Category: Regulations

Trump Adviser Icahn Accused of Breaching Lobbying Rules

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A consumer advocacy group is filing a complaint to Congress on Wednesday accusing President Donald Trump’s friend and fellow billionaire Carl Icahn of violating lobbying rules by pushing the White House to change the federal ethanol regulations.

Public Citizen contends that Icahn, his company Icahn Enterprises and the CVR oil refining company he owns failed to register as lobbyists, yet pushed the White House to change the EPA’s decade-old rules on ethanol — a move that would save Icahn’s company hundreds of millions of dollars.

Trump named Icahn, whose net worth is pegged by Forbes at nearly $22 billion, as the White House’s special adviser for regulatory reform in December, but said he would “not be serving as a federal employee or a special government employee and will not have any specific duties.”

Icahn has aggressively advocated for the change in the ethanol rules under the EPA’s Renewable Fuel Standard since last year, and according to the Public Citizen complaint, he submitted a proposal to the White House on Feb. 27 to overhaul the program and shift the burden for complying with the ethanol rules to fuel wholesalers. The RFS, which was created by Congress, gives EPA authority to operate the nation’s biofuels program.

The letter to the secretary of the Senate and the clerk of the House calls for an investigation into whether Icahn and CVR’s activities constitute lobbying of the White House for changes to the program. The complaint also cites Icahn’s work in helping select EPA Administrator Scott Pruitt, and the proposed language he and fellow oil refiner Valero Energy submitted to the White House for a memo that would direct EPA to make the change.

“All of this has occurred with no record of any [Lobbying Disclosure Act] filings by or on behalf of Mr. Icahn, Icahn Enterprises or CVR Energy,” the complaint reads. “It is unlikely that all these activities occurred without some individual or entity being obligated to report lobbying activity under the LDA.”

The letter is latest controversy around the ethical complications that Trump, the wealthy members of his Cabinet and his advisers have faced because of their myriad business holdings.

(h/t Politico)

Trump Signs Executive Order to Roll Back Clean Water Rule

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President Trump’s newest executive orders target a water-protection rule and elevate an initiative on historically black colleges and universities into the White House.

Trump signed the executive orders in back-to-back signing ceremonies at the White House on Tuesday. The first seeks to undo the Waters of the United States Rule, an Obama administration regulation that sought to reinterpret the Clean Water Act to extend federal protections to smaller rivers and streams.

In a Roosevelt Room ceremony with farmers and lawmakers, Trump called the rule “one of the worst examples of federal regulation” and said “it has truly run amok.”

At issue: the definition of “navigable waters” under the Clean Water Act. Under the 2015 Obama rule, those waters could include, for example, anything within a 100-year floodplain or within 4,000 feet of a high-tide mark. “A few years ago, the EPA decided that ‘navigable waters’ can mean nearly every puddle or every ditch on a farmer’s land, or anyplace else that they decide — right? It was a massive power grab,” Trump said.

Trump’s plan of attack is similar to his earlier order aimed at a consumer-protection regulation called the Fiduciary Duty rule. Because the rule was finalized in 2015, the Trump administration will have to start the regulatory process from the beginning to remove it from the books. The executive order instructs the Environmental Protection Agency and the U.S. Army Corps of Engineers to do just that, asking them to reconsider whether federal jurisdiction extends to non-navigable streams.

But unlike the Fiduciary Duty Rule, which was scheduled to go into effect April 10, the Waters of the United States rule has already been blocked by a federal appeals court in Cincinnati. The executive order also asks the Justice Department to put that appeal on hold while the administration reconsiders the rule.

And it gives direct advice to agencies about how Trump would like to see the term “navigable waters” defined. In a 2005 Supreme Court decision, Justice Antonin Scalia defines them “only those relatively permanent, standing or continuously flowing bodies of water forming geographic features that are described in ordinary parlance as streams, oceans, rivers, and lakes.”

Delaware Sen. Tom Carper, the top Democrat on the Environment and Public Works Committee, did not sound optimistic that the rule would survive.

“If this were an objective review, I think that would be fine,” he said. “If this is a review that the Trump administration has already decided what the outcomes going to be, that’s not good.”

