Bills
| 3.23.22

Does America Need to Ease Regulations to Produce More Domestic Energy? (S. 791)

Do you support or oppose this bill?

What is S. 791?

(Updated July 28, 2020)

This bill aims to comprehensively reform the permitting and licensing processes in the energy sector to boost domestic production of all types of energy.

Exports of crude oil, natural gas, and coal would be opened up to countries that the U.S. doesn't have sanctions on. Liquefied Natural Gas (LNG) export facilities would have to speed up the permitting process to cut down on existing application backlogs. Coal exports facilities would face a narrower environmental review process than what they currently face to help accelerate that process.

Energy development on federal lands would be expanded by giving states the authority to lease, permit, and regulate energy resources on federal lands — including oil, gas, wind, and solar. If states decide not to self-regulate these developments, the developments would be covered by accelerated federal leasing and permitting practices requiring a decision within 30 days. If a decision isn't made within 60 days, applications would be considered approved.

All revenues generated by energy exploration and extraction on federal lands that isn’t allocated to the states would be used exclusively to reduce the national debt.

All greenhouse gas regulations would be repealed. Air pollutants would be redefined to exclude carbon dioxide, water vapor, methane, nitrous oxide, hydrofluorocarbons, or sulfur hexafluoride. All proposed EPA rules regarding greenhouse gases and carbon pollution would be invalidated.

This legislation would make clear that the following Acts of Congress do not authorize or require the regulation of climate change or global warming:

  • Clean Air Act;

  • Federal Water Pollution Control Act;

  • National Environmental Policy Act of 1969 (NEPA);

  • Endangered Species Act of 1973;

  • Solid Waste Disposal Act.

Regulations that cover hydraulic fracturing (aka fracking) would be left to states to create and enforce, meaning that the federal government will stay out of the way. For Native American tribes, the EPA could only issue regulations fracking regulations if the tribe gives its express consent.

Construction on the Keystone XL pipeline could begin immediately, as this legislation would approve it and ensure that a presidential permit is not required for the project to begin.

Argument in favor

Energy independence is now an attainable goal for the U.S., and this bill would reduce regulations in order to provide the conditions necessary for the private sector to develop more resources and grow the economy while helping our allies.

Argument opposed

This bill eviscerates climate change regulations and environmental protections that have been on the books for decades. It opens up protected public lands for energy development, and diminishes the ability of regulators to assess energy projects.

Impact

Americans who consume energy, U.S. natural resources, disrupted ecosystems and the flora and fauna that inhabit them, energy development companies, states and Indian tribes, the EPA, Congress, the President.

Cost of S. 791

A CBO cost estimate is unavailable.

Additional Info

In-Depth: Sponsoring Sen. Ted Cruz (R-TX) posed the following question when introducing his legislation:

“Will we lead the world into a new generation of American prosperity led by the great American energy renaissance we’re experiencing, or will we instead shut off our borders, erect walls, and allow our friends and allies to be dependent on tyrants like Vladimir Putin or Nicolas Maduro?”

This bill has elicited polarizing opinions — some praising it for its potential to generate jobs and prosperity, with others condemning it for “trying to gut the Clean Air Act and U.S. climate policy” and “dramatically increasing greenhouse gas emissions.”


Similar versions of this legislation were introduced in both the House and the Senate during the 113th Congress, but neither bill made it out of committee to receive a vote.

In order to increase the capacity of U.S. refineries, the permitting process for upgrading existing facilities and building new ones would be accelerated by setting deadlines for the approval or disapproval of permits. If a state or Indian tribe requests it, the EPA would be required to enter into a streamlined refinery permitting process.


The Coastal Plain of Alaska, which comprises 1.5 million of the Arctic National Wildlife Refuge's (ANWR) 19 million acres, and expanded portions of the Outer Continental Shelf (OCS) would be opened up for energy development. For offshore energy exploration, drilling permits must be approved or disapproved within 20 days of an application’s submission.


EPA regulations that would impact coal and electric power plants would be halted.


The Renewable Fuel Standard (RFS) -- which requires an increasing amount of biofuel to be included in gasoline and diesel -- would be phased out over five years and repealed.


EPA regulations that will have a negative impact on jobs would be required to be approved by Congress and signed by the President, thus subjecting them to the democratic process.


Of Note: According to recent projections, the U.S. will produce enough energy to be independent from imports in the 2020s, and should become a net exporter of energy by 2019. In 2015 U.S. production of oil will hit an all-time high.


The growth of the U.S. energy industry has been uneven, as between 2008 and 2012 there were more than 90,000 jobs added in natural gas, nearly 80,000 in wind and solar, while coal has lost about 50,000 jobs.


Expanded drilling in the Arctic National Wildlife Refuge (ANWR) is supported by 78 percent of the Alaskan public, while more offshore energy exploration has the backing of a majority of Americans according to Pew Research Center.


Media:

Summary by Eric Revell
(Photo Credit: Flickr user samhowzit)