News

All Updates


Aug 6, 2024
Press Release

Bicameral Leaders Call for Review of Cost-Shifting Drug Price Policy

Committee Leaders request GAO review CMS Part D premium stabilization program Lawmakers are calling on the Government Accountability Office (GAO) to review the Medicare Part D Premium Stabilization Demonstration recently announced by the Centers for Medicare & Medicaid Services (CMS), noting its dubious legality and the danger it poses to health care affordability for seniors. The effort comes as part of a letter to GAO from House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA), Senate Finance Committee Ranking Member Mike Crapo (R-ID), and House Ways and Means Committee Chair Jason Smith (R-MO).  Through new taxpayer-financed policy adjustments, the demonstration seemingly intends to deflate seniors’ premiums that are otherwise slated to increase dramatically following the counterintuitive, haphazardly-written Inflation Reduction Act’s drug price provisions. However, the agency has not produced any budgetary analysis and appears to lack a clear statutory basis or credible research goals for the proposal. Rodgers, Crapo, and Smith request GAO review the demonstration’s legality under section 402 of the Social Security Amendments of 1967; what budgetary analysis CMS undertook in developing the demonstration; and the estimated budgetary impact of the demonstration. From the letter: “We write to request that the Government Accountability Office (GAO) conduct an expedited review of the Part D Premium Stabilization Demonstration, as announced by the Centers for Medicare & Medicaid Services (CMS) on July 29, 2024. In response to the Inflation Reduction Act’s (IRA) problematic design features and rushed legislative process, the proposed demonstration employs arbitrary policy levers to achieve short-term objectives. The initiative lacks any budgetary analysis, clear statutory basis, or credible research goals. The integrity of the Medicare program and the taxpayer dollars that finance its benefits demand more than partisan aspirations to justify extra-statutory, eleventh-hour policy changes." [. . .] “[T]he policies advanced through the recently announced demonstration would simply shift costs from plan sponsors and enrollees to taxpayers, obscuring the law’s impacts without addressing their underlying drivers. Moreover, consideration of these types of programmatic changes should fall within the purview of the legislative branch. Instead, however, this agency action seeks to sidestep Congress, waiving statutory directives under the guise of a ‘demonstration project,’ with no meaningful research aims, budgetary assessments, or empirical rigor.” CLICK HERE to read the full letter.



Aug 1, 2024
Press Release

E&C Republicans Open Investigation into Allegations of Antisemitism at UC San Francisco

Washington, D.C. — In a new letter to the University of California, San Francisco (UCSF), House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA), Subcommittee on Health Chair Brett Guthrie (R-KY), and Subcommittee on Oversight and Investigations Chair Morgan Griffith (R-VA) press for information regarding antisemitic harassment and intimidation at UCSF and its associated medical centers under UCSF Health. The investigation comes as part of Speaker Mike Johnson’s (R-LA) House-wide  effort  to crack down on antisemitism on college campuses.  KEY EXCERPTS:   “As a recipient of federal funding—both through various U.S. Department of Health and Human Services (HHS) grants and Medicaid and Medicare reimbursements for health care services provided at UCSF Health medical centers—UCSF has an obligation to comply with federal law and to prevent and appropriately respond to discrimination and harassment.”  [...]  “The reports of antisemitic harassment and intimidation at UCSF and its associated medical centers coupled with the inadequate response by UCSF leadership is concerning to the Committee. Failing to act decisively to ensure a safe environment for all students, faculty, staff, and patients is a grave dereliction of your responsibilities as Chancellor of UCSF and UCSF Health." [...]  “Failing to comply with basic safety protections for members of the UCSF and UCSF Health communities or failure to respond appropriately to and prevent harassment and discrimination, no matter the cause, may be grounds to withhold federal funds from the university and its associated medical centers. Congress has an obligation to ensure compliance with Title VI. If Congress determines an institution of higher education is in violation, we may consider rescinding research and development funds previously appropriated. Similarly, if Congress determines a medical facility is in violation, we may consider rescinding the right to participate in federal health care programs.”  BACKGROUND :  An encampment in front of UCSF’s medical center has caused significant disruption to campus and health care operations, as well as great distress for members of the community, including health care professionals and patients.  Many Jewish health care professionals working at UCSF Health have also expressed concerns regarding their safety—including concerns of their private information being made public.  This fear is well founded, as there have been numerous antisemitic public statements by faculty, staff, and students at UCSF and/or UCSF Health, such as assertions that patients should fear Jewish doctors, false claims that Israel trains U.S. police to brutalize people of color, or statements that Israelis in the U.S., including students at U.S. universities and medical schools, who have served with the Israeli Defense Forces (IDF) should be tried for war crimes.  Hundreds of complaints of antisemitism and/or a hostile work environment have been made by employees and patients of UCSF and UCSF Health to the UCSF Office of Prevention of Harassment and Discrimination (OPHD), with confidential sources reporting that most complainants receive a response that these actions and statements fall under free speech protections.  CLICK HERE to read the full letter. 