A second executive order moves the federal initiative on Historically Black Colleges and Universities, or HBCUs, into the White House from the Department of Education, where it was housed under the Obama administration.

Trump’s executive order establishes a President’s Board of Advisors on HBCUs, but still leaves much of the budgeting and administration of the initiative in the Department of Education.

“With this executive order, we will make HBCUs a priority in the White House — an absolute priority,” Trump said. “A lot of people are going to be angry that they’re not a priority, but that’s O.K.”

Grambling State University Richard Gallot, one of 80 college presidents who met with Trump Monday, welcomed moving the HBCU initiative back to the White House. “It does makes sense,” he said. “When an agency receives something from the White House suggesting action on HBCUs it has a different tone than three layers down from the Department of Education.”

Since President Jimmy Carter in 1980, every president has signed an executive order reorganizing the initiative. But Trump said moving the initiative into the White House will make it “an absolute priority.”

The HBCU order comes the day after Trump hosted the presidents of historically black colleges at the White House — cramming 64 of them into the Oval Office for a meeting. “I don’t think we’ve ever had this many people in the Oval Office,” Trump said to laughter. “This could be a new record, forever.

(h/t USA Today)

Reality

According to Vox, there is a catch: Rolling back this rule won’t be easy to do. By law, Pruitt has to go through the formal federal rulemaking process and replace Obama’s regulation with his own version — and then defend it in court as legally superior. And, as Pruitt’s about to find out, figuring out which bodies of water deserve protection is a maddeningly complex task that could take years.

Trump Signs Repeal of Transparency Rule for Oil Companies

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President Trump signed legislation Tuesday to repeal a controversial regulation that would have required energy companies to disclose their payments to foreign governments.

The legislation is the first time in 16 years that the Congressional Review Act (CRA) has been used to repeal a regulation, and only the second time in the two decades that act has been law. It is the third piece of legislation Trump has signed since taking office three weeks ago.

It is the start of one front in an aggressive deregulatory effort that the Trump administration and the GOP Congress are undertaking to roll back Obama-era rules on fossil fuel companies, financial institutions and other businesses that they say have suffered for the last eight years.

The resolution repeals a Securities and Exchange Commission (SEC) rule written under the 2010 Dodd-Frank financial reform law.

It was meant to fight corruption in resource-rich countries by mandating that companies on United States stock exchanges disclose the royalties and other payments that oil, natural gas, coal and mineral companies make to governments.

At a signing ceremony in the Oval Office, Trump said the legislation is part of a larger regulatory rollback that he and congressional Republicans are undertaking with the goal of economic and job recovery.

“This is a big signing, very important signing,” Trump said, flanked at his desk by House Speaker Paul Ryan (R-Wis.), House Financial Services Committee Chairman Jeb Hensarling (R-Texas), Sen. Jim Inhofe (R-Okla.) and other lawmakers.

“We’re bringing back jobs big league. We’re bringing them back at the plant level, we’re bringing them back at the mine level. The energy jobs are coming back,” he continued. “A lot of people going back to work now.”

Trump then asked Rep. Bill Huizenga (R-Mich.), the measure’s lead sponsor, to speak about it and regulatory reform in general.

“Over 20 years, there’s been 56,000 rules that have been put in place, with very little legislative input or oversight, and it’s time that changed,” he said.

The administration and congressional allies say the SEC rule imposes massive, unnecessary costs on United States oil, natural gas and mining companies, putting them at a significant competitive disadvantage to foreign companies that do not have to comply.

“Misguided federal regulations such as the SEC rule addressed by H.J.R. 41 inflict real cost on the American people and put our businesses, especially small businesses, at a significant disadvantage,” White House Press Secretary Sean Spicer said earlier Tuesday.

“It’s a priority for the Trump administration to fix our broken regulatory system so that it enhances American productivity and well-being without imposing unnecessary costs and burdens,” he said.

“Signing this joint resolution is one more step toward achieving this goal.”

The House passed the repeal measure earlier this month, followed shortly by the Senate.

Democrats and supporters of the SEC rule see the rollback as a victory for corruption.

“The rule they’re trying to repeal protects U.S. citizens and investors from having millions of their dollars vanished into the pockets of corrupt foreign oligarchs,” Sen. Sherrod Brown (D-Ohio), top Democrat on the Senate Banking Committee, said earlier this month. “This kind of transparency is essential to combating waste, fraud, corruption and mismanagement.”

