Post-Election Outlook: Implications for Methane Tax, Permitting, and Energy Legislation

The 2024 elections have come to an end with former President Donald Trump regaining the White House. Control of the Senate has flipped with Republicans holding at least 51 seats. Republicans will likely retain a majority in the House of Representatives, though multiple races in swing districts still await final results.

What does that mean for GPA Midstream members? With Republican control of the Senate and White House, the President will be able to appoint nominees to key federal agencies, such as the Environmental Protection Agency (EPA) and the Pipeline and Hazardous Materials Safety Administration (PHMSA), with little opposition from within his party, and no support from Democrats.

Republican control of the Senate will also allow for judicial nominees to move forward with little obstacle. Existing Supreme Court justices with an originalist interpretation of the Constitution may retire since they would be replaced by like-minded successors, who would more easily go through a confirmation vote.

A majority in the House will define the full breadth of power the President will wield when passing regulations and crafting new legislation. Should Democrats gain control of the House, some deregulatory concessions could be withheld in potential government funding legislation next year. But action is still needed on funding legislation this year, so whether Republicans or Democrats control the House in 119th Session of Congress will have an impact on those negotiations.

Trump has made clear his desire to use natural gas, the energy GPA Midstream members move and process every day, as a force for good in the United States and for our allies who support our interests. The Department of Energy's "pause" on exports for liquified natural gas should be immediately rescinded. Permitting hurdles for the transport and distribution of natural gas are key areas for regulatory reform the incoming administration seems ripe to tackle.

New legislation will likely require 60 votes in the Senate and a majority vote in the House. This means bipartisanship is still required for major legislation on energy or permitting reform.

As GPA Midstream President and CEO Sarah Miller told Hart Energy, "Regardless of the outcome in November, our task is to build bipartisan support for real-world solutions to our energy needs. That means working with lawmakers and regulators so we can build the infrastructure necessary for America to remain the world leader in producing clean, reliable and affordable energy."

If Republicans control the House, Congress will have an avenue to enact key reforms through a budget reconciliation process in the Senate, which requires only a simple majority vote. The Methane Waste Emission Charge was passed during a reconciliation vote and has been interpreted by EPA to include taxes for non-waste, beneficial use emissions in common midstream operations. This methane tax, among other policies, will be ripe for the Senate to repeal with a Republican majority.

Regardless of the final composition of Congress, GPA Midstream will remain the only organization focusing solely on midstream natural gas issues. Many congressional members will fill new roles and require our subject matter expertise on issues no other organization encounters. Please join our committees and their work groups to be part of our engagement with leaders in D.C., as they make decisions that affect the lives of you, your families, and our communities.

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