Capitol Hill Wrap-Up: Key Actions by Congress Impacting Western Energy & Resource Sectors -- March 23rd Edition
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Weekly Report on Key Actions by Congress Impacting Western Energy and Natural Resource Sectors
Welcome to the March 23, 2012 Western Business Roundtable's "Capitol Hill Wrap-Up Report," a weekly snap-shot report featuring short summaries regarding some key recent developments in Congress.
Both the House and Senate were in DC this week. That made for a hectic week for committees on both sides of the dome. Budget, energy and regulatory reform continued to dominate.
The Capitol Hill Wrap-Up is a supplement to the more detailed policy reports Roundtable members receive in our key issue areas: Air Quality, Water Quality, Energy, Public Lands, Mining, Environmental Compliance, Regulatory Reform.
REPORT DETAILS
March 23, 2012
Cross-Cutting
Transportation Reauthorization Showdown Continues
We reported last week that the Senate had finally completed action on a two-year surface transportation reauthorization package and sent it to the House for consideration. The House didn't take long to consider it. Early this week, the House voted to defeat that package, citing costs and add-ons, such as the dramatic bump in conservation funding. On Thursday, House Republicans introduced a short-term transportation extension that could prolong the reauthorization debate until at least June 30th. Expect that vote to occur next week.
Senate Energy Committee Considers Obama Nominees for EIA, DOI and FERC
The Senate Energy and Natural Resources Committee this week considered the Administration's nominations of several key energy positions:
- Adam Sieminski to be Administrator of the Energy Information Administration (EIA)
- Marcilynn Burke to be an Assistant Secretary of the Interior
- Anthony Clark and John Norris to be members of the Federal Energy Regulatory Commission. Clark is the former Chair of the North Dakota Public Utilities Commission
For details on the hearing, and to access an archived webcast of the hearing, see here.
Barrasso Releases Report: “Red Tape Making Americans Sick”
Yesterday, Senator John Barrasso (R-WY), Ranking Member of the Senate Subcommittee on Clean Air and Nuclear Safety, released a Subcommittee report entitled “Red Tape Making Americans Sick” which details the health impacts of high unemployment. The report focuses on several studies that show that extreme regulations from the Environmental Protection Agency (EPA) cost Americans their jobs and their health. The report came in advance of EPA Administrator Lisa Jackson’s testimony before the Senate Environment and Public Works Committee.
Senator Barrasso released the following statement about the report’s findings: “Obama Administration officials regularly try to justify their excessive red tape by citing misleading and incomplete health statistics. Meanwhile, they completely ignore how these exact same regulations destroy jobs and communities. When Americans lose their jobs, their health and the health of their children suffers. The EPA should immediately stop pushing expensive regulations that put Americans out of work and into the doctor’s office.”
Among the key findings from the report:
- Congressional testimony and scientific research reveals that unemployment from EPA regulations:
- Increases the likelihood of hospital visits, illnesses, and premature deaths in communities due to joblessness.
- Raises health care costs, raising questions about the claimed health savings of EPA’s regulations.
- Hurts children’s health and family well-being.
- EPA claims of health benefits from current and future Clean Air Act regulations are misleading and incomplete. The agency must adequately examine the negative health implications of unemployment into their cost-benefit analysis before making health benefit claims to the public and Congress.
Access the report here.
Air
Senate EPW Committee Pushes Rationale for Utility MACT -- Counterpoint to Inhofe-Led CRA Challenge
The Senate Environment and Public Works (EPW) Committee's Clean Air and Nuclear Safety Subcommittee held a hearing this week entitled "Oversight: Review of the Environmental Protection Agency's Mercury and Air Toxics Standards (MATS) for Power Plants." Gina McCarthy, Assistant Administrator for the Office of Air and Radiation at EPA was the federal witness. The other panel was dominated by entities supportive of the so-called "Utility MACT" rule. The hearing is viewed as a counter-point to the effort being spearheaded by EPW Ranking Republican Senator Jim Inhofe (R-OK) to bring a Congressional Review Act challenge to the rule.
