Key Vote: Stream Rule and BLM Methane CRAs

This week, the House of Representatives is set to vote on two Congressional Review Act (CRA) resolutions aimed at repealing Obama regulations limiting responsible coal and natural gas production. The resolutions would nullify the Bureau of Land Management (BLM) regulation for methane venting and flaring and the Interior Department’s Stream Protection Rule (SPR). We urge Representatives to vote YES on both resolutions.

The Congressional Review Act allows for Congress to halt certain regulatory actions. Congress can pass a joint resolution of disapproval for a rule within 60 legislative days of publication and prohibit agencies from enacting any substantially similar rules. The BLM methane rule and the Interior Department Stream Protection Rule, which were finalized in November and December of 2016, are prime examples of costly regulatory excess and are ripe for review under the CRA. According to the American Action Forum, these two rules combined will cost $3.5 billion.

The BLM methane rule would require the oil and gas sector to take unnecessarily costly measures to reduce methane emissions on federal lands by up to 45 percent by 2025. However the rule would reduce global greenhouse gas emissions by a mere 0.0092 percent, making this “all economic pain for no environmental gain” rule the poster child for excessive and unnecessary government regulation.

Furthermore, this regulation ignores the significant strides that the industry is already making. According to the EPA, methane emissions fell by 13 percent from 2011—2014—a time when natural gas production significantly increased. In addition, methane emissions from hydraulic fracturing fell by 81 percent from 2012—2014. We don’t need a federal regulation to force oil and gas producers to control their methane emissions—methane itself is a versatile fuel source and valuable commodity.

Similarly, the Interior Department’s Stream Protection Rule is an unnecessary federal regulation. The SPR is largely duplicative—the EPA and Fish and Wildlife Service already administer many of the Interior Department’s new regulatory changes. The Department of Interior’s Office of Surface Mining Reclamation and Enforcement estimates that the SPR would lead to additional annual compliance costs of $52 million. According to some estimates, the SPR could put over 280,000 jobs at risk, including up to 78,000 in the coal mining industry. This regulation would have the largest impact on the people of West Virginia, Ohio, Kentucky, and Pennsylvania—states that have already endured years of costly regulations from the Obama administration’s war on affordable and reliable energy.

The BLM methane rule and the Interior Department’s Stream Protection Rule are unnecessary regulations that will destroy jobs and make energy more expensive for American families. AEA will score both votes in its American Energy Scorecard. Representatives should vote YES on the CRA resolutions to repeal both the BLM’s methane rule and the Interior Department’s Stream Protection Rule.

AEA Applauds Action on Keystone and Dakota Access Pipelines

WASHINGTON – President Trump has signed executive actions today to advance the Keystone XL and Dakota Access pipelines and to streamline the permitting process for important energy and infrastructure projects. The American Energy Alliance (AEA) looks forward to analyzing these particular actions when the White House releases the final text of the orders. AEA President Thomas Pyle issued the following statement:

“President Trump is wasting no time implementing the pro-growth energy policies he talked about on the campaign trail. More importantly, with these actions today, President Trump is signaling that the federal government will once again honor the rule of law.

“Keystone XL and the Dakota Access Pipeline are long overdue infrastructure projects that have been senselessly and needlessly delayed by politics. In both cases, the previous administration changed the rules in the middle of the game, violating the rule of law and betraying Americans’ trust in the federal government. The Trump administration is sending a strong signal that it is serious about putting Americans’ needs first and that pipelines and other important energy projects will no longer languish due to political pressure from the ‘keep-it-in-the-ground’ crowd.

“Pipelines are a safe, efficient way to transport our energy resources and are critical to strengthening the economy. While these two projects are important, the real story here is that the federal government is no longer going to play political games by slow-walking permits or changing course in the middle of a legal process. It is refreshing to have an administration that recognizes the undeniable link between sound energy policy and a strong America.”

Click here to read IER’s latest analysis on how the Obama administration violated the rule of law on the Dakota Access Pipeline.

