H.R. 3845: To amend the Endangered Species Act of 1973 to expand the exemption process under section 7 of that Act with respect to national security and significant adverse national or regional economic impacts.

This bill proposes changes to the Endangered Species Act of 1973, specifically focusing on the section that allows federal agencies and applicants to request exemptions. Here’s a breakdown of key elements:

Expansion of Exemption Process

The bill expands the existing exemption process outlined in Section 7 of the Endangered Species Act, allowing for exemptions to be granted when:

• The federal action would violate existing protections for endangered species.
• Any modifications or alternatives needed to comply with those protections would:
• Impair national security, or
• Result in significant adverse national or regional economic impacts.

Application for Exemption

Under the proposed amendments, an exemption applicant includes federal agencies or state governors. The Secretary of the Department responsible will review applications, taking particular consideration of:

• Consultation with appropriate parties about the potential impacts.
• Any necessary reports and analysis from national security and economic authorities.

Review Process

The Secretary will have the initial responsibility to evaluate exemption requests based on the considerations mentioned above. If an exemption is granted or denied, there will be a formal review by a designated committee.

Consultation with National Security and Economic Authorities

The bill mandates consultations with the National Security Council and the National Economic Council to assess potential impacts before making final decisions on requested exemptions. This ensures that both national security and economic considerations are addressed in determining impacts.

Criteria for Exemptions

Exemptions can be granted if it can be shown that there are no other reasonable alternatives available that would not interfere with national security or have substantial negative economic effects.

Changes to Existing Language

The bill includes specific adjustments to the language and structure of the existing law, primarily aimed at clarifying the criteria and processes for granting exemptions in relation to national security and economic impacts.

Relevant Companies

• BA (Boeing): As a major defense contractor, any changes in environmental regulations could impact their operations.
• RTX (Raytheon Technologies): Could be affected by exemptions that may facilitate defense-related projects impacting endangered species habitats.
• GS (Goldman Sachs): If economic impacts are considered, financial institutions like GS could be involved in funding projects that seek exemptions.