For witness roster, testimony, Senators statements -- and to view an archived webcast of the hearing -- see here.
Roundtable Related Actions:
- The Roundtable has been a vocal opponent to the Utility MACT rule. For more information on our concerns, see our filed comments here.
- We are active in the coalition effort to support the Inhofe-led CRA challenge to the rule. See our statement of support here.
Budget / Economics
Budget issues took on additional sizzle this week. Rhetoric was ratcheted up from both parties, as the House Budget Committee moved the GOP FY13 budget and other committees continued oversight intended to compare and contrast the measure with the President's proposed budget.
House Budget Committee Unveils FY13 Budget -- Floor Action Next Week
The House Budget Committee ramped up the FY13 budget debate further with release/approval of their package. "The Path to Prosperity" budget, as the GOP is terming it, is expected on the House floor next week.
- See details on the package here.
- See Budget Committee vote details here.
House Oversight Committee Hosts Geithner and Bernanke for Discussion of Impacts from Global Debt Crisis
The House Oversight and Government Reform this week had Treasury Secretary Timothy Geithner and Federal Reserve Chair Ben Bernanke before it. The hearing focused on the future outlook of the U.S. economy and the impact that Europe’s sovereign debt crisis is having on the U.S. See an archived webcast of the discussion here.
House and Senate Committees Hold Budget-Related Hearings
Department of Agriculture
Senate Appropriations Financial Services and General Government Subcommittee
Topic: FY13 Budget for the U.S. Commodity Futures Trading Commission (CFTC)
Witness: Gary Gensler, Chairman of CFTC
For hearing details, see here.
House Appropriations Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Subcommittee
Topic: FY13 Budget for the Commodity Futures Trading Commission (CFTC)
Gary Gensler, Chairman of CFTC
For hearing details and testimony, see here.
Department of Commerce
Senate Appropriations Commerce, Justice and Science and Related Agencies Subcommittee
Topic: FY13 Budget for the Department of Commerce (DOC)
Witness: DOC Secretary John Bryson
For hearing details, see here.
House Appropriations Commerce, Justice, Science and Related Agencies Subcommittee
Topic: FY13 Budget for Department of Commerce (DOC)
Witness: DOC Secretary John Bryson
For hearing details, testimony, and to view archived webcast, see here.
House Appropriations Commerce, Justice, Science and Related Agencies Subcommittee
Topic: FY13 Budget for the National Oceanic and Atmospheric Administration (NOAA)
Witness: Jane Lubchenco, DOC Under Secretary for Oceans and NOAA Administrator
For hearing details and testimony, see here.
Department of Energy
House Appropriations Energy and Water Development and Related Agencies Subcommittee
Topic: FY13 Budget for the Department of Energy (DOE) Office of Science
Witness: Dr. Bill Brinkman, DOE Under Secretary for Science (Acting), Office of Science
For hearing details and testimony, see here.
House Appropriations Energy and Water Development and Related Agencies Subcommittee
Topic: FY13 Budget for the Department of Energy (DOE) Environmental Management & Health, Safety and Security
Witness: Dave Huizenga, DOE Assistant Secretary (Acting), Office of Environmental Management; Glenn Podonsky, DOE Chief Health, Safety, and Security Officer, Office of Health, Safety, and Security
For hearing details and testimony, see here.
Senate Appropriations Energy and Water Development Subcommittee
Topic: FY 13 Budget for National Nuclear Security Administration (NNSA)
Witness: Thomas D'Agostino, Administrator of NNSA
For hearing details, see here.
Department of Interior
House Appropriations Interior, Environment and Related Agencies Subcommittee
Topic: FY13 Budget for the National Park Service (NPS)
Witness: Jon Jarvis, NPS Director; Bruce Sheaffer, NPS Comptroller; Peggy O'Dell, NPS Deputy Director
For hearing details and testimony, see here.
