II 

114TH CONGRESS 

2D SESSION S. 3508 

To prohibit the Secretary of Energy and the Administrator of the Environmental Protection Agency from considering 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 in taking any action, and for 

other purposes. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 6, 2016 

Mr. LANKFORD 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 and the Administrator 

of the Environmental Protection Agency from considering 

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 in taking any action, 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, 

3 SECTION 1. SHORT TITLE. 

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

5 Honesty in Energy Regulations Act of 2016’’. 


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1 SEC. 2. FINDINGS. 

2 Congress finds that— 

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

4 Secretary of Energy and the Administrator of the 

5 Environmental Protection Agency to address green6 house gas emissions, including the regulation or pro7 hibition of the exploration, mining, production, and 

8 use of coal and other fossil fuels as energy sources, 

9 the social cost of greenhouse gases, specifically the 

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

11 represents the hypothetical cost of 1 incremental ton 

12 of carbon dioxide or methane emissions in a given 

13 year; 

14 (2) the document of the Office of Management 

15 and Budget entitled ‘‘Circular A–4’’ and dated Sep16 tember 17, 2003— 

17 (A) guides Federal agencies on the devel18 opment of regulatory impact analysis required 

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

20 note; relating to regulatory planning and re21 view) and other authorities; and 

22 (B) instructs Federal agencies to include 

23 discount rates of 3 and 7 percent and evaluate 

24 the costs and benefits of the regulatory action 

25 that accrue to citizens and residents of the 

26 United States; 


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1 (3) the social cost of carbon estimates were first 

2 developed in 2009 by an interagency working group 

3 that included the Secretary of Energy and the Ad4 ministrator of the Environmental Protection Agency 

5 and fail to comply with the 3- and 7-percent dis6 count rates prescribed by the document of the Office 

7 of Management and Budget entitled ‘‘Circular A–4’’ 

8 and dated September 17, 2003; 

9 (4) while the document of the Office of Man10 agement and Budget entitled ‘‘Circular A–4’’ and 

11 dated September 17, 2003, specifies that, in car12 rying out an evaluation of the global effects of a 

13 rule, regulation, or action, the evaluation shall be re14 ported separately from domestic costs and benefits 

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

16 carbon instead calculates the global benefits in lieu 

17 of, not in addition to, the domestic effects of a rule, 

18 regulation, or action; 

19 (5) the use of the social cost of carbon esti20 mates in rulemakings by the Secretary of Energy 

21 and the Administrator of the Environmental Protec22 tion Agency without an opportunity for public notice 

23 and comment violates scientific peer review require24 ments and the commitment of the President to 

25 transparent and open government, as outlined in the 


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1 memorandum of the President entitled ‘‘Trans2 parency and Open Government: Memorandum for 

3 the Heads of Executive Departments and Agencies’’ 

4 and dated January 21, 2009; 

5 (6) in July 2015, as part of a revision of the 

6 social cost of carbon in response to over 150 sub7 stantive comments and in acknowledgment of the 

8 faulty process by which the social cost of carbon es9 timates were developed, the Director of the Office of 

10 Management and Budget requested that the Na11 tional Academies of Science, Engineering, and Medi12 cine review and make recommendations for the im13 provement of the social cost of carbon estimates; 

14 (7) shortly after the commencement of the re15 view referred to in paragraph (6), the Administrator 

16 of the Environmental Protection Agency used the so17 cial cost of methane estimate developed by the Ad18 ministrator of the Environmental Protection Agency, 

19 without appropriate peer review or opportunity for 

20 public notice and comment, to justify the costs and 

21 benefits of— 

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

23 Natural Gas Sector: Emission Standards for 

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

25 56593 (September 18, 2015)); and 


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1 (B) the final rule entitled ‘‘Oil and Natural 

2 Gas Sector: Emission Standards for New, Re3 constructed, and Modified Sources’’ (81 Fed. 

4 Reg. 35824 (June 3, 2016)) and the accom5 panying regulatory impact analysis entitled 

6 ‘‘Regulatory Impact Analysis of the Final Oil 

7 and Natural Gas Sector: Emission Standards 

8 for New, Reconstructed, and Modified 

9 Sources’’, prepared by the Environmental Pro10 tection Agency, Office of Air and Radiation, in 

11 May 2016 and identified by docket ID number 

12 EPA–HQ–OAR–2010–0505–7630; 

13 (8) continued use of the social cost of carbon 

14 and the social cost of methane by the Secretary of 

15 Energy and the Administrator of the Environmental 

16 Protection Agency ignores sound science for the pur17 pose of eliminating the exploration, mining, produc18 tion, and use of the abundant domestic sources of 

