117 S4596 IS: Transparency and Honesty in Energy Regulations Act of 2022
U.S. Senate
2022-07-21
text/xml
EN
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II
117th CONGRESS
2d Session
S. 4596
IN THE SENATE OF THE UNITED STATES
July 21, 2022
Mr. Lankford (for himself, Mrs. Capito, Mr. Inhofe, Mr. Cornyn, Mr. Barrasso, Mr. Blunt, Mr. Cotton, Mr. Hoeven, Mr. Risch, Mr. Cramer, Mr. Daines, Mr. Marshall, and Ms. Lummis) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs
A BILL
To prohibit the Secretary of Energy, the Administrator of the Environmental Protection Agency, the Secretary of the Interior, the Secretary of Transportation, the Chair of the Council on Environmental Quality, and the Federal Energy Regulatory Commission from considering, in taking any action, the social cost of carbon, the social cost of methane, the social cost of nitrous oxide, or the social cost of any other greenhouse gas, unless compliant with Office of Management and Budget guidance, and for other purposes.
1.

Short title
This Act may be cited as the “Transparency and Honesty in Energy Regulations Act of 2022”.
2.

Findings
Congress finds that—
(1)
as a tool to justify Federal actions by the Secretary of Energy, the Administrator, the Secretary of the Interior, the Secretary of Transportation, the Chair of the Council on Environmental Quality, and the Chair of the Federal Energy Regulatory Commission to address greenhouse gas emissions, including the regulation or prohibition of the exploration, mining, production, and use of coal and other fossil fuels as energy sources, the social cost of greenhouse gases, specifically the social cost of carbon, the social cost of methane, and the social cost of nitrous oxide, represents the hypothetical cost of 1 incremental ton of carbon dioxide, methane, or nitrous oxide emissions in a given year;
(2)
the document of the Office of Management and Budget entitled “Circular A–4” and dated September 17, 2003—
(A)
guides Federal agencies on the development of regulatory impact analysis required under Executive Order 12866 (5 U.S.C. 601 note; relating to regulatory planning and review) and other authorities; and
(B)
instructs Federal agencies to include discount rates of 3 and 7 percent and evaluate the costs and benefits of the regulatory action that accrue to citizens and residents of the United States;
(3)
first developed in 2009 by an interagency working group that included the Department of Energy, the Environmental Protection Agency, the Department of Transportation, and the Council on Environmental Quality, the estimates for the social cost of carbon and the subsequently developed social cost of methane and social cost of nitrous oxide fail to comply with the 3- and 7-percent discount rates prescribed by the document of the Office of Management and Budget entitled “Circular A–4” and dated September 17, 2003;
(4)
while the document of the Office of Management and Budget entitled “Circular A–4” and dated September 17, 2003, specifies that, in carrying out an evaluation of the global effects of a rule, regulation, or action, the evaluation shall be reported separately from domestic costs and benefits of that rule, regulation, or action, the social cost of carbon, the social cost of methane, and the social cost of nitrous oxide instead calculates the global benefits in lieu of, not in addition to, the domestic costs of a rule, regulation, or action;
(5)
the use of the estimates of the social cost of greenhouse gases, including the estimates for the social cost of carbon, the social cost of methane, and the social cost of nitrous oxide, in the rulemakings and other actions of the Department of Energy, the Environmental Protection Agency, the Department of the Interior, the Department of Transportation, and the Council on Environmental Quality was without—
(A)
an adequate opportunity for public notice and comment; and
(B)
rigorous scientific peer review;
(6)
by Executive order, the interagency working group described in paragraph (3) was disbanded in March 2017, and the related estimates were withdrawn;
(7)
the Environmental Protection Agency developed new estimates in line with the document described in paragraph (4) in EPA–452/R–18–006, dated August 2018, and entitled “Regulatory Impact Analysis for the Proposed Emissions Guidelines for Greenhouse Gas Emissions from Existing Electric Utility Generating Units; Revisions to Emission Guideline Implementing Regulations; Revisions to New Source Review Program”;
(8)
Executive Order 13990 (86 Fed. Reg. 7037; relating to protecting public health and the environment and restoring science to tackle the climate crisis), issued on January 20, 2021—
(A)
reconvened the interagency working group described in paragraph (3);
(B)
directed the head of each Federal agency to include an interim figure for the social cost of carbon, the social cost of methane, and the social cost of nitrous oxide in any consideration of the effect of greenhouse gas emissions in any regulations and other relevant agency actions; and
(C)
directed the reconvened interagency working group to review and update the methodology and estimates for the social cost of carbon, the social cost of methane, and the social cost of nitrous oxide;
(9)
despite nearly a decade of investigation, the interagency working group described in paragraph (3) has lacked transparency and failed to sufficiently provide Congress and the public with information regarding how often the interagency working group met, the discussions of the interagency working group, and how the interagency working group arrived at its estimates;
(10)
(A)
the use of the interim social cost of greenhouse gas figures was challenged in court and a preliminary injunction was granted by the United States District Court for the Western District of Louisiana on February 11, 2022; and
(B)
the Fifth Circuit Court of Appeals stayed the preliminary injunction on March 16, 2022;
(11)
the Environmental Protection Agency relied on the interagency working group interim estimate of the social cost of methane, without appropriate peer review or opportunity for public notice and comment, in attempting to justify the costs and benefits of the proposed rule entitled “Standards of Performance for New, Reconstructed, and Modified Sources and Emissions Guidelines for Existing Sources: Oil and Natural Gas Sector Climate Review” (86 Fed. Reg. 63110 (November 15, 2021));
(12)
prior to the 2017 disbandment of the interagency working group described in paragraph (3), the Department of the Interior used the social cost of methane estimate to justify the costs and benefits of the final rule entitled “Waste Prevention, Production Subject to Royalties, and Resource Conservation” (81 Fed. Reg. 83008 (November 18, 2016));
(13)
court filings note that various agencies have 38 pending regulatory actions that rely on the interim social cost of greenhouse gases figures; and
(14)
continued use of the social cost of greenhouse gases, including the social cost of carbon, the social cost of methane, and the social cost of nitrous oxide by the Department of Energy, the Environmental Protection Agency, the Department of the Interior, the Department of Transportation, the Council on Environmental Quality, and the Federal Energy Regulatory Commission ignores sound science.
3.