Chairs Rodgers, Duncan, Carter Call Out Biden-Harris Administration for Failing to Reduce the U.S.’s Reliance on Critical Minerals from China

Washington, D.C. — House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA), Energy, Climate, and Grid Security Subcommittee Chair Jeff Duncan (R-SC), and Environment, Manufacturing, and Critical Materials Subcommittee Chair Buddy Carter (R-GA) yesterday sent a letter to Department of Energy (DOE) Secretary Jennifer Granholm urging the Department of Energy to prioritize the onshoring of our critical mineral supply chains following the Chinese Communist Party’s July 1 declaration that rare earth metals were the “property of the state.” CLICK HERE to read exclusive coverage by E&E News. KEY QUOTE “Critical minerals are essential to America’s economy and to America’s capacity to manufacture goods and high-tech devices. Many critical minerals are essential to the energy sector, as they are needed to manufacture solar panels, batteries, and electrical equipment. As the DOE is aware, the CCP announced limitations on gallium, germanium, natural and synthetic graphite last October. These critical minerals are vital for our defense and energy technologies and are listed as critical and at high risk of supply disruption. On November 21, 2023, the Committee on Energy and Commerce sent a letter raising security concerns over the CCP limiting exports of gallium, germanium, natural graphite, and synthetic graphite. Your response to that letter failed to address these concerns and lacked basic information to help Members of Congress assess the risks of America’s increasing dependence on CCP controlled minerals.” [...] “The administration should prioritize the onshoring of domestic mining and processing industry for these critical minerals and materials. The answer to a lack of mining and processing is not to extend credits to companies using minerals from a major geopolitical adversary that relies on child labor and exploitation.” Chairs Rodgers, Duncan, and Carter asked Secretary Granholm to answer the following questions by August 13, 2024: Are you concerned by reports that the Chinese government has declared rare earth metals property of the government of China? What actions will the DOE take in response to the Chinese government’s announcement? Please describe any actions DOE has taken to prioritize onshoring domestic mining and processing of synthetic and natural graphite. Please describe any actions DOE has taken to prioritize onshoring domestic mining and processing of gallium and germanium. How will DOE work to expedite projects to ensure a secure and stable supply chain of these critical minerals and materials given these recent announcements? What actions will DOE take to mitigate potential domestic supply shortages of these minerals? Were you consulted about the Treasury Department’s decision to extend the graphite exemption through 2027? Did you advise or recommend that the White House extend the graphite exemption through 2027? Please explain. CLICK HERE to read the letter to Secretary Granholm. CLICK HERE to read the November 21, 2023, letter to Secretary Granholm raising concerns over the CCP’s decision to limit exports of gallium, germanium, natural graphite, and synthetic graphite.



Jul 25, 2024
Press Release

E&C Leaders Ask DOJ, HHS for Information Regarding Unusual Process for Marijuana Rescheduling