House Appropriations Interior, Environment and Related Agencies Subcommittee
Topic: FY13 Budget for the Department of Interior (DOI)
Witnesses: The Subcommittee took two days of testimony from public witnesses on DOI and EPA funding
For hearing roster, testimony, see here and here.
House Natural Resources Energy and Mineral Resources Subcommittee
Topic: FY13 Budget for the Bureau of Land Management (BLM) and U.S. Forest Service's (USFS) Energy and Mineral Programs
Witnesses: Bob Abbey, BLM Director
For testimony, and to access an archived webcast of the hearing, see here.
House Natural Resources Water and Power Subcommittee
Topic: FY13 Budget for the Bureau of Reclamation (BurRec), U.S. Geological Survey (USGS) and Power Marketing Administrations (including BPA and WAPA)
Witnesses: Michael Connor, BurRec Commissioner; Bill Werkheiser, USGS Associate Director for Water; Stephen Wright, BPA Administrator; Timothy Meeks, WAPA Administrator; James McDonald, SPA Acting Administrator; Kenneth Legg, SEPA Administrator
For testimony, and to access an archived webcast of the hearing, see here.
Environmental Protection Agency
Senate Environment and Public Works Committee
Topic: FY13 Budget for the Environmental Protection Agency (EPA)
Witness: Lisa Jackson, EPA Administrator
For testimony, and to access an archived webcast of the hearing, see here.
House Appropriations Interior, Environment and Related Agencies Subcommittee
Topic: FY13 Budget for the Environmental Protection Agency (EPA)
Witnesses: The Subcommittee took two days of testimony from public witnesses on DOI and EPA funding
For hearing roster, testimony, see here and here.
Energy
House Government Oversight Committee Hosts DOE Secretary Chu -- DOE Stimulus Spending Scrutinized
The House Oversight & Government Reform Committee continued to probe the Department of Energy's (DOE) spending practices. This week, the Committee hosted DOE Secretary Steven Chu for an oversight hearing on the Department's stimulus spending. The event turned into a finals week debate, with each side grading the Administration's performance on energy policy and mitigation of gas prices.
For Secretary Chu's testimony, and to view an archived webcast of the hearing, see here.
House Natural Resources Committee Hits Hard on Consequences of Rising Gas Prices
The House Natural Resources Committee continues to push hard on the link between the Administration's domestic energy policies and rising gasoline prices. The Committee held an oversight hearing this week entitled "Harnessing American Resources to Create Jobs and Address Rising Gasoline Prices: Families and Cost-of-Life Impacts." Witnesses included a number of private sector advocacy groups.
For witness roster, testimony and to access an archived webcast of the hearing, see here.
House Homeland Security Committee Holds Hearing on Security Implications of U.S. Refinery Closures
The House Homeland Security Committee this week focused on the national security implications of petroleum refinery closures in the U.S. The Subcommittee on Counterterrorism and Intelligence held a field hearing in Alston, Pennsylvania. More than 30 U.S. refineries have closed in the last decade.
A variety of government and private sector witnesses discussed the "energy security and critical infrastructure" implications of our increasing dependence on foreign sources for processing of fuels. Federal witnesses were: Dr. Howard Gruenspecht, Acting Administrator, Energy Information Administration, U.S. Department of Energy and Brandon Wales, Director, Homeland Infrastructure Threat and Risk Analysis Center, U.S. Department of Homeland Security.
For a full witness roster and testimony, see here.
House Energy and Commerce Committee Focuses on Oil Sands Technology
On Tuesday, the House Energy and Commerce Subcommittee on Energy and Power continued its hearing series, “The American Energy Initiative.” This week, the Subcommittee's hearing was entitled "A Focus on the Future of Energy Technology with an Emphasis on Canadian Oil Sands." Oil sands crude is an unconventional resource because it cannot be produced by conventional drilling. The Subcommittee focused on the technological advances that have made extraction possible.
