II 

115TH CONGRESS 

1ST SESSION S. 1512 

To prohibit the Secretary of Energy, the Administrator of the Environmental 

Protection Agency, the Secretary of the Interior, the Secretary of Transportation, and the Chair of the Council on Environmental Quality from 

considering, in taking any action, the social cost of carbon, the social 

cost of methane, the social cost of nitrous oxide, or the social cost 

of any other greenhouse gas, unless compliant with Office of Management 

and Budget guidance, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 29, 2017 

Mr. LANKFORD (for himself, Mr. CORNYN, Mr. INHOFE, Mr. BARRASSO, and 

Mr. BLUNT) introduced the following bill; which was read twice and referred to the Committee on Environment and Public Works 

A BILL 

To prohibit the Secretary of Energy, the Administrator of 

the Environmental Protection Agency, the Secretary of 

the Interior, the Secretary of Transportation, and the 

Chair of the Council on Environmental Quality from 

considering, in taking any action, the social cost of carbon, the social cost of methane, the social cost of nitrous 

oxide, or the social cost of any other greenhouse gas, 

unless compliant with Office of Management and Budget 

guidance, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Transparency and 

3 Honesty in Energy Regulations Act of 2017’’. 

4 SEC. 2. FINDINGS. 

5 Congress finds that— 

6 (1) as a tool to justify Federal actions by the 

7 Secretary of Energy, the Administrator of the Envi8 ronmental Protection Agency, the Secretary of the 

9 Interior, the Secretary of Transportation, and the 

10 Chair of the Council on Environmental Quality to 

11 address greenhouse gas emissions, including the reg12 ulation or prohibition of the exploration, mining, 

13 production, and use of coal and other fossil fuels as 

14 energy sources, the social cost of greenhouse gases, 

15 specifically the social cost of carbon, the social cost 

16 of methane, and the social cost of nitrous oxide, rep17 resents the hypothetical cost of 1 incremental ton of 

18 carbon dioxide, methane, or nitrous oxide emissions 

19 in a given year; 

20 (2) the document of the Office of Management 

21 and Budget entitled ‘‘Circular A–4’’ and dated Sep22 tember 17, 2003— 

23 (A) guides Federal agencies on the devel24 opment of regulatory impact analysis required 

25 under Executive Order 12866 (5 U.S.C. 601 


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1 note; relating to regulatory planning and re2 view) and other authorities; and 

3 (B) instructs Federal agencies to include 

4 discount rates of 3 and 7 percent and evaluate 

5 the costs and benefits of the regulatory action 

6 that accrue to citizens and residents of the 

7 United States; 

8 (3) first developed in 2009 by an interagency 

9 working group that included the Department of En10 ergy, the Environmental Protection Agency, the De11 partment of Transportation, and the Council on En12 vironmental Quality, the estimates for the social cost 

13 of carbon and the subsequently developed social cost 

14 of methane and social cost of nitrous oxide fail to 

15 comply with the 3- and 7-percent discount rates pre16 scribed by the document of the Office of Manage17 ment and Budget entitled ‘‘Circular A–4’’ and dated 

18 September 17, 2003; 

19 (4) while the document of the Office of Man20 agement and Budget entitled ‘‘Circular A–4’’ and 

21 dated September 17, 2003, specifies that, in car22 rying out an evaluation of the global effects of a 

23 rule, regulation, or action, the evaluation shall be re24 ported separately from domestic costs and benefits 

25 of that rule, regulation, or action, the social cost of 


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1 carbon, the social cost of methane, and the social 

2 cost of nitrous oxide instead calculates the global 

3 benefits in lieu of, not in addition to, the domestic 

4 costs of a rule, regulation, or action; 

5 (5) the use of the estimates of the social cost 

6 of greenhouse gases, including the estimates for the 

7 social cost of carbon, the social cost of methane, and 

8 the social cost of nitrous oxide, in the rulemakings 

9 and other actions of the Department of Energy, the 

10 Environmental Protection Agency, the Department 

11 of the Interior, the Department of Transportation, 

12 and the Council on Environmental Quality was with13 out— 

14 (A) an adequate opportunity for public no15 tice and comment; and 

16 (B) rigorous scientific peer review; 

17 (6) the Environmental Protection Agency relied 

18 on— 

19 (A) the interagency working group esti20 mate of the social cost of methane, without ap21 propriate peer review or opportunity for public 

22 notice and comment, in attempting to justify 

23 the costs and benefits of— 

24 (i) the proposed rule entitled ‘‘Oil and 

25 Natural Gas Sector: Emission Standards 


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1 for New and Modified Sources’’ (80 Fed. 

