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Senate Reinstated Obama-Period Rules on Methane

WASHINGTON – The Senate voted Wednesday to effectively reintroduce an Obama-era ordinance to curb methane emissions, a powerful climate-warming pollutant that must be controlled to meet President Biden’s ambitious climate change promises .

On one side of Congressional Republicans who liberally enacted a once obscure law in 2017 to roll back Obama-era regulations, Democrats invoked the law to roll back a Trump methane rule enacted late last summer. This rule had eliminated Obama-era control over methane leaks from oil and gas wells.

The 52-42 vote marked the first time Congressional Democrats have implemented what is known as the Congressional Review Act. It bans filibusters in the Senate and ensures that the last-minute rules of a simple majority government can be swiftly repealed in both houses of Congress. Three Republican senators – Susan Collins from Maine, Lindsey Graham from South Carolina, and Rob Portman from Ohio – joined Democrats and Democrats in voting in favor of the measure.

The in-house adoption of the measure next month is considered pro forma, as is Mr Biden’s signature. And if Donald J. Trump’s regulation were out of the way, the Obama methane rule would come back into effect.

This rule, published in 2016, set the first state limits for methane leaks from oil and gas wells, requiring companies to monitor, plug, and contain methane leaks at new wells.

Mr Biden has vowed to put climate change high on his agenda. He re-acceded to the Paris Agreement, hired his cabinet chiefs to implement climate-friendly policies across government, and included hundreds of billions of dollars in renewable energy projects in an infrastructure package pending before Congress. Last week, at a global climate summit, Mr Biden announced that the United States would cut its greenhouse gas emissions by 50 percent by 2030 compared to 2005.

With the strike of the Trump methane rule, the Democrats took the first legislative step towards this goal.

“Once the president signs it, this will be the first step by Congress and this administration to put climate policy back in the books,” said Dan Grossman, director of legislative and regulatory affairs for the Environmental Defense Fund, an advocacy group.

In a statement in support of the vote, the White House called methane “a powerful greenhouse gas that is responsible for about a third of global warming”.

The statement added that “tackling methane pollution” is “an urgent and essential step”.

The Congressional Review Act allows Congress to reverse any executive rule within 60 law days of it coming into effect. However, since the president can veto the measures of the law, the law can only be effectively applied after a new administration has taken control.

Republicans used the process to wipe out 14 late Obama administration rules in the first 16 weeks of the Trump administration, but Wednesday’s vote marked the first time Democrats used the process to reverse the policies of a Republican administration . Democrats plan to use the process just one more time in the coming weeks, before their time window expires in late May, with a vote to repeal a labor rule that had made it easier for employers to deny workers’ claims to employment discrimination.

New York Senator Chuck Schumer, the majority leader, described Wednesday’s vote as “one of the most important votes that this Congress not only cast, but that has been cast in the past decade on our fight against global warming.”

It will be harder for Democrats to push through broader climate change legislation – they will either have to get enough Republican votes to get the 60-vote majority needed to overcome a filibuster or try to convert climate action into a planned infrastructure spending package and hope they can use a budget rule that allows passage with 51 votes.

Nonetheless, Mr Schumer noted that Wednesday’s vote was a touch of bipartisanism on climate change. Speaking of his vote to restore the methane rule, Mr Graham, who has emerged as a staunch ally of Mr Trump, said, “I think it’s just unnecessary emissions that you can do something about and you have to do it.”

Most Republicans opposed the move to reintroduce the ordinance, but were cautious in their opposition to methane pollution containment.

“More regulations are not the answer,” said Wyoming Senator John Barrasso, the senior Republican on the Senate Energy Committee. Mr Barrasso noted that he had written laws to reduce methane emissions by asking for an additional permit for natural gas pipelines. “Congress should push solutions like my legislation – not relict regulatory struggles from the past,” he said.

Senator Steve Daines, Republican of Montana, said, “We need policies that encourage continuous innovation, not more bureaucratic regulation.”