Witnesses included a variety of energy producers and technology experts.
- See the Majority Staff background memo here.
- For full roster, testimony and to access an archived webcast, see here.
Indian Affairs
House Natural Resources Indian Affairs Subcommittee Considers More Legislation
The House Natural Resources Indian and Alaska Native Affairs Subcommittee held a legislative hearing to take testimony on two pieces of pending legislation:
- (H.R. 4027): Clarifying authority granted under the Act entitled “An Act to define the exterior boundary of the Uintah and Ouray Indian Reservation in the State of Utah."
- (H.R. 4194): Amending the Alaska Native Claims Settlement Act to provide that Alexander Creek, Alaska, is and shall be recognized as an eligible Native village under that Act.
Tim Spisak, Deputy Assistant Director for Mineral and Realty Management at BLM testified, along with tribal and private witnesses. For full witness roster, testimony, and to access an archived webcast of the hearing, see here.
Mining
Senate Energy Committee Holds Legislative Hearing on Mining-Related Bills
This week, the Senate Energy and Natural Resources Subcommittee held legislative hearings on several mining/minerals-related bills:
- "Small Miner Waiver Act" (S. 303): Amending the Omnibus Budget Reconciliation Act of 1993 to require BLM to provide a claimant of a small miner waiver from claim maintenance fees with a period of 60 days after written receipt of one/more defects is provided to the claimant by registered mail to cure those defects or pay the claim maintenance fee.
- "Three Kids Mine Remediation and Reclamation Act" (S. 1492): Providing for conveyance of certain Federal land in Clark County, Nevada for the environmental remediation and reclamation of the Three Kids Mine Project Site.
For witness roster, testimony, and to view an archived webcast of the hearing, see here.
Public Lands
Senate Energy Committee Holds Legislative Hearing on Western Wilderness and Other Land Designation Bills
Regulatory Reform
Senate Avoids Conference Battle -- Passes House Version of STOCK Act
The Senate passed the House version of legislation intended to clarify the illegality of inside-trading by Congress and the Executive Branch. "The Stop Trading on Congressional Knowledge (STOCK) Act" (S. 2038) passed by a vote of 96-3. President Obama has already committed to sign the bill into laws.
White House Issues Guidance on Consideration of "Cumulative Impacts" of Regulations
The Obama Administration, which has been under Congressional scrutiny for how it carries out cost-benefit analyses as part of its regulatory processes, responded this week with the issuance of new guidance on the topic. The White House Office of Budget and Management (OBM), sent a memorandum to the heads of federal agencies outlining the details of new guidance on consideration of "cumulative impacts" of regulations.
"Consistent with Executive Order 13563, and to the extent permitted by law, agencies should take active steps to take account of the cumulative effects of new and existing rules and to identify opportunities to harmonize and streamline multiple rules. The goals of this effort should be to simplify requirements on the public and private sectors; to ensure against unjustified, redundant, or excessive requirements; and ultimately to increase the net benefits of regulations."
The guidance says that agencies should consider the following steps, "where appropriate and feasible, and to the extent permitted by law":
- Early consultation with, advance notice to, and close engagement with affected stakeholders to discuss potential interactions between rulemakings under consideration and existing regulations as well as other anticipated regulatory requirements;
- Early engagement with state, tribal, and local regulatory agencies to identify opportunities for harmonizing regulatory requirements, reducing administrative costs, avoiding unnecessary or inconsistent requirements, and otherwise improving regulatory outcomes;
- Use of Requests for Information and Advance Notices of Proposed Rulemaking to obtain public input on potentially overlapping rulemakings and on rulemakings that may have significant cumulative effects;
- Specific consideration of the cumulative effects of regulations on small businesses and start-ups;
- Identification of opportunities to increase the net benefits of regulations and to reduce administrative and other costs, while meeting policy goals and legal requirements;
- Careful consideration, in the analysis of costs and benefits, of the relationship between new regulations and regulations that are already in effect;
- Identification of opportunities to integrate and simplify the requirements of new and existing rules, so as to eliminate inconsistency and redundancy;
- Coordination of timing, content, and requirements of multiple rulemakings that are contemplated for a particular industry or sector, so as to increase net benefits; and
- Consideration of the interactive and cumulative effects of multiple regulations affecting individual sectors as part of agencies’ retrospective analysis of existing rules, consistent with Executive Order 13563.