2 Reg. 56593 (September 18, 2015)); and 

3 (ii) the final rule entitled ‘‘Oil and 

4 Natural Gas Sector: Emission Standards 

5 for New, Reconstructed, and Modified 

6 Sources’’ (81 Fed. Reg. 35824 (June 3, 

7 2016)) and the accompanying regulatory 

8 impact analysis entitled ‘‘Regulatory Im9 pact Analysis of the Final Oil and Natural 

10 Gas Sector: Emission Standards for New, 

11 Reconstructed, and Modified Sources’’, 

12 prepared by the Environmental Protection 

13 Agency, Office of Air and Radiation, in 

14 May 2016 and identified by docket ID 

15 number EPA–HQ–OAR–2010–0505–7630; 

16 and 

17 (B) the interagency working group esti18 mate of the social cost of carbon, without ap19 propriate peer review or opportunity for public 

20 notice and comment, in attempting to justify 

21 the costs and benefits of— 

22 (i) the final rule entitled ‘‘Standards 

23 of Performance for Greenhouse Gas Emis24 sions From New, Modified, and Recon25 structed Stationary Sources: Electric UtilVerDate Sep 11 2014 02:18 Jul 12, 2017 Jkt 069200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1512.IS S1512

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1 ity Generating Units’’ (80 Fed. Reg. 

2 64510 (October 23, 2015)) and the accom3 panying regulatory impact analysis entitled 

4 ‘‘Regulatory Impact Analysis for the Final 

5 Standards of Performance for Greenhouse 

6 Gas Emissions from New, Modified, and 

7 Reconstructed Stationary Sources: Electric 

8 Utility Generating Units’’, prepared by the 

9 Environmental Protection Agency, Office 

10 of Air and Radiation, in October 2015 and 

11 identified by docket ID number EPA–HQ– 

12 OAR–2013–0495; and 

13 (ii) the final rule entitled ‘‘Carbon 

14 Pollution Emission Guidelines for Existing 

15 Stationary Sources: Electric Utility Gener16 ating Units’’ (80 Fed. Reg. 64662 (Octo17 ber 23, 2015)) and the accompanying reg18 ulatory impact analysis entitled ‘‘Regu19 latory Impact Analysis for the Clean Power 

20 Plan Final Rule’’, prepared by the Envi21 ronmental Protection Agency, Office of Air 

22 and Radiation, in October 2015 and identi23 fied by docket ID number EPA–HQ– 

24 OAR–2013–0602; 


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1 (7) the Department of the Interior used the so2 cial cost of methane estimate to justify the costs and 

3 benefits of the final rule entitled ‘‘Waste Prevention, 

4 Production Subject to Royalties, and Resource Con5 servation’’ (81 Fed. Reg. 83008 (November 18, 

6 2016)); 

7 (8) the Council on Environmental Quality 

8 issued final guidance on August 1, 2016, that, with 

9 respect to a monetary cost-benefit analysis for an 

10 evaluation of a proposed Federal action under the 

11 National Environmental Policy Act of 1969 (42 

12 U.S.C. 4321 et seq.), directed the head of each Fed13 eral agency to include the social cost of carbon in 

14 any consideration of the effect of greenhouse gas 

15 emissions; 

16 (9) continued use of the social cost of green17 house gases, including the social cost of carbon, the 

18 social cost of methane, and the social cost of nitrous 

19 oxide by the Department of Energy, the Environ20 mental Protection Agency, the Department of the 

21 Interior, the Department of Transportation, and the 

22 Council on Environmental Quality ignores sound 

23 science; 

24 (10) Executive Order 13777 (82 Fed. Reg. 

25 12285 (March 1, 2017)) states that the policy of the 


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1 United States is to alleviate any unnecessary regu2 latory burden on the people of the United States; 

3 and 

4 (11) Executive Order 13783 (82 Fed. Reg. 

5 16093 (March 31, 2017))— 

6 (A) disbands the interagency working 

7 group referred to in paragraph (3); 

8 (B) withdraws the social cost of carbon, 

9 the social cost of methane, and the social cost 

10 of nitrous oxide; and 

11 (C) directs Federal agencies, in monetizing 

12 the value of changes in greenhouse gas emis13 sions as a result of a regulation, to follow the 

14 document of the Office of Management and 

15 Budget entitled ‘‘Circular A–4’’ and dated Sep16 tember 17, 2003, by using the discount rates 

17 specified in that document and evaluating only 

18 the domestic effects of the regulation. 

19 SEC. 3. DEFINITIONS. 

20 In this Act: 

21 (1) ADMINISTRATOR.—The term ‘‘Adminis22 trator’’ means the Administrator of the Environ23 mental Protection Agency. 