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AEA Statement on EPA’s Final Determination for Fuel Economy Mandate

WASHINGTON – The American Energy Alliance (AEA) opposes the Obama administration’s decision to move forward with its unrealistic and costly fuel economy mandate for 2022-2025. AEA spokesman Chris Warren released the following statement:

“The Obama administration is trying to cement an agenda that the American people have rejected—not just at the polls, but also through their vehicle choices. The fuel economy mandates for 2022-2025 are outrageously unrealistic and will make it increasingly difficult for American families to afford new cars. Politics are clearly the motivating factor behind the Obama administration’s decision as they broke with their own timeline to ram this costly mandate through before January 20th. We look forward to the Trump administration taking a more level-headed approach that puts fuel economy standards in line with the needs of American families.”

Click here to read the Institute for Energy Research’s official comment.

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Coalition Calls on Senate to Confirm Pruitt as EPA Chief

WASHINGTON — Today the American Energy Alliance released a coalition letter signed by more than 20 organizations urging the Senate to confirm Scott Pruitt as the next EPA Administrator. Below is an excerpt from the letter:

Attorney General Pruitt has consistently fought for Oklahoma families and communities and has been a stalwart defender against federal intrusion into state and individual rights. Notably, Mr. Pruitt led a multi-state effort opposing the EPA’s unlawful attempt to take over the nation’s electricity grid under section 111(d) of the Clean Air Act. The EPA’s plan would shutter an estimated 40 GW of reliable and affordable energy, unnecessarily harming American families for little to no environmental benefit.

In recent years, the EPA has been chronically late on complying with deadlines. In a study assessing 1,000 deadlines across the four major stationary source programs, the Competitive Enterprise Institute found that the EPA missed 84 percent of their Clean Air Act deadlines and was late by an average of 4.3 years. Mr. Pruitt will work to get the EPA back on track and in compliance with its statutory Clean Air Act responsibilities.

Attorney General Pruitt has stood up for states, families, and the Constitution by opposing the Administration’s unconstitutional regulatory overreach through the re-definition of the “waters of the United States.” This rule was so invasive that small ditches on family farms or near businesses could have been subject to federal regulation. Mr. Pruitt filed suit against the EPA, refusing to subject Oklahomans and other Americans to this unconstitutional regulation without exhausting all legal pathways.

Mr. Pruitt has demonstrated his commitment to upholding the Constitution and ensuring the EPA works for American families and consumers. Under Mr. Pruitt, we hope the EPA will follow the laws set forth by Congress and cooperate with states to advance its mission of keeping our air clean and our water pure. We fully support Mr. Pruitt for the position of EPA Administrator and encourage the Senate to swiftly approve his nomination.

Click here to view the full letter.

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AEA Key Votes Regulatory Reform Bills

WASHINGTON — Today the American Energy Alliance urged all Representatives to vote YES on both the REINS Act and the Midnight Rules Relief Act. Below is the text of AEA’s key-vote alert:

This week, the House is set to vote on two regulatory reform measures. The Regulations from the Executive in Need of Scrutiny (REINS) Act would increase accountability and transparency in the federal regulatory process. The Midnight Rules Relief Act would ease the process by which Congress can consider Congressional Review Acts (CRA), expediting the process of rolling back overbearing regulations. Representatives should vote YES on both bills.

The REINS Act would require a joint resolution of approval from Congress for all major rules. According to GAO, a major rule is:

…one that has resulted in or is likely to result in (1) an annual effect on the economy of $100 million or more; (2) a major increase in costs or prices for consumers, individual industries, federal, state, or local government agencies, or geographic regions; or (3) significant adverse effects on competition, employment, investment, productivity, or innovation, or on the ability of United States-based enterprises to compete with foreign-based enterprises in domestic and export markets.

Thus, the REINS Act would make America’s elected representatives more accountable for federal regulations. Rules such as the Clean Power Plan, Waters of the United States, and ozone regulations would be subject to review by Congress, not left to the whim of unelected bureaucrats. The REINS Act would still allow agencies to perform their functions as delegated by Congress, but extends a necessary check on the rulemaking process. This is especially important as agencies like the EPA and Interior Department have imposed very controversial regulations that cost billions of dollars over with little benefits.

The Midnight Rules Relief Act would improve the CRA process by allowing for en bloc consideration of CRA bills. A CRA is a joint resolution of disapproval for specific major rules that would prohibit the rule from taking effect. It also bars agencies from promulgating a substantially similar rule in the future, unless Congress specifically authorizes it.

