The House will use the Congressional Review Act to repeal the Securities and Exchange Commission’s (SEC) disclosure rule for resource extraction, which puts an unreasonable compliance burden on publicly-traded American energy companies operating at home and abroad that isn’t imposed on their foreign, state-owned competitors.
This rule, which closely mimics a regulation already struck down by the courts, will put American businesses at a competitive disadvantage to foreign-owned businesses from countries like Russia and China—and could even put American companies in danger.
The SEC estimates the rule will add roughly $1 billion in costs to the energy industry.
Who it Hurts
The SEC itself states that the compliance costs would result in “potentially diverting capital away from other productive opportunities,” depriving Americans of future innovations, investment, and job growth.
But this rule could cause more than just economic harm. The American Petroleum Institute, which represents hundreds of oil and gas operations, fears that this rule will endanger the safety of oil and gas employees. Many American energy companies operate in countries with high risks of terrorism. Forcing these companies to submit unnecessary documentation—including compromising information like the precise location, size, and importance of facilities abroad—could give terrorists all the information they need to stage and attack.
Why We’re Doing This
The bureaucracy is a threat to our
· and People
The House has already passed legislation to change the structure in Washington so the federal bureaucracy is subject to the people and so we stop getting the same bad results year after year. Now, we’re targeting specific harmful regulations and stripping them off the books.