaska consumers this winter.

The Attorney General joined a 19-state coalition in a letter sent this week to two U.S. Senate committees. Committee leadership was asked to oppose legislation that would charge oil and natural gas producers $1,500 to $1,800 per ton of methane emissions above certain thresholds.

The attorneys general cite data from industry experts showing that the more costly proposal could impose a cost of $14.4 billion and affect as many as 155,000 jobs.

"In an uncertain economy with increased prices everywhere, this is no time to add another burden to our energy producers and consumers," Taylor said. "With inflation at a 30-year-high, Congress should be seeking other solutions."

Taylor and his counterparts noted that competing fee proposals, one in the Senate and another in the House, come at a particularly tough time for consumers. The coalition's letter cites analysts who predict natural gas bills could be 30 percent higher this winter, adding to soaring prices at the gasoline pump and past due utility bills that have piled up at record levels due to the pandemic.

Instead of imposing additional fees on oil and gas producers, the attorneys general call upon leaders for the Senate's Committee on Environment and Public Works and Committee on Energy and Natural Resources to focus on affordable energy solutions.

The coalition's letter argues the Senate and House proposals could inspire more emissions-focused taxes, such as measures that would involve federal regulators extending the tax to other sectors and potentially a broader carbon tax.

For instance, the attorneys general specifically note that the Environmental Protection Agency could wrongly extend the proposed tax to agricultural operations, landfills and coal mining, all of which produce methane as well.

The letter was addressed to Sens. Tom Carper, D-Delaware, and Shelley Moore Capito, R-West Virginia, chairman and ranking member of the Committee on Environment and Public Works, as well as Sens. Joe Manchin, D-West Virginia, and John Barrasso, R-Wyoming, chairman and ranking member of the Committee on Energy and Natural Resources.

Alaska joined the letter with attorneys general from Alabama, Arkansas, Georgia, Indiana, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nebraska, North Dakota, Oklahoma, South Carolina, South Dakota, Texas, Utah and West Virginia.

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Department Media Contact:Communications Director Aaron Sadler.