Under the current process, each individual regulation must have its own CRA, of which debate is limited to 10 hours. The Midnight Rules Act would appropriately streamline this process, allowing multiple rules to be included in one CRA bill.

The American Energy Alliance urges all Representatives to vote YES on both the REINS Act and the Midnight Rules Relief Act. Passage of these bills would send a strong message that the 115th Congress is serious about regulatory reform and turning a new page in American government.

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Obama’s Offshore Ban is a Disservice to the American People​

​WASHINGTON – American Energy Alliance Vice President of Communications Chris Warren issued the following statement on President Obama’s unilateral ban of offshore leasing for oil and gas production:

“President Obama is doing a great disservice to this country by putting the demands of special interest activists above the interests of the American people. These offshore areas belong to the public and should be used to their benefit—not to further the president’s keep-it-in-the-ground political agenda. President Obama has worked unilaterally throughout his presidency to block the production of our most abundant, affordable, and reliable energy resources. He clearly doesn’t trust ​nor want the ​American​ people to use their own lands judiciously. This is yet another shameful act by the president in the waning days of his administration. We look forward to the Trump administration’s pro-growth and pro-consumer approach.”​​

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AEA Issues Statement on Nomination of Rep. Ryan Zinke for Interior Secretary

WASHINGTON – American Energy Alliance Vice President of Communications Chris Warren issued the following statement on President-elect Trump’s nomination of Rep. Ryan Zinke to be the next Secretary of the Interior:

“Rep. Zinke is another strong addition to President-elect Trump’s cabinet. As a Westerner from an energy-rich state, he understands that responsible energy production is critical to ensuring affordable energy for American families and creating new opportunities for American workers. Between Governor Perry, AG Pruitt, and Rep. Zinke, President-elect Trump is putting together an all-star cast to reset our country’s energy and environmental policy.”

AEA Applauds Selection of Gov. Perry to Run Energy Department

WASHINGTON — The American Energy Alliance applauds President-elect Trump’s selection of former Texas Governor Rick Perry to be the next Secretary of Energy. AEA Vice President of Communications Chris Warren issued the following statement:

“Governor Perry will bring a tremendous amount of experience and knowledge to the Department of Energy. Having spent 15 successful years as the governor of Texas, he has a proven track record as an executive who can get the job done. During his time as governor, Texas was not only a leader in energy production, but also emerged as a hub for the manufacturing and tech industries.

“The Department of Energy is a $30 billion per year agency that employs more than 100,000 people and oversees a broad set of issues. Governor Perry’s executive experience makes him an excellent choice to lead such an expansive operation. We are confident that he will run the agency in a way that best serves the needs of the American people.”

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AEA Applauds Selection of Oklahoma AG Scott Pruitt to Run EPA 

WASHINGTON – The American Energy Alliance applauds President-elect Trump’s selection of Oklahoma Attorney General Scott Pruitt to be the next Environmental Protection Agency (EPA) Administrator. AEA Vice President of Communications Chris Warren issued the following statement:

“Attorney General Pruitt has been a champion for consumers and working-class families in Oklahoma. We know he will do the same for all Americans as EPA Administrator. AG Pruitt will reset energy and environmental policy in ways that will grow the economy, improve the environment, and make life better for the American people.”

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10 Questions on Fuel Economy Mandates for EPA’s Janet McCabe

This week, the Subcommittee on Oversight and Investigations in the House Committee on Energy and Commerce is slated to host a hearing regarding the Volkswagen’s use of emissions defeat devices and the Zero Emissions Vehicle (ZEV) program. The Subcommittee has summoned Acting EPA Air and Radiation Administrator Janet McCabe to testify in response to questions surrounding the ZEV program implementation.

This hearing is a welcome opportunity for the Subcommittee to question Ms. McCabe on the ZEV program, and, by extension, EPA’s fuel economy mandates for cars and light-trucks. In a surprise move that was months ahead of EPA’s own schedule (which was previously posted on EPA’s website), last week EPA made a Proposed Determination to keep the 2022-2025 fuel economy mandate unchanged. Given the EPA’s haste, the only plausible explanation for EPA’s quick decision was to finalize their determination before President-elect Trump takes office.

