[Congressional Record Volume 168, Number 138 (Tuesday, August 23, 2022)]
[Extensions of Remarks]
[Pages E868-E869]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         BUILD BACK BETTER ACT

                                 ______
                                 

                               speech of

                        HON. FRANK PALLONE, JR.

                             of new jersey

                    in the house of representatives

                        Friday, August 12, 2022

  Mr. PALLONE. Madam Speaker, I rise in support of our historic 
legislation, the Inflation Reduction Act of 2022 (IRA or the Act). The 
Act establishes incentives and actions to reduce greenhouse gas (GHG) 
emissions and other forms of health-harming pollution throughout every 
major sector including transportation, electricity production, 
industrial, manufacturing, and buildings while also lowering energy 
costs so Americans across the country will see savings. At the same 
time, the Act reinforces the longstanding authority and responsibility 
of the Environmental Protection Agency (EPA) to regulate GHGs as air 
pollutants under the Clean Air Act (CAA). The IRA combines new economic 
incentives to reduce climate pollution with bolstered regulatory 
drivers that will allow EPA to drive further reductions under its CAA 
authorities.
  The IRA contains the most important and far-reaching amendments to 
the CAA in more than a generation. EPA's responsibility to address GHG 
air pollution under the CAA is long-standing and time tested. By 
passing the IRA, Congress underscores and reinforces that 
responsibility. To the extent the Supreme Court has suggested otherwise 
under the so-called ``major questions'' doctrine, the IRA is abundantly 
clear.
  As Chairman of the Committee on Energy and Commerce (the Committee), 
I would like to specifically address the provisions related to EPA 
rulemaking within the Committee's jurisdiction. These specific 
provisions include those provisions supporting EPA rulemaking to 
address climate change, providing clean energy incentives that EPA may 
take into account in developing regulatory requirements, and imposing 
additional requirements that EPA must implement through rulemaking. I 
am proud to say that many of these provisions were developed by the 
Committee, so I would like to explain how Congress intends these 
provisions to work, state our intent for EPA action under them, and 
clarify the legislative requirements.
  The IRA is expected to reduce GHG emissions by approximately 40 
percent from 2005 levels by 2030. The Act achieves this objective in 
large part by amending the CAA to give EPA the authority and funding to 
collect fees on excess methane emissions from the oil and gas sector, 
and to spend tens of billions of dollars to provide grants, make 
assessments, conduct monitoring and outreach, provide technical 
assistance, and undertake other actions to reduce GHG emissions. (See 
Sections 60101, 60102, 60103, 60114, and 60201, which add new CAA 
Sections 132, 133, 134, 137, and 138, respectively). It also provides 
EPA with additional funding to support rulemaking under the CAA to 
reduce GHG emissions.
  Of particular note, Section 60107, the Low Emissions Electricity 
Program, adds CAA Section 135, which directs EPA to conduct an 
assessment of the reductions in GHG emissions that result from changes 
in domestic electricity generation and use that are anticipated to 
occur on an annual basis through fiscal year 2031. This assessment 
should take into account both changes in the carbon intensity of 
electricity generation (including reductions in fossil fuel-fired 
generation and increases in renewable and other low- or zero-emitting 
generation, including hydrogen), and changes in the amount of 
electricity use (including increases in use due to electrification of 
mobile sources and other beneficial electrification and decreases in 
use due to energy efficiency measures). Section 135(a)(6) provides $18 
million for EPA ``to ensure that reductions in greenhouse gas emissions 
are achieved through use of the existing authorities of this Act,'' 
incorporating the assessment under Section 135(a)(5). Congress intends 
for EPA to have significant discretion regarding how to incorporate the 
assessment under paragraph (5) in its actions under the ``existing 
authorities.''
  These ``existing authorities'' include CAA Section 111 for stationary 
sources (among other provisions), which, since its enactment, has 
provided EPA extensive authority to promulgate impactful regulations 
that reduce GHGs, from, but not limited to, the electric power sector, 
the industrial sector, and the oil and gas sector as well as CAA 
Section 202 and other provisions under title II for mobile sources. 
These and other CAA provisions give EPA broad authority to address air 
pollution problems, including those that may not have been well 
understood at the time of enactment, and to do so on the basis of novel 
mechanisms as may be appropriate for the air pollutant and industry at 
issue. Congress recognizes that regulation of GHGs in particular may 
present novel and complex issues that may require innovative 
regulations and the enormity of the climate crisis will require that 
the regulations be impactful while adhering to statutory requirements.
  In providing additional funding under Section 60107, Congress intends 
that EPA construe its authority under the existing CAA authorities 
broadly, consistent with the requirements of those authorities, so EPA 
can promulgate impactful and innovative regulations, as appropriate. 
Congress believes that EPA has sufficient expertise in the various 
industries that may be affected, including the electric power sector, 
to promulgate these rulemakings. Congress' understanding that the 
existing CAA authorities give EPA broad authority to promulgate 
innovative and impactful regulations to reduce GHGs is consistent with 
the additional funding that the IRA gives EPA under the CAA to issue 
grants that promote innovative technology to reduce GHGs. Congress 
recognizes that promulgating and implementing GHG regulations may be 
resource-intensive, and the additional funding under Section 60107 will 
allow EPA to prioritize these regulations and devote the necessary 
resources to execute them.
  EPA is currently undertaking rulemaking under CAA Section 111 to 
regulate methane

