Legislative Update: Senators Introduce Bills to Stop EPA Overreach on IRIS and TSCA Assessments

Senators John Kennedy (R-LA), Joe Manchin (D-WV), and Ted Budd (R-NC) have teamed up to introduce a pair of bills to block EPA’s chemical risk assessments under its Integrated Risk Information System (IRIS) and Toxic Substances Control Act (TSCA) programs.

Sen. John Kennedy (R-LA) introduced the No Industrial Restrictions In Secret Act (No IRIS Act, S. 3724), which aims to prevent the Environmental Protection Agency (EPA) from utilizing data from the IRIS to impose regulations on America’s chemical manufacturing sector without congressional approval.  Kennedy argues that the Biden administration is leveraging the EPA’s IRIS to impose excessive regulations, negatively impacting the U.S. job market and economy, especially in Louisiana where chemical manufacturers play a significant economic role.  Rep. Glenn Grothman (R-WI) plans to introduce companion legislation in the House of Representatives. Critics highlight concerns regarding the lack of statutory authorization for the IRIS program, allowing EPA officials to wield disproportionate regulatory power with minimal oversight.

The American Chemistry Council (ACC) supports the No IRIS Act, citing the IRIS program’s history of inconsistency with scientific standards and its adverse effects on American industries. The legislation’s proponents argue that it safeguards the integrity of scientific assessments and promotes transparency in regulatory decision-making, which is crucial for fostering innovation and competitiveness in the chemical sector.

Separately, Senators Joe Manchin (D-WV) and Ted Budd (R-NC) on Feb. 1 introduced the Sound Science for Farmers Act (S. 3719) to impose accountability and scientific rigor in EPA’s use of IRIS and TSCA  assessments, risk evaluations, and regulatory actions concerning chemicals affecting American farmers and producers. The bipartisan legislation seeks to prevent the EPA from imposing sweeping regulations without undergoing a comprehensive and transparent peer review process. Senator Manchin emphasized the bill’s mandate for the EPA to solicit adequate industry feedback and engage with relevant federal agencies and stakeholders to avoid rushed and burdensome rules.

The Sound Science for Farmers Act includes provisions requiring the EPA to share assessments, evaluations, or regulations with other agencies for interagency comments and to undergo full, open peer reviews focusing on scientific quality, transparency, reproducibility of results, and consideration of real-world exposure effects on the agricultural sector.

A broad coalition of 35 industry groups supports the bill, including the ACC, the American Farm Bureau Federation, the National Corn Growers Association, the American Petroleum Institute, the Fertilizer Institute, and the U.S. Chamber of Commerce.  In a Jan. 31 letter to the Senators, they emphasized, “EPA is poised to issue TSCA and IRIS assessments for dozens of building block chemicals used in agriculture and other key industries in the coming years, and these actions could result in bans, unachievable standards, enforcement actions, and litigation. Unfortunately, the EPA has proposed changes to its chemical risk evaluation framework, undermining peer review and TSCA scientific standards for ‘best available science.’ EPA has also indicated it will not exclude key agricultural uses, including those thoroughly regulated by other federal agencies, from these reviews.”

House Energy and Commerce (E&C) Chair Announces Retirement 

House Energy and Commerce Committee Chairwoman Cathy McMorris Rodgers (R-WA) announced her plans to retire after the 118th Congress.  During her tenure, McMorris Rodgers utilized her position to advocate for priorities such as hydropower and nuclear energy, which are embraced by the GOP as zero-emission electricity sources, contrasting with wind, solar, and battery storage.  She has led in efforts challenging implementation of the Inflation Reduction Act regulations to limit greenhouse gas emissions and restrictions on fossil fuels.

McMorris Rodgers is the latest in a large group of E&C lawmakers to announce their departure, including several subcommittee leaders. They include former Rep. Bill Johnson (R-OH), who left the House last month, and Reps. John Curtis (R-UT), Larry Bucshon (R-IN), Doug Lamborn (R-CO), Michael Burgess (R-TX), Debbie Lesko (R-AZ), Anna Eshoo (D-CA), Tony Cardenas (D-CA) and John Sarbanes (D-MD). The mass exodus has led to concerns about the Committee’s significant loss of expertise.