19 fossil fuel energy of the United States; and 

20 (9) the regulations of the Secretary of Energy 

21 and the Administrator of the Environmental Protec22 tion Agency are costing families of the United States 

23 billions of dollars each year and are justified, in 

24 large part, by the social cost of greenhouse gases, inVerDate Sep 11 2014 00:19 Dec 07, 2016 Jkt 069200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S3508.IS S3508

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1 cluding the social cost of carbon and the social cost 

2 of methane. 

3 SEC. 3. DEFINITIONS. 

4 In this Act: 

5 (1) ADMINISTRATOR.—The term ‘‘Adminis6 trator’’ means the Administrator of the Environ7 mental Protection Agency. 

8 (2) SECRETARY.—The term ‘‘Secretary’’ means 

9 the Secretary of Energy. 

10 (3) SOCIAL COST OF CARBON.—The term ‘‘so11 cial cost of carbon’’ means— 

12 (A) the social cost of carbon described in— 

13 (i) the document entitled ‘‘Technical 

14 Support Document: Social Cost of Carbon 

15 for Regulatory Impact Analysis Under Ex16 ecutive Order 12866’’, published by the 

17 Interagency Working Group on Social Cost 

18 of Carbon, United States Government, in 

19 February 2010; or 

20 (ii)(I) the document entitled ‘‘Tech21 nical Support Document: Technical Update 

22 of the Social Cost of Carbon for Regu23 latory Impact Analysis Under Executive 

24 Order 12866’’, published by the Inter25 agency Working Group on Social Cost of 


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1 Carbon, United States Government, in 

2 May 2013 and revised in November 2013 

3 and July 2015, and published and revised 

4 by the Interagency Working Group on the 

5 Social Cost of Greenhouse Gases, United 

6 States Government, in August 2016; or 

7 (II) any successor or substantially re8 lated document; and 

9 (B) any other estimate of the monetized 

10 damages associated with an incremental in11 crease in carbon dioxide emissions in a given 

12 year. 

13 (4) SOCIAL COST OF GREENHOUSE GAS.—The 

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

15 (A) the social cost of any greenhouse gas 

16 that is described in any successor document 

17 to— 

18 (i) the document entitled ‘‘Technical 

19 Support Document: Social Cost of Carbon 

20 for Regulatory Impact Analysis Under Ex21 ecutive Order 12866’’, published by the 

22 Interagency Working Group on Social Cost 

23 of Carbon, United States Government, in 

24 February 2010; or 


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1 (ii) the document entitled ‘‘Technical 

2 Support Document: Technical Update of 

3 the Social Cost of Carbon for Regulatory 

4 Impact Analysis Under Executive Order 

5 12866’’, published by the Interagency 

6 Working Group on Social Cost of Carbon, 

7 United States Government, in May 2013 

8 and revised in November 2013 and July 

9 2015, and published and revised by the 

10 Interagency Working Group on the Social 

11 Cost of Greenhouse Gases, United States 

12 Government, in August 2016; or 

13 (iii) the document entitled ‘‘Adden14 dum to Technical Support Document on 

15 Social Cost of Carbon for Regulatory Im16 pact Analysis under Executive Order 

17 12866: Application of the Methodology to 

18 Estimate the Social Cost of Methane and 

19 the Social Cost of Nitrous Oxide’’, pub20 lished by the Interagency Working Group 

21 on Social Cost of Greenhouse Gases, 

22 United States Government, in August 

23 2016; and 

24 (B) any other estimate of the monetized 

25 damages associated with an incremental inVerDate Sep 11 2014 00:19 Dec 07, 2016 Jkt 069200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S3508.IS S3508

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1 crease in greenhouse gas emissions in a given 

2 year. 