It is surprising that EPA did not revise their 2022-2025 mandate given the evidence. New research shows that car prices are rapidly increasing. From the 1990s through 2008, car prices were falling on a quality adjusted basis. Today, car prices are $6,000 more than they would have been if the trend had continued. An additional $6,000 for a vehicle a lot of money.

Given the timing of EPA’s decisions and the economic strain being placed on the American car buying public, the Subcommittee should use this hearing to get answers from Ms. McCabe on what exactly is going on with EPA’s fuel economy mandates and the ZEV program. Here are ten questions the Subcommittee should ask Ms. McCabe:

1.) Your agency recently released its Proposed Determination document regarding EPA’s 2022-2025 GHG mandate for light duty vehicles. The Proposed Determination did not change the mandate, despite the fact that the price of new vehicles, adjusted for quality, are $6,000 per vehicle higher than if the price trend from the 1990s through 2008 had continued. Are you not concerned about forcing American families to pay $6,000 more per vehicle?

Note: If McCabe is unfamiliar with the study, that is very concerning. The study was cited thousands of times in comments to EPA. If she is not familiar with the study, then why did EPA quickly and aggressively make the Proposed Determination?

2.) According to EPA, the Obama administration’s fuel economy mandates will cause the price of a new car to increase by $3,000 per vehicle. The National Association of Automobile Dealers estimates that a $3,000 per vehicle increase in the cost of a vehicle would force nearly 7 million people out of the market for a new car. Car prices have already increased more than that, compared to the long-term price trend. Why is EPA so upbeat about imposing this mandate that is forcing millions of American drivers out of the market for a new car?

3.) The Center for Automotive Research recently looked at the economic impacts of the fuel economy mandates in various scenarios. In 8 of the 9 scenarios, EPA’s mandate would cause net jobs losses. In fact, the only scenario that does not show job losses is if the cost of the mandate is only $2,000 a vehicle. Why is EPA not more concerned about how this regulation will lead to job losses in the United States?

4.) The evidence suggests that EPA’s fuel economy mandate has driven up the cost of a car by thousands of dollars–making the dream of car ownership more difficult for millions of American families. EPA is doing this because of climate change. According to EPA, the 2017-2025 mandate will only reduce global temperatures by 0.01–0.02 °C by 2100. Why is EPA reducing the mobility and freedom of millions of Americans, not to mention thousands of jobs, in exchange for a change in global temperature of 2 hundredths of a degree by 2100?

5.) Last week you issued a Proposed Determination on the 2022-2025 mandate. To do this, you had to review over 220,000 comments in only 44 working days since the end of the comment period. Given the incredible importance of automobility and the impact this mandate will have on the economy as a whole, why did you rush to make such a hasty judgement?

6.) You released your Proposed Determination on November 30, 2016.EPA’s website previously had a timeline which showed the Proposed Determination being issued in mid-2017, not in 2016. NHTSA’s website has a similar graphic.

nhtsa-cafe-timeline

Furthermore, your letter to Chairman Upton dated June 10, 2016 stated that “…EPA anticipates that [the Determination] will be issued in 2017.”

Why is EPA working so hastily to finalize this determination?

7.) It is difficult for EPA to meet all of its statutory deadlines. For example, with the Renewable Fuel Standard, EPA repeatedly missed deadlines in setting volume requirements. Similarly, in administering the National Ambient Air Quality Standards (NAAQS) the EPA is frequently late in issuing regulatory documents. Why is EPA so far ahead of schedule issuing the Proposed Determination?

8.) When are you planning on finalizing the Proposed Determination? Should we expect that before the new administration?

9.) The National ZEV Investment Plan under the VW settlement requires VW to spend $1.2 billion over ten years “to support increased use of zero emission vehicle technology.” How is this remedy at all related to VW’s illicit use of “defeat devices?” What happens to the ZEV program once VW fulfills its financial obligation? How will the fund be financed?

10.) The National ZEV Investment Plan was considered by Congress and rejected. As policy expert William Yeatman explains:

Having failed to persuade Congress, the administration now seeks to co-opt the judiciary’s injunctive and contempt powers in order to advance the President’s failed legislative agenda. The proposed partial consent decree would give EPA control of $1.2 billion in ZEV investments, which is four times what the administration unsuccessfully sought from Congress for effectively the same purpose in 2011.

Why is EPA trying to get VW to fund a program Congress rejected?