Washington, D.C. — In a new letter to Attorney General Merrick Garland and Department of Health and Human Services (HHS) Secretary Xavier Becerra, House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA) and Subcommittee on Health Chair Brett Guthrie (R-KY) requested information related to rescheduling of marijuana.  KEY LETTER EXCERPTS :  “We write to express our concerns with the recent notice of proposed rulemaking titled ‘Schedules of Controlled Substances: Rescheduling of Marijuana,’ to transfer marijuana from Schedule I to Schedule III of the Controlled Substances Act (CSA). The circumstances surrounding this proposed rule are unusual, and we are concerned by the process that led to this determination.”  [...]  “We support research into innovative therapies to improve patient outcomes, but we are concerned with how the normal process was circumvented to achieve a result for political purposes and we have a number of unanswered questions.”  BACKGROUND :  History:   Marijuana is a psychoactive substance that has been listed in Schedule I since the CSA was enacted in 1970.  All substances in Schedule I are classified as having no accepted medical use and a high potential for abuse.  This means that the manufacturing, possession, and distribution of marijuana is illegal at the federal level, except for certain research approved by the Drug Enforcement Administration (DEA).  During the Obama administration in 2016, the DEA and HHS, acting through the Food and Drug Administration (FDA), conducted a multi-year review of whether to transfer marijuana from Schedule I to a lesser schedule. Both the DEA and HHS agreed that marijuana continued to meet the criteria to be considered a Schedule I substance.  HHS concluded that “[…] marijuana has a high potential for abuse, has no accepted medical use in the United States, and lacks an acceptable level of safety for use even under medical supervision.”  President Biden made a public statement on October 6, 2022, issuing pardons for all simple possession federal offenses of marijuana, requesting all Governors do the same with state level offenses, and requiring HHS and DOJ to begin the administrative process to quickly review how marijuana is scheduled under federal law.  While the administration has the authority to alter a substance’s scheduling status, it is bound by the CSA to consider factors, including whether a substance has a medical use and to determine its potential for abuse and dependence, prior to changing its scheduling status.  Process:   The DEA typically determines whether a substance has a medical use if it has been approved for marketing under the Food Drug and Cosmetic Act (FDCA) and by conducting a five-part test, which considers the following:  (1) there were adequate safety studies,  (2) the drug’s chemistry is known and reproducible,  (3) there are adequate and controlled studies,  (4) the drug is accepted by qualified experts, and  (5) there is widely available scientific evidence.  However, this proposed rule indicates that HHS notified the DEA that HHS disagreed with the existing process and decided to develop its own test to determine whether a substance has medical use under the CSA.  This test is comprised of two considerations:  (1) if there is widespread medical use of such a substance under the supervision of a licensed health care practitioner operating within a State-authorized program and,  (2) if so, there is credible scientific evidence to support medical use of such substance.  HHS analyzed marijuana by utilizing its own two-part test, determined it has a medical use, and therefore recommended to transfer marijuana from Schedule I to Schedule III of the CSA.  DOJ received HHS’s recommendation and declared that this new two-part test is sufficient to establish medical use, which is an unusual deviation from the typical process.  It is notable that the proposed rule states, “DEA has not yet made a determination as to its views of the appropriate schedule for marijuana,” seeming to indicate that the DEA is not yet convinced of the merits of this review.  Additionally, most of the professional organizations listed in the HHS “Basis for the Recommendation to Reschedule Marijuana into Schedule III of the Controlled Substances Act” have released position statements that either request more evidence or oppose using marijuana as medicine for their specialties.  Further Considerations:   To date, the FDA has not approved a New Drug Application (NDA) necessary to have satisfied the criteria required under the previous five-factor analysis, such as adequate and well-controlled studies proving safety and efficacy, for a drug product containing botanical marijuana to treat any medical condition(s); thus, it has remained a Schedule I drug without a currently accepted medical use.  This is misaligned from typical practice, as the presence of a marketing application approved to treat a certain condition or disease has been central to the FDA's determinations.  The Delta-9-tetrahydrocannabinol (THC) potency in marijuana is also continuing to increase.  According to the proposed rule, THC potency has spiked from about three percent in 1991 to 17 percent in 2017 and it notes, “[…] DEA anticipates that additional data on public safety risks, risks from acute and chronic marijuana use via oral and inhaled administration routes, and the impact of THC potency may be appropriate for consideration.”  The proposed rule also states, “the vast majority of professional organizations did not recommend the use of marijuana in their respective specialties; however, none specifically recommended against it, with the exception of the American Psychiatric Association, which states that marijuana is known to worsen certain psychiatric conditions.”  Further, HHS’s own report to Congress titled “Health Effects of Cannabis and Cannabinoids and Barriers to Research” states that “[m]ore research is needed to evaluate the therapeutic potential of cannabis and cannabinoids as a means of safely and effectively treating various indications […] it is also worth noting that the U.S. jurisdictions that have legalized the use of cannabis products for medicinal purposes have often done so with inadequate scientific research to support all allowable uses.”  CLICK HERE to read the letter.