Both the scientific understanding of the role methane plays in climate change and the position of the oil and gas industry have changed since Obama’s administration first tried to regulate methane pollution. Scientists now see that gas is playing a bigger role in rapidly warming the planet than previously thought, while some large oil and gas companies who fought methane regulations a decade ago are now saying they welcome, or at least so, the return of the methane rules can work.

Most of the climate action proposed by Mr Biden aims to reduce carbon dioxide, which is the result of burning fossil fuels and which is the most abundant and harmful greenhouse gas.

Methane, which is barely a second, is released primarily through leaks in oil and gas wells. It stays in the atmosphere for a shorter time than carbon dioxide, but has a larger breakdown as long as it lasts. According to some estimates, methane has 80 times the thermal storage capacity of carbon dioxide in the atmosphere for the first 20 years.

A new United Nations report, prepared by an international team of scientists and slated for release next month, is expected to declare that reducing methane emissions, the main constituent of natural gas, must play a far more important role in preventing the worst effects of the Climate change.

The report, the detailed summary of which was viewed by the New York Times, also says that expanding the use of natural gas is incompatible with sustaining global warming unless there is significant use of unproven technologies that remove greenhouse gases from the air Can be drawn 1.5 degrees Celsius, a goal of the international Paris Agreement.

Many large oil and gas companies have spoken out in favor of methane regulations: Exxon, Shell and BP actually urged the Trump administration to uphold the Obama methane rules. These companies have invested millions of dollars in promoting natural gas as a cleaner fuel than coal in the country’s power plants, since natural gas produces about half as much carbon dioxide when burned. They fear that unconditional methane leaks could undermine that marketing message and reduce demand.

On Wednesday, Vicki Hollub, the executive director of Occidental Petroleum, an international oil company based in Houston, told a Senate committee that she supported the vote to reintroduce methane regulations.

“We need regulations to make sure we have adequate control across the industry,” she said.

Devon Energy, an Oklahoma-based natural gas producer, tweeted Wednesday, “We believe that significant reductions in methane emissions are essential to managing the risks of climate change. While the Congressional Review Act is an exceptional piece of legislation that should be used with caution and caution, we support the ongoing efforts of Congress to find a way towards a permanent framework for federal methane regulation that encourages innovation and operational flexibility promotes. “

Once the Obama methane rules are reinstated, Mr. Biden plans to go further: While the Obama rules require companies to monitor and control methane leaks from new wells, Mr. Biden has his Environmental Protection Agency administrator Michael Regan, instructed to prepare new regulations in the coming months that would also require companies to control methane leaks at existing oil and gas wells.

This prospect is a cause for concern for small independent oil companies, who fear that new regulations requiring companies to install methane leak control technology could be adopted by large companies but cost small companies a cost they cannot afford.

“Our problem isn’t the need to control emissions,” said Lee Fuller, executive vice president of the Independent Petroleum Association of America. “The greatest impact of regulating existing wells will inevitably fall on low production wells. There the extent of the impact will decrease. So the question is what it will look like. “

Mr Fuller said his group intends to spend the coming months explaining to the Biden administration that the next round of methane rules should provide tailored guidelines between the giant oil producers of companies like Shell and Exxon and the small two companies distinguish. or three-well operations by independent wildcatter like its members.

“Our goal will be to ensure that the regulatory process distinguishes between large and small wells, each with appropriate regulations,” he said.

Emily Cochrane contributed to the coverage.

Categories
Politics

Congress Poised to Apply Banking Laws to Antiquities Market

The antiques trade, long feared by regulators as a fertile ground for money laundering and other illegal activities, will be subject to more scrutiny under the laws passed by Congress on Friday that override President Trump’s veto.

The provisions to tighten control of the antique market were included in the sprawling National Defense Authorization Bill vetoed by Mr Trump last week and which the House and Senate overruled Monday and Friday.