24 (2) SOCIAL COST OF CARBON.—The term ‘‘so25 cial cost of carbon’’ means— 


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1 (A) the estimate of the social cost of car2 bon described in— 

3 (i) the document entitled ‘‘Technical 

4 Support Document: Social Cost of Carbon 

5 for Regulatory Impact Analysis Under Ex6 ecutive Order 12866’’, published by the 

7 Interagency Working Group on Social Cost 

8 of Carbon, United States Government, in 

9 February 2010; or 

10 (ii)(I) the document entitled ‘‘Tech11 nical Support Document: Technical Update 

12 of the Social Cost of Carbon for Regu13 latory Impact Analysis Under Executive 

14 Order 12866’’, published by the Inter15 agency Working Group on Social Cost of 

16 Carbon, United States Government, in 

17 May 2013 and revised in November 2013 

18 and July 2015, and published and revised 

19 by the Interagency Working Group on the 

20 Social Cost of Greenhouse Gases, United 

21 States Government, in August 2016; or 

22 (II) any successor or substantially re23 lated document; and 

24 (B) any other estimate of the monetized 

25 damages associated with an incremental inVerDate Sep 11 2014 02:18 Jul 12, 2017 Jkt 069200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S1512.IS S1512

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1 crease in carbon dioxide emissions in a given 

2 year. 

3 (3) SOCIAL COST OF GREENHOUSE GAS.—The 

4 term ‘‘social cost of greenhouse gas’’ means— 

5 (A) the estimate of the social cost of any 

6 greenhouse gas that is described in any suc7 cessor document to— 

8 (i) the document entitled ‘‘Technical 

9 Support Document: Social Cost of Carbon 

10 for Regulatory Impact Analysis Under Ex11 ecutive Order 12866’’, published by the 

12 Interagency Working Group on Social Cost 

13 of Carbon, United States Government, in 

14 February 2010; 

15 (ii) the document entitled ‘‘Technical 

16 Support Document: Technical Update of 

17 the Social Cost of Carbon for Regulatory 

18 Impact Analysis Under Executive Order 

19 12866’’, published by the Interagency 

20 Working Group on Social Cost of Carbon, 

21 United States Government, in May 2013 

22 and revised in November 2013 and July 

23 2015, and published and revised by the 

24 Interagency Working Group on the Social 


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1 Cost of Greenhouse Gases, United States 

2 Government, in August 2016; or 

3 (iii) the document entitled ‘‘Adden4 dum to Technical Support Document on 

5 Social Cost of Carbon for Regulatory Im6 pact Analysis under Executive Order 

7 12866: Application of the Methodology to 

8 Estimate the Social Cost of Methane and 

9 the Social Cost of Nitrous Oxide’’, pub10 lished by the Interagency Working Group 

11 on Social Cost of Greenhouse Gases, 

12 United States Government, in August 

13 2016; and 

14 (B) any other estimate of the monetized 

15 damages associated with an incremental in16 crease in greenhouse gas emissions in a given 

17 year. 

18 (4) SOCIAL COST OF METHANE.—The term ‘‘so19 cial cost of methane’’ means— 

20 (A) the estimate of the social cost of meth21 ane described in— 

22 (i) the proposed rule entitled ‘‘Oil and 

23 Natural Gas Sector: Emission Standards 

24 for New and Modified Sources’’ (80 Fed. 

25 Reg. 56593 (September 18, 2015)); 


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1 (ii) the final rule entitled ‘‘Oil and 

2 Natural Gas Sector: Emission Standards 

3 for New, Reconstructed, and Modified 

4 Sources’’ (81 Fed. Reg. 35824 (June 3, 

5 2016)); 

6 (iii) the regulatory impact analysis en7 titled ‘‘Regulatory Impact Analysis of the 

8 Final Oil and Natural Gas Sector: Emis9 sion Standards for New, Reconstructed, 

10 and Modified Sources’’, prepared by the 

11 Environmental Protection Agency, Office 

12 of Air and Radiation, in May 2016 and 

13 identified by docket ID number EPA–HQ– 

14 OAR–2010–0505–7630; or 

15 (iv)(I) the document entitled ‘‘Adden16 dum to Technical Support Document on 

17 Social Cost of Carbon for Regulatory Im18 pact Analysis under Executive Order 

19 12866: Application of the Methodology to 

20 Estimate the Social Cost of Methane and 

21 the Social Cost of Nitrous Oxide’’, pub22 lished by the Interagency Working Group 

23 on Social Cost of Greenhouse Gases, 

24 United States Government, in August 

25 2016; or 


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1 (II) any successor or substantially re2 lated document; and 

3 (B) any other estimate of the monetized 

4 damages associated with an incremental in5 crease in methane emissions in a given year. 