Supports argued in part that if the United States takes a leading role on foreign payment transparency, other major nations would follow.

Exxon Mobil Corp., whose former CEO Rex Tillerson is now secretary of State, was one of the most vocal opponents of the rule, along with other major oil companies.

The SEC is still obligated under the Dodd-Frank law to write some form of a transparency rule for extractive industries.

But under the CRA, the agency can never publish any rule that is “substantially the same” as the one that has now been overturned.

Both chambers of Congress have also passed a CRA resolution to overturn the Interior Department’s stream protection rule for coal mining, and Trump supports the repeal.

The House has passed numerous other regulatory repeal measures under the CRA, including ones on methane pollution and gun ownership, and the Senate is likely to take up at least some of them.

(h/t The Hill)

Trump Says He Wants To Cut ‘70 To 80 Percent’ of Regulations

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It can be notoriously difficult to pin down Donald Trump on the finer points of policy. But on Monday morning, the Republican presidential nominee put forth a surprisingly specific proposal: He is going to cut “70 to 80 percent” of federal regulations if he wins the White House.

Trump, lagging badly in the polls, made his anti-regulatory vow while speaking at a farmers’ roundtable in Boynton Beach, a town in the must-win state of Florida. The real estate mogul did not explain how his administration would determine which rules to axe, or how they would go about accomplishing such an unprecedented rollback through executive fiat.

“We want clean air, we want clean water,” Trump said. “But we have and you have situations and regulations, which we’re gonna cut ― we will probably cut 70 to 80 percent of the regulations, OK?”

The Republican nominee told farmers that the regulatory oversight of the Environmental Protection Agency, a favorite target of his, was simply too much to bear. The federal agency that enforces clean air and water laws has been a “total disaster,” and regulations on the whole “have been a total catastrophe,” he said.

Trump clarified, however, that he likes fresh air as much as the next person. “Look, we all believe in environment,” he said. “I mean, my primary thing with the environment ― immaculate air, beautiful clean air, and crystal clean water. That’s it. Once you go beyond that, you start to lose all of us, OK?”

Facing an increasingly narrow path through the electoral college, Trump has been banging the anti-regulation drum hard in recent days, starting with his “contract with the American voter.” In that agenda, Trump says that he will require that two regulations be repealed for every new one that goes into effect, offering no rationale for that seemingly arbitrary ratio.

A President Trump might be surprised by how difficult it would be to repeal 70 to 80 percent of federal regulations. A president could undo certain regulations that are established through executive action, and effectively weaken others by choosing not to enforce them much. But businesses mostly face regulations that have been established by Congress, through laws like the Clean Water Act and the Clean Air Act. Congress would therefore have to undo such laws.

Trump has gone so far as to claim that the nation’s coal barons are practically starving, thanks to regulations.

“I have friends that own the mines. I mean, they can’t live,” Trump said at a Pennsylvania campaign event in August. “The restrictions environmentally are so unbelievable where inspectors come two and three times a day, and they can’t afford it any longer and they’re closing all the mines. … It’s not going to happen anymore, folks. We’re going to use our heads.”

(h/t Huffington Post)

Reality

The Code of Federal Regulations is the published list all of the general and permanent rules and regulations by the executive departments and agencies of the federal government of the United States. In it is the 50 categories that represent broad areas subject to federal regulation, which consists of a lot more than “clean air.”

Just to name a few examples of the regulatory agencies that are designed to keep you safe as a homeowner, motorist, student, employee, employer, and a consumer of fruits, vegetables, meat, drugs, alcohol, utilities, banking, and shipping include:

  • Federal Aviation Administration (FAA): regulates and promotes air transportation safety, including airports and pilot licensing.
  • Federal Trade Commission (FTC): ensures free and fair competition and protects consumers from unfair or deceptive practices.
  • Food and Drug Administration (FDA): administers federal food purity laws, drug testing and safety, and cosmetics.
  • National Labor Relations Board (NLRB): prevents or corrects unfair labor practices by either employers or unions.
  • Occupational Safety and Health Administration (OSHA): develops and enforces federal standards and regulations ensuring working conditions.

 

 

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