Definitions
In this Act:
(1)

Administrator
The term Administrator means the Administrator of the Environmental Protection Agency.
(2)

Social cost of carbon
The term social cost of carbon means—
(A)
the estimate of the social cost of carbon described in—
(i)
the document entitled “Technical Support Document: Social Cost of Carbon for Regulatory Impact Analysis Under Executive Order 12866”, published by the Interagency Working Group on Social Cost of Carbon, United States Government, in February 2010;
(ii)
the document entitled “Technical Support Document: Social Cost of Carbon, Methane, and Nitrous Oxide Interim Estimates under Executive Order 13990”, published by the Interagency Working Group on Social Cost of Greenhouse Gases, United States Government, in February 2021;
(iii)
the document entitled “Technical Support Document: Technical Update of the Social Cost of Carbon for Regulatory Impact Analysis Under Executive Order 12866”, published by the Interagency Working Group on Social Cost of Carbon, United States Government, in May 2013 and revised in November 2013 and July 2015, and published and revised by the Interagency Working Group on the Social Cost of Greenhouse Gases, United States Government, in August 2016; or
(iv)
any successor or substantially related document; and
(B)
any other estimate of the monetized damages associated with an incremental increase in carbon dioxide emissions in a given year.
(3)

Social cost of greenhouse gas
The term social cost of greenhouse gas means—
(A)
the estimate of the social cost of any greenhouse gas that is described in any successor document to—
(i)
the document entitled “Technical Support Document: Social Cost of Carbon for Regulatory Impact Analysis Under Executive Order 12866”, published by the Interagency Working Group on Social Cost of Carbon, United States Government, in February 2010;
(ii)
the document entitled “Technical Support Document: Technical Update of the Social Cost of Carbon for Regulatory Impact Analysis Under Executive Order 12866”, published by the Interagency Working Group on Social Cost of Carbon, United States Government, in May 2013 and revised in November 2013 and July 2015, and published and revised by the Interagency Working Group on the Social Cost of Greenhouse Gases, United States Government, in August 2016;
(iii)
the document entitled “Addendum to Technical Support Document on Social Cost of Carbon for Regulatory Impact Analysis under Executive Order 12866: Application of the Methodology to Estimate the Social Cost of Methane and the Social Cost of Nitrous Oxide”, published by the Interagency Working Group on Social Cost of Greenhouse Gases, United States Government, in August 2016;
(iv)
the document entitled “Technical Support Document: Social Cost of Carbon, Methane, and Nitrous Oxide Interim Estimates under Executive Order 13990”, published by the Interagency Working Group on Social Cost of Greenhouse Gases, United States Government, in February 2021; or
(v)
any successor or substantially related document; and
(B)
any other estimate of the monetized damages associated with an incremental increase in greenhouse gas emissions in a given year.
(4)