Jul 25, 2024
Press Release

Bipartisan E&C Leaders Press WADA President for Additional Information About its Failure to Penalize Chinese Swimmers Who Failed Drug Doping Tests

Letter comes on the eve of athletes competing in the Paris Olympics and after WADA’s President refused to attend an Energy and Commerce Committee oversight hearing Washington, D.C. — In a new letter to World Anti-Doping Agency (WADA) President Witold Banka, bipartisan House Energy and Commerce Committee leaders pressed for answers regarding WADA’s handling of positive doping cases within China’s national swimming team ahead of the Tokyo Olympics. The letter contains questions that bipartisan Committee Members would have asked during a recent Subcommittee on Oversight and Investigations hearing , which Mr. Banka was invited to attend but refused to appear. Witnesses that did testify at the hearing included: Michael Phelps, American swimmer and Olympic gold medalist   Allison Schmitt, American swimmer and Olympic gold medalist   Travis Tygart , Chief Executive Officer, United States Anti-Doping Agency (USADA) KEY EXCERPTS:   “We write today to express our sincere disappointment at your refusal to accept our invitation to attend and provide testimony at our recent Subcommittee hearing. Members of Congress have important questions for the World Anti-Doping Agency (WADA) and are especially concerned about recent reports of your handling of dozens of cases of doping within the Chinese swimming team.  “WADA purports to maintain the integrity of sports by creating a fair and competitive sporting environment free from doping. As a U.S. taxpayer supported entity, WADA has a responsibility to the American people to ensure this integrity by enforcing international testing requirements. We believe WADA has fallen short of this important mission. ”  [...]   “ We are particularly concerned with the excessive deference being extended toward CHINADA—a state-funded operation with leadership deeply intertwined with the Chinese Communist Party (CCP), as current [Chinese Anti-Doping Agency] CHINADA director Li Zhiquan also serves as a Committee Secretary for the CCP. At a meeting in 2023, Zhiquan called on CHINADA employees to be 'loyal to the party' and to 'hold high the great banner of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era.' Furthermore, WADA’s reported sponsorship arrangement with ANTA Sports—the Chinese athletic company sponsoring the Chinese Olympic Committee and China’s national swimming federation—could be perceived as a conflict of interest. Since WADA is expected to uphold and maintain international anti-doping standards, WADA’s apparent lack of skepticism and failure to enforce the rules against CHINADA is troubling. While we are aware that WADA has opened an investigation, we are concerned that international scrutiny was necessary to force due diligence that should be routine .”  [...]  “This incident unfortunately reinforces our concern that WADA appears to be reverting to its previous poor management practices.”  [...]  “With the Paris Summer Olympic Games Opening Ceremony just a day away , the Committee seeks to better understand the circumstances surrounding WADA’s decision not to appeal the decision to clear the twenty-three swimmers who tested positive for trimetazidine.”   BACKGROUND :  In January 2021, 23 Chinese swimmers (“23 swimmers”) tested positive for trimetazidine, or TMZ, a banned substance improperly used to increase stamina and hasten recovery times.  Three months after the positive tests, CHINADA initiated an investigation into the source of the TMZ and by June 2021 claimed the athletes ingested the banned substance through food tainted in a hotel kitchen.  According to reporting, Chinese investigators “offered no explanation […] for how a prescription drug available only in pill form had contaminated an entire kitchen.”  In reliance on “external legal advice” and its science department, WADA determined that CHINADA’s claims were “plausible” and chose not to appeal the decision or further investigate the matter.  Three of these Chinese swimmers went on to win gold medals at the Tokyo Olympic Games in July of 2021.  China has selected 11 swimmers that tested positive for TMZ before the Tokyo Games to compete in the upcoming Paris Games.  In a strikingly similar case, Kamila Valieva, a Russian figure skater, also tested positive for the banned substance TMZ during the 2022 Beijing Olympics.  The Russian Anti-Doping Agency (RUSADA) issued a provisional suspension but was quickly cleared by RUSADA’s discipline board, since Valieva claimed she ingested the substance by mistake through a contaminated source.  Rather than simply accept RUSADA’s contamination explanation, WADA appealed the decision and ultimately, Valieva received a four-year ban from competition and was retroactively stripped of her gold medal. The letter was signed by Committee Chair Cathy McMorris Rodgers (R-WA) and Committee Ranking Member Frank Pallone, Jr., (D-NJ), Subcommittee on Innovation, Data, and Commerce Chair Gus Bilirakis (R-FL) and Ranking Member Jan Schakowsky (D-IL), and Subcommittee on Oversight and Investigations Chair Morgan Griffith (R-VA) and Ranking Member Kathy Castor (D-FL). CLICK HERE to read the full letter.