McMorris Rodgers also joins a string of powerful Republican Chairs who announced retirement recently.  Just this week, House Homeland Security Chair Mark Green (R-TN) and the Select Committee on the Strategic Competition between the United States and the Chinese Chairman Mike Gallagher (R-WI), Chairman of the Communist Party, made surprise announcements that they won’t seek re-election. House Appropriations Committee Chair Kay Granger (R-TX) and Financial Services Committee Chair Patrick McHenry (R-NC).  While they all commended the work they have accomplished, several have cited their frustrations with the current state of legislative dysfunction and a fractured conference.

Rep. Bob Latta (R-OH), the Committee’s most senior member and the current Communications and Technology Subcommittee Chair, is seeking to succeed McMorris Rodgers. Latta is the lead sponsor of the “Nuclear Fuel Security Act” (H.R. 1086), which seeks to boost domestic uranium production and enrichment.  Rep. Brett Guthrie (R-Ky.), chair of the Health Subcommittee, is reportedly planning to run for the post.  Guthrie is also an advocate of nuclear power.  Other possible candidates that have yet to throw their hat in the ring include Reps. Morgan Griffith (R-VA), Richard Hudson (R-NC), and Tim Walberg (R-MI).

House and Senate Leave for Recess as March 1 Deadline Looms and Tax Bill Lingers

Lawmakers are leaving town for the President’s Day recess this week.  Senators have already left and will return on February 26 and the House will resume on February 28, less than a week until federal cash expires for a portion of the government on March 1. The second deadline is on March 8 per the last continuing resolution that extended a two-tiered stop-gap spending bill.  Despite finally announcing a $1.66 trillion top-line agreement for FY24 weeks ago, House and Senate appropriators have had little movement on agreeing on individual spending bills. Staff and appropriators will continue to work on the agreements over the recess.

Congressional leadership has remained optimistic that they will be able to avert a shutdown; however, they are still far apart on how to allocate the money and have several ongoing partisan policy sticking points that will have to be worked through.  If they can’t overcome these differences in the next couple of weeks, they will have to try and pass yet another continuing resolution (CR).

The Senate also left for its nearly two-week recess without taking up the House-passed $78 billion tax bill that boosts the child tax credit and reinstates business deductions, including allowing businesses to deduct research and development costs every year instead of over five years.

Congressman Williams Challenges EPA’s Regulatory Overreach on Small Businesses

On Feb. 14, Rep. Roger Williams (R-TX), Chair of the House Small Business Committee, wrote a letter to EPA Administrator Michael Reagan regarding five EPA rules and proposed rules that are potentially detrimental to small businesses.  Williams cited a significant increase in regulatory burdens under the current administration, equaling 6.5 million hours in increased paperwork hours and costing the U.S. economy over $249.7 billion across all industries.

Williams detailed the following five rules in the letter:

• National Emission Standards for Hazardous Air Pollutants: Commercial Ethylene Oxide (EtO) Sterilization Technology Review
• Reconsideration of the National Ambient Air Quality Standards for Particulate Matter (PM2.5)
• Clean Power Plant Rule
• Methane
• PFAS National Primary Drinking Water Regulation Rulemaking

Chairman Williams emphasized that while some of these rules do not directly regulate business activity, “they would—individually and collectively—have a major impact on U.S. small businesses and their operations.” He underscored the adverse effects of excessive regulations on industries like oil and gas and several plants and businesses that would be forced to shut down.   Williams requested that EPA provide information on these rules’ impact on small businesses while underscoring the need for a streamlined regulatory environment to foster economic growth.

House Agriculture Committee Hearing  Present Main Policy Issues Preventing Consensus on a Farm Bill

Republican and Democratic lawmakers remained deeply divided on various issues hindering the advancement of the Farm Bill, evident during their questioning of Agriculture Secretary Tom Vilsack during a February 14 hearing held by the House Agriculture Committee.  Vilsack emphasized that farmers face uncertainty because Congress has not passed long-stalled annual appropriations and the Farm Bill. Neither the House nor Senate Agriculture committees have yet released a draft of the bill, which expired in 2023 but continues running through a one-year extension passed in a CR last year.