"Where appropriate and feasible, agencies should consider cumulative effects and opportunities for regulatory harmonization as part of their analysis of particular rules, and should carefully assess the appropriate content and timing of rules in light of those effects and opportunities. Consideration of cumulative effects and of opportunities to reduce burdens and to increase net benefits should be part of the assessment of costs and benefits, consistent with the requirement of Executive Order 13563 that, to the extent permitted by law, agencies must "select, in choosing among alternative regulatory approaches, those approaches that maximize net benefits." Agencies should avoid unintentional burdens that could result from an exclusive focus on the most recent regulatory activities. As noted, the cumulative effects on small businesses and start-ups deserve particular attention."
This guidance is effective immediately. / See Sustein's memo here.
House Judiciary Committee Continues Focus on Regulatory Reform -- Approves Another Measure
The House Judiciary Committee approved another regulatory reform bill this week. "The Regulatory Freeze for Jobs Act of 2012" (H.R. 4078) would prohibit all rules that would have an economic impact of $100 million until the unemployment rate drops to six percent or lower. The bill includes exceptions for regulations to address an imminent threat to health or safety, enforce criminal laws, protect national security or implement an international trade agreement. A substitute amendment, adopted 13-12, also added a mechanism for the President to ask Congress for a waiver of the regulation ban.
For more mark-up details, see here.
House Judiciary Committee Examines the Obama Administration's Record on Regulations vs. Regulatory Reform
The House Judiciary Committee's Courts, Commercial and Administrative Law Subcommittee held an oversight hearing this week entitled "Federal Regulations and Regulatory Reform under the Obama Administration." Witnesses included: Cass Sustein,
Administrator, White House Office of Information and Regulatory Affairs and various academic experts.
For witness roster, testimony and to access an archived webcast of the hearing, see here.
Senate Governmental Affairs Committee Focuses on Obama Administration Regulatory Reform Efforts
On Wednesday, the Senate Committee on Homeland Security and Governmental Affairs held an oversight hearing "Retooling Government for the 21st Century: The President's Reorganization Plan and Reducing Duplication." Witnesses were: Daniel I. Werfel, Controller, Office of Federal Financial Management, Office of Management and Budget and Patricia A. Dalton, Chief Operating Offices, Government Accountability Office. For hearing details, see here.
House Government Oversight Committee Holds Hearing On the Freedom of Information Act
On Wednesday, the House Committee on Oversight & Government Reform held an oversight hearing on the Freedom of Information Act (FOIA). The hearing -- entitled "FOIA in the 21st Century: Using Technology to Improve Transparency in Government" --
featured witnesses from the National Archives, the Environmental Protection Agency, the Department of Justice, along with a representative from the watchdog group OMB Watch.
For witness roster, testimony and to access an archived webcast of the hearing, see here.
Water
House Natural Resources Committee Examines Recreational and Economic Impacts of National Ocean Policy
The House Natural Resources Fisheries, Wildlife, Oceans and Insular Affairs Subcommittee held an oversight hearing to look at the economic implications of the President's proposed National Ocean Policy. "Empty Hooks: The National Ocean Policy is the Latest Threat to Access for Recreational and Commercial Fishermen" featured recreational, commercial and charter fishing representatives.
For witness roster, testimony and to access an archived webcast of the hearing, see here.

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