Republican members of the U.S. Senate Banking Committee, including U.S. Sen. Pat Toomey (R-PA), are calling on the Biden administration to pause all financial regulatory efforts that target America’s energy security.
The senators made the request after reports indicated that the Securities and Exchange Commission (SEC) plans to propose its climate risk rule as early as next week. The Senators said the regulations would curtail domestic energy and make the U.S. more vulnerable to Russian aggression.
“We write to express concern about the potential damaging effects to national security from the unprecedented efforts of federal financial agencies to develop regulations that some intend to use for limiting U.S. energy producers’ access to credit and capital,” the senators wrote in a letter to Treasury Secretary Janet Yellen. “Such actions would begin to curtail the supply of domestic energy, leading to higher costs for American households and making our country and allies more vulnerable to the consequences of Russian aggression. The economic toll, as well as the destruction, casualties, and instability from Russia’s energy-based warfare are so significant that we urge you to immediately pause the development of all climate- and energy-related regulations within the Treasury Department and to urge all other federal financial regulators to follow suit.”
The Biden administration has said it is discussing easing the sanctions placed on hostile oil nations, such as Venezuela, to replace Russian oil and gas imports.
The senators asked that the administration delay all regulatory initiatives on climate change until a plan to protect America’s energy security can be developed.
“Most importantly, these efforts by financial regulators, coupled with the Russian invasion of Ukraine, jeopardize the need for energy security, both domestically and for our allies and trading partners,” the senators wrote. “Accordingly, we call on you and President Biden to instruct the federal financial regulatory agencies, including FSOC, to delay any regulatory initiatives on climate change and sustainability until the development of a detailed, comprehensive plan by the administration on energy security that takes into account the threat to global energy supplies from Russia and similar repressive regimes.”
Marcellus Shale, a natural gas coalition, tweeted its approval of the letter.
“Thank you, Sen. Toomey, for defending and promoting American energy,” the coalition tweeted Wednesday. “Policymakers and regulators should not pick winners and losers.”