H.R. 3147: Transparency and Honesty in Energy Regulations Act

This bill, titled the Transparency and Honesty in Energy Regulations Act, proposes to restrict federal agencies from considering the so-called "social cost" of certain greenhouse gases in their regulatory decisions. Specifically, it aims to prohibit agencies from factoring in the social cost of carbon, methane, nitrous oxide, and other greenhouse gases when conducting cost-benefit analyses for rulemaking, guidance documents, or any agency actions.

Key Provisions

• Definition of Social Costs: The bill defines the social cost of carbon, methane, and nitrous oxide, referencing specific technical documents that quantify these costs in terms of their monetized damages to society related to increased emissions.
• Prohibition on Consideration: Federal agencies are barred from using the social costs in:
  • Cost-benefit or cost-effectiveness analyses under any law.
  • Rulemaking processes.
  • The issuance of any guidance.
  • Any form of agency action.
  • As a justification for any regulations, guidance, or actions taken.
• Reporting Requirement: Within 120 days of the enactment of this Act, the heads of federal agencies must submit reports to Congress detailing past usage of the social costs in rulemakings and guidance since January 2009. The reports should cover how often these costs were used in establishing regulatory impacts under relevant executive orders.

Impact of the Bill

The implementation of this bill would significantly reshape how federal agencies approach regulatory evaluations regarding greenhouse gas emissions. By prohibiting the consideration of these social costs, the bill may encourage more favorable conditions for activities that produce higher emissions without the corresponding assessment of potential societal damages.

Relevant Companies

• PCG: Pacific Gas and Electric may experience changes in regulatory compliance costs associated with greenhouse gas emissions.
• DUK: Duke Energy could see changes regarding their operating costs and compliance strategies concerning emissions regulations.
• EXC: Exelon Corporation's approaches to environmental regulations may shift due to altered assessments of greenhouse gases' social costs.