23 States Sue Biden’s EPA Creation of Unlawful Tax to Harm US Energy Industry

Texas Attorney General Ken Paxton led a 23-State coalition to sue the U.S. Environmental Protection Agency (“EPA”) for adopting a Final Rule that would unlawfully tax the oil and gas industry in the last days of the Biden Administration.

● In January 2024, the EPA proposed a plan to implement a Methane Tax that was created in the Inflation Reduction Act.

● The new tax would force many energy producers to pay the government more money for the purpose of so-called “climate benefits.”

● In addition to being bad policy, however, the rule is unlawful.

● The proposed regulations represent arbitrary and capricious actions that exceed the agency’s statutory authority.

After the Biden Administration announced the rule, Attorney General Paxton joined a multi-state coalition of Attorneys General urging the EPA to abandon the unlawful regulations that would burden the nation’s energy industry.

Now that the EPA has issued a Final Rule, Attorney General Paxton has sued the Biden Administration to prevent the regulation from taking effect.

“Over the past four years I have opposed the Biden Administration more than 100 times to stop its radical attempts to undermine the law. I am positive this last-minute effort to harm the energy industry will be halted as well,” said Paxton. “In only four days, when President-elect Trump resumes office, America will no longer be burdened by a runaway bureaucracy intent on destroying our liberties.”

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