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February 11, 2020
On Tuesday, January 28, the House Committee on Natural Resources Subcommittee on Energy and Mineral Resources held a hearing to discuss the importance of stricter public disclosure requirements for fossil fuel companies operating on public land. At the hearing, The Importance of Public Disclosure Requirements for Protecting Human Health, the Climate, and the Environment, witnesses provided testimony on the Transparency in Energy Production Act of 2020 (TEPA; H.R. 5636). The purpose of the bill is “to provide for the accurate reporting of fossil fuel extraction and emission by entities with leases on public land, and other purposes.”
According to the Bureau of Land Management, in 2018, the total amount of federal land leased for oil and gas in the United States was 25,552,475 acres (see Table 2). The United States Geological Survey (USGS) released a 2018 report detailing the greenhouse gas emissions associated with fossil fuel extraction on public lands from 2005 to 2014. The report found that in 2014, oil and gas extracted from federal land accounted for 23.7 percent of U.S. carbon emissions, 7.3 percent of methane emissions, and 1.5 percent of nitrous oxide emissions (USGS included emissions resulting both from the extraction and end-use combustion of the fossil fuels).
Expert witnesses testifying in favor of the bill asserted that the fossil fuel industry’s current reporting standards are inadequate. TEPA aims to increase transparency by requiring companies to use the Sustainable Accounting Standard for the Extractives and Minerals Processing Sector created by the Sustainable Accounting Standards Board (SASB). By enforcing the SASB guidelines, TEPA will compel fossil fuel companies, which have traditionally opted out of Environmental, Social, and Governance reporting, to share specific information and details on how they are using federal land.
In her opening remarks, witness Susan Mason, a partner at the Aligned Partners venture capital firm, stated that because TEPA requires companies to report based on SASB guidelines, the policy would create “common-sense” regulations for fossil fuel companies operating on public land. According to Mason’s testimony, more than 120 publicly traded companies follow the SASB guidelines, including some oil and gas companies. Mason testified that “TEPA does not mandate a change in the types of energy developed, but rather gives the American people the data they need to make informed decisions”—similar to the way companies must report to their shareholders.
Dr. Gretchen T. Goldman, Research Director for the Center for Science and Democracy at the Union of Concerned Scientists, spoke on the public health and environmental justice implications of TEPA. It is well established that people in poverty often face more environmental hazards, especially in regards to water and air pollution. Goldman asserted that “communities around the country have long been affected by the activities of fossil energy companies, enduring environmental hazards and health impacts without knowing precisely what is in the air they breathe or the water they drink.”
Dr. Goldman testified in favor of more transparent, timely, and easily accessible reporting, which must be written in a way that the average American understands how fossil fuel companies use public lands. Dr. Goldman also made several suggestions to improve TEPA in her written statement, including:
Victor Snover, the Mayor of Aztec, New Mexico, and a former U.S. Army Officer, talked about living, working, and representing a town in close proximity to oil and gas extraction on public lands. Snover echoes the public health concerns articulated by Dr. Goldman. Snover is a Junior Reserve Officers' Training Corps instructor, and at least half of his students at Aztec High School suffer from respiratory issues like asthma. Snover also notes that lack of reporting by the companies means that towns like Aztec do not receive the revenue these companies should be paying in fines for problems like methane leaks.
While Goldman, Snover, and Mason spoke to the benefits of SASB reporting guidelines for fossil fuel disclosures, witness Kenneth Stein, Policy Director at the Institute for Energy Research, argued against that aspect of TEPA. Stein believes that imposing SASB requirements means fossil fuel companies will be regulated by SASB instead of the government, which makes TEPA unconstitutional. He suggested that if stricter reporting regulations are needed, existing government agencies must be the ones to create and enforce them.
Statements made by committee members during the Q&A portion of the hearing indicated mixed feelings towards TEPA. Rep. Kevin Hern (R-Okla.), expressed his opinion that provisions made in “the [TEPA] bill would cripple our energy sector.” Rep. Ben Ray Luján (D-N.M.) disagreed, and shared his experience visiting an oil well and seeing firsthand the need for public disclosure. Rep. Luján visited an oil and gas well near Mayor Snover’s city with other members of the Natural Resources Committee in April 2019. When visiting the site, committee members were not only able to smell the methane emissions, but, when using a Forward Looking Infrared Camera, could also see them. Rep. Luján said the methane plume was “as large as anything you can imagine.” Rep. Luján added that TEPA “would simply require disclosure from oil and gas companies…[and] renewable [energy] companies…operating on public lands, so that the public knows what’s happening in their backyards.”
The Natural Resources Committee held a hearing on the use of public lands for renewable energy earlier this year. As indicated by both hearings, public lands present both a challenge and an opportunity to address the climate crisis.
Author: Uma Atre
Top-Rated Climate Nonprofit – 4-Star Charity