House Agriculture Committee Chairman Glenn Thompson (R-PA) still hopes to bring the bill to the floor in March but acknowledges that it is contingent on lawmakers resolving the governmentwide appropriations for the current fiscal year.  Some of the delay is due to lawmakers awaiting cost estimates from the Congressional Budget Office (CBO) on some farm programs, but much can be attributed to three main policy issues that are areas of contention.

• USDA’s Authority Over the Thrifty Food Plan: Democrats advocate for maintaining the USDA’s authority to update the Thrifty Food Plan, which determines Supplemental Nutrition Assistance Program (SNAP) benefits. However, Republicans believe that any revisions to the plan must be cost-neutral to allocate budget authority for farm programs.
• Climate-Smart Conservation Programs: Republicans are concerned that climate-related provisions are crowding out more traditional farm needs. They propose transferring the $20 billion program within the Inflation Reduction Act into the farm bill to support a broader spectrum of conservation practices while proposing adjustments to reference prices that trigger crop subsidy payments. Conversely, Democrats prioritize retaining climate-smart conservation programs within the Inflation Reduction Act, which targets carbon or other greenhouse gas benefits.
• Authority of Agriculture Secretary over Commodity Credit Corporation (CCC) Funds: Republicans are advocating for requiring the Agriculture secretary to obtain Congressional approval for specific decisions regarding CCC funds. Conversely, Democrats seek to uphold the Agriculture secretary’s authority to utilize funds from the CCC funds to stabilize and support farm income and prices, particularly during emergencies.

Industry Urges EPA Delay on Environmental Justice Guidance Amid Integration Concerns

Industry and trade groups, including the U.S. Chamber of Commerce, are urging the EPA to postpone finalizing comprehensive guidance on integrating environmental justice (EJ) considerations into regulatory analysis. These groups emphasize the need to synchronize this guidance with related materials, including policies on cumulative risk assessment and public involvement in rulemaking. They advocate for coordinating updates and ensuring that final versions of associated documents are integrated before the EJ Technical Guidance is finalized.

Additionally, they call for a delay in the Science Advisory Board (SAB) review of the draft guide until these materials are incorporated, followed by a second round of public comment. An industry coalition submitted comments arguing that finalizing the EJ Technical Guidance prematurely, without considering feedback on related documents, would be counterproductive. They emphasize the importance of adhering to statutory authority and caution against federal overreach in rulemaking.

The industry’s concerns align with bipartisan criticism from state governments, emphasizing uncertainties regarding EPA’s authority to recommend EJ considerations in regulations. Various industry associations, including the American Petroleum Institute (API) and the American Water Works Association, call for enhanced industry involvement in the peer review process and emphasize the need for rigorous data evaluation and analysis in EPA rulemakings. The Chamber asks the EPA to provide examples of “how to evaluate quantitative and qualitative data in the assessment of EJ concerns.”

Moreover, they highlight potential affordability impacts and unintended consequences of implementing EJ guidelines, particularly for water utility systems funded primarily through local rates and charges. These groups stress the necessity for EPA to develop methods for assessing the distributional costs of regulations and to consider the economic impacts on ratepayers, especially in the context of environmental justice.

Administration Expands EPA Program for Water Infrastructure 

The EPA is expanding its Closing America’s Wastewater Access Gap Community Initiative to an additional 150 largely rural or low-income communities, aiming to provide technical assistance for water infrastructure funding programs. Launched as a 2022 pilot initiative in partnership with the USDA, the program assists underserved communities in accessing federal funding opportunities to address wastewater needs. The expansion, announced on February 13, will match interested communities with EPA technical assistance providers to develop community solution plans and access critical funding.

EPA Assistant Administrator for Water, Radhika Fox, highlighted the program’s impact in addressing basic water needs and expressed a commitment to restoring dignity and opportunity in underserved communities nationwide. The initiative aims to address a wide range of infrastructure needs, from upgrades to creating new water systems.