# Understanding the Transparency and Honesty in Energy Regulations Act

This bill would prevent federal agencies from using something called the "social cost of carbon" when making decisions about energy and environmental rules. To understand what this means in practical terms, imagine the government is deciding whether to allow a new coal plant or oil drilling operation. Right now, agencies can factor in an estimate of how much damage that carbon pollution will cause to society—things like increased flooding, crop failures, and health problems from climate change. This bill would ban that practice.

The "social cost of carbon" is essentially a dollar amount that economists calculate to represent the harm caused by releasing one ton of carbon dioxide into the atmosphere. For example, if the social cost is estimated at $50 per ton, and a new factory would emit 1 million tons annually, agencies could count $50 million in climate damages when deciding whether the factory's benefits outweigh its costs. This bill says federal agencies can no longer do this calculation. The same prohibition would apply to methane (natural gas) and nitrous oxide emissions. The bill affects major agencies like the Environmental Protection Agency, Department of Energy, Department of Interior, and others involved in energy and environmental decisions.

The bill's supporters argue that current estimates of these costs don't follow proper government guidelines and haven't gone through adequate public review. They contend the calculations are too speculative and rely on questionable assumptions. However, critics would likely argue that removing this tool makes it easier to approve polluting projects by ignoring their climate impacts. In practical terms, this could mean more coal mines, oil and gas drilling permits, and power plants would be approved because their environmental costs wouldn't be weighed against their economic benefits in the same way they are now.

Transparency and Honesty in Energy Regulations Act of 2022

Hudson, Richard

Transparency and Honesty in Energy Regulations Act of 2022 This bill prohibits specified federal entities (e.g., the Department of Energy) from considering the social cost of carbon, methane, nitrous oxide, or greenhouse gas as part of any cost-benefit analysis required under any law or specified Executive Orders. In addition, such social costs must not be considered by such entities (1) in rulemaking, (2) in the issuance of guidance, (3) in taking other agency action, (4) or as a justification for any rulemaking, guidance document, or agency action.