Social cost of methane
The term social cost of methane means—
(A)
the estimate of the social cost of methane described in—
(i)
the proposed rule entitled “Oil and Natural Gas Sector: Emission Standards for New and Modified Sources” (80 Fed. Reg. 56593 (September 18, 2015));
(ii)
the final rule entitled “Oil and Natural Gas Sector: Emission Standards for New, Reconstructed, and Modified Sources” (81 Fed. Reg. 35824 (June 3, 2016));
(iii)
the regulatory impact analysis entitled “Regulatory Impact Analysis of the Final Oil and Natural Gas Sector: Emission Standards for New, Reconstructed, and Modified Sources”, prepared by the Environmental Protection Agency, Office of Air and Radiation, in May 2016 and identified by docket ID number EPA–HQ–OAR–2010–0505–7630;
(iv)
the document entitled “Addendum to Technical Support Document on Social Cost of Carbon for Regulatory Impact Analysis under Executive Order 12866: Application of the Methodology to Estimate the Social Cost of Methane and the Social Cost of Nitrous Oxide”, published by the Interagency Working Group on Social Cost of Greenhouse Gases, United States Government, in August 2016;
(v)
the document entitled “Technical Support Document: Social Cost of Carbon, Methane, and Nitrous Oxide Interim Estimates under Executive Order 13990”, published by the Interagency Working Group on Social Cost of Greenhouse Gases, United States Government, in February 2021; or
(vi)
any successor or substantially related document; and
(B)
any other estimate of the monetized damages associated with an incremental increase in methane emissions in a given year.
(5)

Social cost of nitrous oxide
The term social cost of nitrous oxide means—
(A)
the estimate of the social cost of nitrous oxide described in—
(i)
the document entitled “Addendum to Technical Support Document on Social Cost of Carbon for Regulatory Impact Analysis under Executive Order 12866: Application of the Methodology to Estimate the Social Cost of Methane and the Social Cost of Nitrous Oxide”, published by the Interagency Working Group on Social Cost of Greenhouse Gases, United States Government, in August 2016;
(ii)
the document entitled “Technical Support Document: Social Cost of Carbon, Methane, and Nitrous Oxide Interim Estimates under Executive Order 13990”, published by the Interagency Working Group on Social Cost of Greenhouse Gases, United States Government, in February 2021; or
(iii)
any other successor or substantially related document; and
(B)
any other estimate of the monetized damages associated with an incremental increase in nitrous oxide emissions in a given year.
4.

Prohibition on considering the social cost of greenhouse gas, including the social cost of carbon, the social cost of methane, and the social cost of nitrous oxide
The Secretary of Energy, under any authority, the Administrator, under any authority, the Secretary of the Interior, under any authority, the Secretary of Transportation, under any authority, the Chair of the Council on Environmental Quality, under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), the Chair of the Federal Energy Regulatory Commission, under any authority, the Secretary of the Treasury, under any authority, the Secretary of Agriculture, under any authority, the Secretary of Commerce, under any authority, and the Secretary of Health and Human Services, under any authority, may not consider the social cost of carbon, social cost of methane, social cost of nitrous oxide, or social cost of greenhouse gas—
(1)
as part of any cost-benefit analysis required under—
(A)
any law;
(B)
Executive Order 12866 (5 U.S.C. 601 note; relating to regulatory planning and review); or
(C)
Executive Order 13563 (5 U.S.C. 601 note; relating to improving regulation and regulatory review);
(2)
in any rulemaking;
(3)
in the issuance of any guidance;
(4)
in taking any other agency action; or
(5)
as a justification for any rulemaking, guidance document, or agency action.
5.

Report of the Administrator
Not later than 120 days after the date of enactment of this Act, the Administrator, in coordination and consultation with the Secretary of Energy, the Secretary of the Interior, the Secretary of Transportation, the Chair of the Council on Environmental Quality, and the Chair of the Federal Energy Regulatory Commission shall submit to the Committees on Environment and Public Works and Energy and Natural Resources of the Senate and the Committees on Energy and Commerce and Natural Resources of the House of Representatives a report describing the number of proposed and final rulemakings, guidance documents, and agency actions that, since January 2009, have used the social cost of carbon, the social cost of greenhouse gases, the social cost of methane, or the social cost of nitrous oxide, including the use of the social cost of carbon, the social cost of greenhouse gases, the social cost of methane, or the social cost of nitrous oxide as part of any cost-benefit analysis required under Executive Order 12866 (5 U.S.C. 601 note; relating to regulatory planning and review) or other relevant authority.