Regulators have long feared that the opacity of the antique trade, where buyers and sellers themselves are rarely identified to the parties to a transaction, has made it an easy way to disguise illegal money transfers. The new legislation empowers federal regulators to develop measures to break the secrecy of transactions.

“We believe this type of legislation is long overdue,” said John Byrne, an attorney with 30 years of anti-money laundering experience. “This is an area where clearly organized crime, terrorists and oligarchs have used cultural artifacts to move illicit funds.”

The dealers resisted the move. With the new legislation, however, Congress expanded the 1970 Banking Secrecy Act, which strengthened federal control over financial transactions, to include trading in ancient artifacts.

Exactly how the new law works will be determined next year by the Financial Crimes Enforcement Network, an office of the finance department, in consultation with the private sector, law enforcement agencies and the public. Legal experts expect the new rules for antiques to be similar to those of the precious metals and jewelry industries, with certain transactions reported to authorities who will then determine if they are suspicious. The law also seeks to end the use of shell companies to hide the identity of buyers and sellers.

The sponsors of the new measure described it as an urgently needed reform.

“For the past decade, we’ve worked with all industries and stakeholders to come up with a bill that will satisfy everyone,” said New York Democrat Carolyn B. Maloney, who introduced the Corporate Transparency Act in 2019 and later led the bill into it Defense Package. “We have got to the point where we have built so much support that it became impossible to defy the bill.”

The Corporate Transparency Act has been opposed by antique dealers who opposed the obligation to disclose customer information and the additional costs of complying with the law. The art industry has fought against similar laws that would have extended the banking secrecy law to the art market.

Federal data shows that Christie’s auction house has paid lobbyists more than $ 100,000 in the past two years to influence the results of such actions. A spokeswoman for the auction house, Erin McAndrew, said the compliance department already complies with anti-money laundering standards that were passed by the European Union in 2018.

She said that “Christie’s welcomes the opportunity to work with US regulators on appropriate and enforceable” anti-money laundering policies in the art market.

Guard dogs have been calling on Congress for years to tighten regulations on the antiques trade. The looting of heritage sites in countries like Syria and Iraq has created a growing black market for antiques from the Middle East. Law enforcement agencies abroad have confiscated hundreds of artifacts that officials believe may have resulted from previous excavations carried out by terrorist groups such as ISIS.

“The proposed legislation will start to fill a huge void,” said Tess Davis, executive director of the Antiquities Coalition, a nonprofit that oversees the illicit trade in artifacts.

“The business model of a pawn shop is not that different from that of a Sotheby’s or Christie’s,” she added. Pawnbrokers, however, fall under the scope of the Banking Secrecy Act, but auction houses do not. “Why should the rules of a corner shop selling stereos in Milwaukee be stricter than a billion-dollar auction house in Manhattan?”

However, some traders claim that reports of black market transactions and money laundering are exaggerated. A trader, Randall A. Hixenbaugh, the president of a nonprofit called the American Council for the Preservation of Cultural Property, has called statistics on trafficking unfounded and opposed the new regulations.

“Virtually all large dollar transactions in the antique art business are conducted through financial institutions and instruments that are already covered by the Banking Secrecy Act,” said Hixenbaugh. “Criminals who want to launder illegitimate funds could hardly choose a worse good than antiques.”

Legislatures that helped draft the new rules said they were guided by what they learned from Congressional hearings and from industry experts. Unesco warned in 2020 that the development of online sales platforms and social networks had facilitated the illegal sale of antiques and that existing regulations could not contain the black market.

The new legislation calls for a study on the role of art in money laundering and terrorist financing. (A recent Senate report outlined how at least two Russian oligarchs exploited the opaqueness of the art world to evade US sanctions.) If the study finds a link between the art market and illegal activity, it could be after review Congress triggered the creation of rules similar to those that now apply to the antiques trade. The regulators have also signaled that the banking secrecy law could be further extended to the art market.

“You need to know who is buying and selling,” said Byrne. “The argument that you are not required to report suspicious activity because you are in the private sector does not work. Banks lost that argument 30 years ago. “