Transparency and Honesty in Energy Regulations Act of 2025
- Bill Number
- S. 1584
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Environmental Protection
- Status
- Introduced
- Latest Action
- 2025-05-01: Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
- Last Updated
- 2025-05-22T17:41:00Z
AI-Generated Summary
Purpose of the Legislation
The "Transparency and Honesty in Energy Regulations Act of 2025" aims to prevent federal agencies from using estimates of the "social cost" of greenhouse gases—monetized projections of damages from emissions like carbon dioxide, methane, and nitrous oxide—in decision-making processes. It seeks to ensure that environmental analyses in regulations and permitting rely only on factors explicitly required by Congress and use methodologies deemed accurate and non-ideological.
Key Provisions
- Definitions (Section 2):
- Defines "Federal agency" as any executive branch entity subject to administrative law.
- Explains "social cost of carbon," "social cost of methane," "social cost of nitrous oxide," and "social cost of greenhouse gases" as dollar-value estimates of harms from incremental emissions, referencing specific government documents from 2010–2024 (e.g., Interagency Working Group reports and EPA analyses) or similar successors.
- Prohibition on Use (Section 3):
- Bans agency heads from factoring these social cost estimates into cost-benefit analyses (under laws or executive orders like 12866 and 13563 on regulatory review), rulemakings, guidance documents, other actions, or as justifications for them.
- Reporting Requirement (Section 4):
- Within 120 days of enactment, each agency must report to congressional committees (e.g., Senate Environment and Public Works) on all proposed/final rules, guidance, and actions since January 2009 that used these social cost estimates, including in cost-benefit reviews.
- Prioritizing Accuracy in Analyses (Section 5):
- In permitting and regulatory processes, agencies must limit environmental considerations to those explicitly mandated by statutes; other factors are prohibited.
- Agencies must use the "most robust" assessment methods, avoiding arbitrary or ideologically driven ones.
- For valuing changes in greenhouse gas emissions, agencies must follow the 2003 Office of Management and Budget (OMB) Circular A-4 guidance (on economic analysis, including domestic vs. international effects and discount rates—rates used to calculate present value of future costs/benefits).
- Agencies must update rules, policies, or actions as needed to align with this OMB guidance, where legally allowed.
Significant Changes to Existing Law
- Overrides or restricts the application of social cost estimates developed in technical documents under past administrations (e.g., Obama and Biden eras), which have been used in environmental impact assessments since around 2010.
- Limits executive discretion in regulatory reviews by tying analyses strictly to congressional statutes and pre-2021 OMB guidelines, potentially reversing reliance on updated interagency models that incorporate global climate damages.
- Introduces mandatory reporting on historical uses, creating a record for potential future oversight or revisions.
Potential Impacts
- On Government Agencies: Could simplify regulatory processes by removing a tool for quantifying climate benefits, reducing administrative burden but limiting comprehensive environmental evaluations; agencies like the EPA may need to revise ongoing rules (e.g., on power plants or air quality).
- On Citizens: Might lead to fewer restrictions on emissions from industries like fossil fuels, potentially lowering energy costs but increasing health/environmental risks from pollution; affects communities near industrial sites through changes in air and water standards.
- On International Relations: Could signal reduced U.S. emphasis on global climate costs, complicating participation in international agreements (e.g., Paris Accord) by downplaying long-term damages; may strain ties with allies focused on climate action.
- Overall, shifts focus to immediate, congressionally mandated factors, possibly slowing climate-related regulations.
Main Stakeholders Affected
- Federal Agencies: Primarily EPA, Department of Energy, and others involved in environmental permitting and rulemakings, who must comply with prohibitions and reporting.
- Energy and Industry Sectors: Fossil fuel producers (e.g., coal, oil, gas companies) benefit from eased regulations; renewable energy firms may face indirect competition.
- Environmental and Public Health Groups: Likely oppose, as it curbs tools for justifying emission controls; advocacy organizations may challenge implementations.
- Congress and Taxpayers: Committees gain oversight via reports; broader public affected through policy shifts on energy affordability vs. environmental protection.
- State Governments: Indirectly impacted, as federal rules influence state-level enforcement of air quality and permitting.
Notable Legal, Constitutional, or Political Implications
- Legal: May face challenges under the Administrative Procedure Act for altering established analytical practices without full rulemaking; reinforces statutory limits on agency authority (e.g., Chevron deference debates, where courts defer to agency interpretations of ambiguous laws).
- Constitutional: Touches separation of powers by curbing executive branch use of scientific estimates, emphasizing congressional intent over administrative innovation.
- Political: Reflects debates on climate policy, potentially polarizing along partisan lines—favoring deregulation vs. environmental protection; could influence future budgets or executive orders on energy. No direct constitutional violations noted, but invites litigation on regulatory consistency.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2025-05-01: Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
- 2025-05-01: Introduced in Senate
Bill Versions
- Transparency and Honesty in Energy Regulations Act of 2025 — issued 2025-05-01 — PDF (12 pages)