Jul 25, 2024
Press Release

E&C Republicans Press HHS and NIH over Withheld Documents About Risky MPVX Experiment at NIAID, Threaten Subpoena

Washington, D.C. — In a new letter to Department of Health and Human Services (HHS) Secretary Xavier Becerra and National Institutes of Health (NIH) Director Monica Bertagnolli, House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA), Subcommittee on Health Chair Brett Guthrie (R-KY), and Subcommittee on Oversight and Investigations Chair Morgan Griffith (R-VA) requested documents and transcribed interviews related to an approved MPVX experiment.  The letter comes after the Committee released an interim staff report on the experiment as well as an NIH reform framework . It notes that a failure to produce the requested documents by August 8, 2024, may lead to issuance of a subpoena to compel compliance. HHS and the NIH continue to withhold critical documents requested by the Committee last year.  KEY EXCERPT :  “For nearly a year and a half, the Department of Health and Human Services (HHS), the NIH, and NIAID misled the Committee. Both HHS and the NIH told us a risky MPXV research proposal at the NIAID had not been “'formally proposed' or 'planned' when in fact this project was submitted and received approval before the NIH’s Institutional Biosafety Committee (IBC) on June 30, 2015, as documented in written meeting minutes. The misleading statements were included in the following communications to the Committee:  Letter from the HHS Assistant Secretary for Legislation dated April 26, 2023.  Letter from Dr. Bernard Moss to Chair Rodgers, dated June 30, 2023.  Written statements presented at the September 21, 2023, meeting between Committee staff and NIH/NIAID officials from Dr. Bernard Moss, Dr. Steven Holland, NIAID Director of the Division of Intramural Research, and Jeffery Potts, Chief of the Biorisk Management Branch within the NIH Division of Occupational Health and Safety.  “This deception is unacceptable and has led the Committee to conclude that NIAID cannot be trusted to oversee its own research of pathogens or determine whether an experiment poses enhanced risks of a potential pandemic or other serious public health outbreak.”  [...] “NIAID’s lack of candor to this point suggests that it cannot be trusted to oversee the research projects that it funds. Therefore, this Committee will explore policy options to address this inherent conflict of interest and lack of transparency.”  ADDITIONAL BACKGROUND :  A new strain of MPXV has recently emerged that increases the risk of this disease causing a major public health outbreak or a potential pandemic. Since January, the Democratic Republic of the Congo has reported more than 4,500 suspected mpox cases and nearly 300 deaths, numbers that have roughly tripled from the same period last year, according to the World Health Organization.  Congo recently declared the outbreak across the country a health emergency. An analysis of hospitalized patients suggests recent genetic mutations are the result of continued transmissions in humans.  CLICK HERE to read the letter.



Jul 25, 2024
Press Release

E&C Republicans Open Inquiry into NTIA’s Online Domain Name Registry Contracts Ahead of Renewal

Washington, D.C. — In a new letter to the National Telecommunications and Information Administration, House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA), Subcommittee on Communications and Technology Chair Bob Latta (R-OH), and Subcommittee on Oversight and Investigations Chair Morgan Griffith (R-VA) requested information about the agency’s internet domain name registry agreement with Verisign, Inc. (Verisign). BACKGROUND :  The NTIA represents the United States government on the Governmental Advisory Committee of the Internet Corporation for Assigned Names and Numbers (ICANN), the multi-stakeholder, not-for-profit entity that was founded in 1998 to coordinate the Internet domain name system, among other Internet management-related activities. Since 2001, Verisign has operated the .com and .net domain name registries.   Verisign manages the .com registry under two agreements—a .com Registry Agreement between ICANN and Verisign and a Cooperative Agreement between the NTIA and Verisign.  Both of these agreements are in place through November 30, 2024.  As the expiration dates of these agreements approach, some have suggested that the NTIA should reassess certain aspects of both agreements.   Under the Cooperative Agreement’s terms, it will automatically renew on November 30, 2024, unless Verisign provides written notice of non-renewal within 120 days of its expiration.   The Department of Justice has previously recommended ICANN hold a competitive bidding process for renewals of registry agreements.   The current agreement, as amended, has allowed Verisign, with ICANN’s agreement, in each of the last four years of every six-year contract period, to increase the maximum price Verisign charges for yearly registration or renewal of a .com name by up to seven percent over the maximum price it charged in the previous year.   Verisign has since instituted a price increase of the maximum amount in every year it was allowed to do so.   KEY LETTER EXCERPT :  “With both a role in advising ICANN and as a party to the Cooperative Agreement, the NTIA bears responsibility for supporting a domain name system that enables the growth of online commerce. Both individual consumers and businesses depend on responsible management of the .com system. Monopolistic elements and excessive domain name price increases stifle the ability of potential .com registrants to conduct business online.  “As such, we seek more information about the NTIA’s process in considering the renewal of both the Registry Agreement and the Cooperative Agreement.”  CLICK HERE to read the letter. 