6 (5) SOCIAL COST OF NITROUS OXIDE.—The 

7 term ‘‘social cost of nitrous oxide’’ means— 

8 (A) the estimate of the social cost of ni9 trous oxide described in— 

10 (i) the document entitled ‘‘Addendum 

11 to Technical Support Document on Social 

12 Cost of Carbon for Regulatory Impact 

13 Analysis under Executive Order 12866: 

14 Application of the Methodology to Esti15 mate the Social Cost of Methane and the 

16 Social Cost of Nitrous Oxide’’, published 

17 by the Interagency Working Group on So18 cial Cost of Greenhouse Gases, United 

19 States Government, in August 2016; or 

20 (ii) any other successor or substan21 tially related document; and 

22 (B) any other estimate of the monetized 

23 damages associated with an incremental in24 crease in nitrous oxide emissions in a given 

25 year. 


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1 SEC. 4. PROHIBITION ON CONSIDERING THE SOCIAL COST 

2 OF GREENHOUSE GAS, INCLUDING THE SO3 CIAL COST OF CARBON, THE SOCIAL COST OF 

4 METHANE, AND THE SOCIAL COST OF NI5 TROUS OXIDE. 

6 (a) IN GENERAL.—The Secretary of Energy, under 

7 any authority, the Administrator, under the Clean Air Act 

8 (42 U.S.C. 7401 et seq.), the Secretary of the Interior, 

9 under any authority, the Secretary of Transportation, 

10 under any authority, and the Chair of the Council on En11 vironmental Quality, under the National Environmental 

12 Policy Act of 1969 (42 U.S.C. 4321 et seq.), may not con13 sider the social cost of carbon, social cost of methane, so14 cial cost of nitrous oxide, or social cost of greenhouse 

15 gas— 

16 (1) as part of any cost-benefit analysis required 

17 under— 

18 (A) any law; 

19 (B) Executive Order 12866 (5 U.S.C. 601 

20 note; relating to regulatory planning and re21 view); or 

22 (C) Executive Order 13563 (5 U.S.C. 601 

23 note; relating to improving regulation and regu24 latory review); 

25 (2) in any rulemaking; 

26 (3) in the issuance of any guidance; 


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1 (4) in taking any other agency action; or 

2 (5) as a justification for any rulemaking, guid3 ance document, or agency action. 

4 (b) EXCEPTION.—The Secretary of Energy, the Ad5 ministrator, the Secretary of the Interior, the Secretary 

6 of Transportation, and the Chair of the Council on Envi7 ronmental Quality may consider the social cost of carbon, 

8 social cost of methane, social cost of nitrous oxide, or so9 cial cost of greenhouse gas in carrying out an activity de10 scribed in subsection (a) only if, after the date of enact11 ment of this Act— 

12 (1) a Federal law is enacted that explicitly au13 thorizes the consideration; or 

14 (2) the Secretary of Energy, the Administrator, 

15 the Secretary of the Interior, the Secretary of 

16 Transportation, or the Chair of the Council on Envi17 ronmental Quality uses an estimate for the social 

18 cost of carbon, social cost of methane, social cost of 

19 nitrous oxide, or social cost of greenhouse gas 

20 that— 

21 (A) complies with the requirements of the 

22 document of the Office of Management and 

23 Budget entitled ‘‘Circular A–4’’ and dated Sep24 tember 17, 2003; 


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1 (B) uses only the discount rates specified 

2 in that document; 

3 (C) considers only the domestic costs and 

4 benefits of the activity; and 

5 (D) has been reviewed by the Director of 

6 the Office of Management and Budget for— 

7 (i) compliance with the document re8 ferred to in subparagraph (A); and 

9 (ii) consistency across Federal agen10 cies. 

11 SEC. 5. REPORT OF THE ADMINISTRATOR. 

12 Not later than 120 days after the date of enactment 

13 of this Act, the Administrator, in coordination and con14 sultation with the Secretary of Energy, the Secretary of 

15 the Interior, the Secretary of Transportation, and the 

16 Chair of the Council on Environmental Quality, shall sub17 mit to the Committees on Environment and Public Works 

18 and Energy and Natural Resources of the Senate and the 

19 Committees on Energy and Commerce and Natural Re20 sources of the House of Representatives a report describ21 ing the number of proposed and final rulemakings, guid22 ance documents, and agency actions that, since January 

23 2009, have used the social cost of carbon, the social cost 

24 of methane, or the social cost of nitrous oxide, including 

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1 ane, or the social cost of nitrous oxide as part of any cost2 benefit analysis required under Executive Order 12866 (5 

3 U.S.C. 601 note; relating to regulatory planning and re4 view) or other relevant authority. 

Æ 


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