[[Page E869]]

from the oil and gas sector and issued a proposed rule in November of 
2021. (86 Fed. Reg. 63110 (Nov. 15, 2021); hereinafter ``EPA's proposed 
methane standards''). As previously noted, CAA Section 111 is one of 
the ``existing authorities'' funded by Section 60107 of this Act. 
Section 111 is also one of the primary tools in the CAA for regulation 
of air pollutants from both new and existing stationary sources. (See 
H. Rept. 117-64, at 6 (footnote 19), 10).
  Section 60113 of the IRA, the Methane Emissions Reduction Program, 
recognizes the importance of EPA's proposed methane standards and 
ongoing rulemaking to regulate methane from the oil and gas sector. 
Specifically, the new CAA Section 136 authorizes the Methane Emissions 
and Waste Production Incentive Program for Petroleum and Natural Gas 
Systems (the Methane Program), which establishes a waste emissions 
charge for ``applicable facilities'' and provides an exemption from the 
waste emissions charge based on compliance with EPA's proposed methane 
standards, if finalized. In including this exemption, Congress 
recognizes and reaffirms that regulation of methane from both new and 
existing oil and gas sources, including those located in the 
production, processing, transmission, and storage segments, is clearly 
authorized under CAA Section 111. And by applying the Methane Program 
to facilities located in the production, processing, transmission, and 
storage segments that would also be regulated by EPA's proposed methane 
standards, Congress recognizes that the regulation of methane emissions 
from these facilities is necessary for public health and welfare, 
including for climate protection. (See H. Rept. 117-64, at 3-5).
  As part of the Methane Program, we are establishing a waste emissions 
charge exemption for applicable facilities that are in compliance with 
applicable emissions standards in effect pursuant to CAA Section 111(b) 
and pursuant to plans under CAA Section 111(d). The basis for this 
exemption will be a determination by the EPA Administrator that certain 
conditions are met before any applicable facility may qualify. First, 
the EPA Administrator must determine that CAA Sections 111(b) and 
111(d) methane emission standards are in effect in all States where 
applicable facilities are located. Second, the EPA CAA 111(b) and 
111(d) methane emissions standards must be finalized and in effect, and 
the Administrator must determine that those final standards will result 
in equivalent or greater reductions than EPA's proposed methane 
standards. Once the Administrator makes the appropriate determination, 
the exemption may be applied to any applicable facility subject to and 
compliant with methane standards pursuant to CAA Section 111. If any 
condition is not met after the Administrator has made the 
determination, applicable facilities will no longer qualify for the 
exemption and will again be subject to the charge.
  Notably, the collective emissions from new or existing sources at an 
applicable oil and gas facility may be subject to a mix of standards 
under CAA Sections 111(b) and 111(d). Therefore, to qualify for the 
exemption, any new sources at the applicable facility should be in 
compliance with any applicable new source standards, and any existing 
sources located at the applicable facility should be in compliance with 
any applicable standards in a plan effective under Section 111(d).
  Another key purpose of the Methane Program is to encourage the 
development of innovative technologies in the detection and mitigation 
of methane emissions, particularly to support the mitigation of impacts 
on low-income and disadvantaged communities most affected by pollution 
from oil and gas facilities. New CAA Section 136(a) provides funds to 
incentivize methane mitigation and monitoring, including to provide 
financial and technical assistance to reduce methane and other GHG 
emissions from petroleum and natural gas systems, mitigate legacy air 
pollution from petroleum and natural gas systems, and provide support 
for communities. In particular, Section 136(a)(3)(C) provides funds for 
supporting innovation in reducing methane and other GHG emissions and 
waste, and Section 136(a)(3)(E) provides funds for mitigating health 
effects of methane and other GHG emissions and legacy air pollution 
from petroleum and natural gas systems in low-income and disadvantaged 
communities. Additionally, new CAA Section 136(a)(2) and Section 
60105(e) of the IRA provide funds for methane emissions monitoring 
under CAA Section 103 (a) through (c). And new CAA Section 138(b)(2)(A) 
provides funds for community-led air and other pollution monitoring, 
prevention, and remediation, as well as investments in low- and zero-
emission and resilient technologies and related infrastructure and 
workforce development that help reduce GHG emissions and other air 
pollutants.
  Finally, EPA's proposed methane standards solicited comment on a 
program to require owners and operators of oil and natural gas 
facilities to investigate and mitigate so-called ``super-emitter'' 
emission events upon notification by a community, federal or state 
agency, or other third party of an emission event above a defined 
threshold. The funds provided by new CAA Sections 136 and 138 and 
Section 60105(e) of this Act could be implemented to support third-
party monitoring activities using advanced methane detection 
technologies consistent with such a program, if finalized by EPA.

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