Jul 24, 2024
Hearings

Chair Rodgers Opening Remarks at FERC Budget Hearing

Washington D.C. — House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA) delivered the following opening remarks at today’s Energy, Climate, and Grid Security Subcommittee hearing titled “The Fiscal Year 2025 Federal Energy Regulatory Commission Budget.”    “I am pleased that all five commissioners are here today to offer their testimony. Welcome back to Chairman Phillips and Commissioner Christie. “I would also like to offer a warm welcome to FERC’s newest members, Commissioners Rosner , See, and Chang. “FERC was established by Congress as an independent agency within the Department of Energy through the Department of Energy Organization Act of 1977. “While FERC is an independent agency, it still answers to Congress and must carry out the mission that Congress directs it to. “Congress established FERC as an economic regulator, to ensure that electricity, natural gas, and oil is delivered to the American people safely, securely, and at a reasonable price. “In order to achieve this, we need solutions that bring down costs for Americans, who are currently suffering under the burden of exploding costs across the board, including rising electric and utility rates. “Expanding energy with an all-of-the-above strategy will ensure Americans won’t have to worry about rationing energy in the summer or winter months or having to make tough choices about whether to pay the electric bill or buy groceries for their family.” CHALLENGES FACING AMERICA’S ENERGY SYSTEMS “That requires that FERC adhere to its core mission, especially as America’s energy and economic security is increasingly under attack by the Biden Administration and their radical rush-to-green agenda. “Over the last four years, this administration and Democrats have wreaked havoc on our nation’s economy, energy prices, and our grid and pipeline infrastructure. “They have chosen to prioritize the interests of radical environmental activists at the expense of the American people, eliminating jobs and investments for American energy workers, making us dangerously dependent on the Chinese Communist Party for our energy supply chains, and forcing the early retirement of our most affordable and reliable power plants. “Given their independence and mission, FERC should be stepping up and taking action to protect consumers. But sadly, it seems that FERC has lost sight of its mission. “FERC has the responsibility to ensure that rates for the interstate transmission of electricity and natural gas is 'just and reasonable.' “It also has a responsibility to issue timely permits for pipelines, hydropower projects, and LNG export facilities when they are in the 'public interest’ of Americans. “The commission must do more to insolate itself from the Democrat’s ‘rush-to-green' agenda and refocus on the core Congressionally directed mission.” ENERGY PRICES FOR AMERICANS “FERC also recently announced a new transmission rule, which advanced along partisan lines. “The new rule will raise energy prices and trample on states’ authority over their energy infrastructure. “It will force some states to shoulder the costs for transmission lines with no actual benefits for their own communities, especially in rural areas. “The commission has also slow walked permitting for pipelines and LNG facilities, which directly impacts the supply and price of natural gas. “At a time when more than half of the nation is at elevated risk of blackouts, we need to do more to unleash American energy, rather than throttle it. “That starts with meaningful infrastructure permitting reforms that reduce energy costs for Americans and ensure the U.S. can reach its full energy potential.” LOOKING FORWARD “I cannot say this enough: energy is foundational to everything we do. “It’s what keeps the lights on, heats our homes, and powers our hospitals, businesses, and transportation. “Access to affordable, reliable energy over the past century has raised our standard of living, driven technological innovation, and improved the health and wellbeing of all Americans. “We need to continue protecting and building on that legacy. “Today’s hearing is an opportunity for Members to hold FERC accountable and understand how recent actions, like their new transmission rule, will impact people’s financial security and our nation’s energy security.”



