American Oil and Gas Reporter - October 2016 - 31

or trade permits to emit GHGs. He says the
cap-and-trade auctions have produced
much less revenue than anticipated, and the
California Chamber of Commerce has filed
lawsuits challenging whether SB 32 is an
actual tax that would be a violation of
Proposition 26. That measure, passed by
California voters, mandates any tax passed
by the legislature must pass by a two-thirds
majority in each chamber.
"Regulation is part of our makeup,"
Thomas reflects. "But in adopting these
more aggressive standards, the state is empowering a regulatory agency without the
most significant piece of the puzzle: the
details. How do we get there? Will it make
sense? God bless the legislators who got
this passed, but we still do not have a clearer road map than we had prior to passage."
Thomas points out that the White
House contributed to the governor's push
to pass the bill. Obama administration officials called members of the California
Assembly who had not shown support for
SB 32. On the state level, undecided legislators received calls from the attorney
general and House Speaker Anthony Rendon, D-Paramount, as well as the governor, Thomas reports.
The Heartland Institute warns that SB
32's passage will impose a financial
penalty on the state as businesses flee its
anti-business environment.
"The higher energy costs and increased
unreliability of the state's electric grid resulting from this law, should the state actually try to enforce it, are more nails in
California's economic coffin," the Heartland Institute contends.
The institute adds that to some extent,
meeting the new standards will be easy,
since much of the state's electricity is generated at facilities built and subsidized by
federal taxpayers in projects such as hy-

droelectric dams in the Pacific Northwest.
"It's easy being green when you impose
the environmental costs of your decisions
on people in other states, and the economic costs on people throughout the nation,"
the Heartland Institute says.
Methane Reduction
Brown also signed SB 1383, introduced
by Senator Ricardo Lara, D-Bell Gardens.
According to Lara's office, the bill requires
the California Air Resources Board to implement a strategy to reduce short-lived climate pollutants in the state by 2030, cutting black carbon emissions by 50 percent,
and methane and hydrofluorocarbon gases by 40 percent.
Thomas says CIPA's position on SB
1383 mirrors its stance on SB 32: Legislators are not providing direction for the
regulators who must implement their actions.
"There was a huge battle in committee
about this bill, and at the end, not only
were opponents confused, but the proponents-the author and the chairman of the
committee-all were," Thomas relates.
"That, in and of itself, probably was the
reason the bill should have been a two-year
bill, but the proponents of clean air and water, which we all want, have their own
thoughts. I think it was a sad testament on
our process, but given the climate, the bill
was successful."
California's anti-industry forces have
not yet revealed any strategies for the 2017
legislation session, Thomas observes,
adding they are unlikely to do so until January.
"The makeup of the legislature will
make some difference, but I anticipate the
advocates on behalf of the SB 32s of the
world will continue to push for clean air
and clean water. We will see," he says. ❒

U.S. House Legislation Delays
'High-Impact Rules' For Review
WASHINGTON-The U.S. House of
Representatives has passed legislation to
delay "high-impact rules" from taking effect until after court challenges have
been settled.
The Texas Independent Producers &
Royalty Owners Association reports the
House passed HR 3438, the Require
Evaluation before Implementing Executive Wishlists (REVIEW) Act on Sept. 21.
Earlier in the month, the House passed
HR 5577, the Innovation in Offshore
Leasing Act, which requires the Bureau of
Ocean Energy Management to begin conducting Internet-based offshore lease

sales, as well as legislation reaffirming the
rights of mineral owners in the Allegheny National Forest.
TIPRO says the REVIEW Act requires a federal agency to postpone the effective date of any high-impact rule pending judicial review. Under the bill, the association says, a federal rule would be allowed to take effect 60 days after being
published in the Federal Register if no one
sought judicial review of it during that period. HR 3438 defines a high impact rule
as any rule that the Office of Information
and Regulatory Affairs determines may
impose an annual cost on the economy of
OCTOBER 2016 31



Table of Contents for the Digital Edition of American Oil and Gas Reporter - October 2016

Contents
American Oil and Gas Reporter - October 2016 - Cover1
American Oil and Gas Reporter - October 2016 - Cover2
American Oil and Gas Reporter - October 2016 - Contents
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