3 (5) SOCIAL COST OF METHANE.—The term ‘‘so4 cial cost of methane’’ means— 

5 (A) the estimate of the social cost of meth6 ane described in— 

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

8 Natural Gas Sector: Emission Standards 

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

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

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

12 Natural Gas Sector: Emission Standards 

13 for New, Reconstructed, and Modified 

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

15 2016)); 

16 (iii) the regulatory impact analysis en17 titled ‘‘Regulatory Impact Analysis of the 

18 Final Oil and Natural Gas Sector: Emis19 sion Standards for New, Reconstructed, 

20 and Modified Sources’’, prepared by the 

21 Environmental Protection Agency, Office 

22 of Air and Radiation, in May 2016 and 

23 identified by docket ID number EPA–HQ– 

24 OAR–2010–0505–7630; or 


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1 (iv)(I) the document entitled ‘‘Adden2 dum to Technical Support Document on 

3 Social Cost of Carbon for Regulatory Im4 pact Analysis under Executive Order 

5 12866: Application of the Methodology to 

6 Estimate the Social Cost of Methane and 

7 the Social Cost of Nitrous Oxide’’, pub8 lished by the Interagency Working Group 

9 on Social Cost of Greenhouse Gases, 

10 United States Government, in August 

11 2016; or 

12 (II) any successor or substantially re13 lated document; and 

14 (B) any other successor or substantially re15 lated estimate. 

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

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

18 (A)(i) the social cost of nitrous oxide de19 scribed in the document entitled ‘‘Addendum to 

20 Technical Support Document on Social Cost of 

21 Carbon for Regulatory Impact Analysis under 

22 Executive Order 12866: Application of the 

23 Methodology to Estimate the Social Cost of 

24 Methane and the Social Cost of Nitrous Oxide’’, 

25 published by the Interagency Working Group on 


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1 Social Cost of Greenhouse Gases, United States 

2 Government, in August 2016; or 

3 (ii) any other successor or substantially re4 lated document; and 

5 (B) any other estimate of the monetized 

6 damages associated with an incremental in7 crease in nitrous oxide emissions in a given 

8 year. 

9 SEC. 4. PROHIBITION ON CONSIDERING THE SOCIAL COST 

10 OF GREENHOUSE GAS, INCLUDING THE SO11 CIAL COST OF CARBON, THE SOCIAL COST OF 

12 METHANE, AND THE SOCIAL COST OF NI13 TROUS OXIDE. 

14 (a) IN GENERAL.—The Secretary, under any author15 ity, and the Administrator, under the Clean Air Act (42 

16 U.S.C. 7401 et seq.), may not consider the social cost of 

17 carbon, social cost of methane, social cost of nitrous oxide, 

18 or social cost of greenhouse gas— 

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

20 under— 

21 (A) any law; 

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

23 note; relating to regulatory planning and re24 view); or 


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

2 note; relating to improving regulation and regu3 latory review); 

4 (2) in any rulemaking; 

5 (3) in the issuance of any guidance; 

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

7 (5) as a justification for any rulemaking, guid8 ance document, or agency action. 

9 (b) EXCEPTION.—The Secretary and the Adminis10 trator may consider the social cost of carbon, social cost 

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

12 greenhouse gas in carrying out an activity described in 

13 subsection (a) only if, after the date of enactment of this 

14 Act, a Federal law is enacted that explicitly authorizes the 

15 consideration. 

16 SEC. 5. REPORT OF THE ADMINISTRATOR. 

17 Not later than 120 days after the date of enactment 

18 of this Act, the Administrator, in coordination and con19 sultation with the Secretary, the Secretary of the Interior, 

20 and the Council on Environmental Quality, shall submit 

21 to the Committees on Environment and Public Works and 

22 Energy and Natural Resources of the Senate and the 

23 Committees on Energy and Commerce and Natural Re24 sources of the House of Representatives a report describ25 ing the number of proposed and final rulemakings, guidVerDate Sep 11 2014 00:19 Dec 07, 2016 Jkt 069200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S3508.IS S3508

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1 ance documents, and agency actions that, since January 

2 2009, have used the social cost of carbon, the social cost 

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

4 the use of the social cost of carbon, the social cost of meth5 ane, or the social cost of nitrous oxide as part of any cost6 benefit analysis required under Executive Order 12866 (5 

7 U.S.C. 601 note; relating to regulatory planning and re8 view) or other relevant authority. 

Æ 


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