Jul 24, 2024
Hearings

Subcommittee Chair Duncan Opening Remarks at FERC Budget Hearing

Washington D.C. — House Energy and Commerce Subcommittee on Energy, Climate, and Grid Security Chair Jeff Duncan (R-SC) delivered the following opening remarks at today’s hearing titled “The Fiscal Year 2025 Federal Energy Regulatory Commission Budget.”  “Thank you to the five commissioners for appearing before the Energy, Climate, and Grid Security Subcommittee to discuss the recent activities of the Federal Energy Regulatory Commission.  “Chairman Phillips and Commissioner Christie, it is good to have you back. Commissioners Rosner, See, and Chang, congratulations on your recent confirmations.  “Chairman Phillips, I’d like to take a moment to commend you for your efforts to clear some of the backlog of major natural gas pipeline projects, as well as your recent vote in support of U.S. LNG exports.”   RETURNING FERC TO ITS CORE MISSION   “America is blessed with significant natural resources, and FERC plays a key role in dictating the trajectory of our energy economy. “Despite our abundance of fossil fuel, nuclear, and renewable energy resources, consumers have been hammered by soaring energy costs, particularly electricity. “The latest inflation data from June shows that electricity price Inflation exceeds the Consumer Price Index by 47 percent, and electricity rates have increased by approximately 20 percent since President Biden took office. “FERC’s mission is to, and I quote, '[a]ssist consumers in obtaining reliable, safe, secure, and economically efficient energy services at a reasonable cost through appropriate regulatory and market means, and collaborative efforts.’  “Despite the positive steps forward on natural gas pipelines and LNG facilities, we are concerned the Commission is failing to adhere to this mission in other aspects.”  GRID RELIABILITY   “No portion of FERC’s mission lends itself to being an environmental regulator.   “Yet, we are concerned the Commission has strayed from its responsibility as an economic regulator, to an entity focused on assisting the build-out of so-called 'green-energy' technologies. “This is happening despite continued alarms from the North American Electric Reliability Corporation (NERC) and grid operators. “NERC’s 2024 Summer Reliability Assessment highlighted five regions of the country that are at risk of insufficient operating reserves in above-normal weather conditions. Grid operators around the nation are sounding the alarm.”  FERC ORDER 1920   “FERC’s recent Order 1920 on regional transmission planning and cost allocation—which Energy and Commerce Republicans have opposed, will drive up costs and make the grid less reliable. “I understand we will hear a different opinion on the Order from our Democratic colleagues today. That is fine, this Committee is a place of debate. “However, it is important to clarify that a recent letter, sent by 33 State Utility Commissioners supporting Order 1920, represents only a small fraction of the 238 utility regulators around the country. “One of Republicans’ main concerns with Order 1920 is that it pursues a skewed 'categories of factors' approach to transmission planning. Prioritizing blue-state renewable portfolio standards, 'green’ power subsidies designed to shift the generation mix, corporate emissions reduction commitments, and the Biden administration’s goal of achieving a carbon-free power sector by 2035. “The ultimate purpose here is clear — prioritize those projects meant to serve an environmental agenda while creating a set of seven broad benefits designed to assist transmission developers in socializing costs across a broader rate base.”  TRANSMISSION   “Republicans are not opposed to critical transmission projects that are needed to keep the lights on and utility bills affordable. “However, we are opposed to agency actions that will raise prices on consumers without reliability or cost benefits. “Transmission is an increasingly costly component of electricity rates. “The nation’s largest grid operator, PJM, has reported that the transmission component of wholesale power costs has tripled over the last decade and now makes up almost one-third of wholesale power costs. “Order 1920’s 'categories of factors' for transmission planning skirts this reality by not mentioning a factor every member of Congress and Public Utility Commissioner should care about — reducing costs on ratepayers.” EPA REGULATIONS AND GRID RELIABILITY “This concerning transmission planning policy is occurring in concert with a slew of EPA regulations that will result in reliable generation closing before the end of its useful life. “Members of the Committee on Energy and Commerce have heard time and again how EPA’s actions such as the Clean Power Plan 2.0, revised particulate matter standard, interstate transport for ozone, mercury and air toxics rule, coal ash disposal, and effluent limitation guidelines will increase costs on utilities, push them to retire reliable assets, and ultimately increase energy costs on the American people.   “Chairman Phillips, publicly you have emphasized that you care deeply about affordability and reliability.  “I take you at your word and view this as an opportunity to have a candid discussion about how FERC’s actions are impacting these two essential goals.”