New Biden environmental regulations 'failed' small businesses, top House Republican says

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FIRST ON FOX: House Small Business Committee Chair Roger Williams, R-Texas, is demanding answers from the Environmental Protection Agency (EPA) over a set of new federal proposals he claims "failed" to consider the potential harm to Main Street America business owners.

In a letter to the EPA Wednesday, just hours before a full committee hearing on EPA's regulations, Williams argued recent regulations targeting certain chemicals have costs small businesses more than $249.7 billion since 2021, coupled with millions of paperwork hours for businesses of all sizes.

"On day one, this Administration started wrapping Main Street — and the American economy — in red tape, and they haven’t stopped," Williams said in a statement to Fox News Digital. "We know the EPA is one of the worst regulatory offenders in all of government. … They seem determined to regulate some industries, like oil and gas, out of the marketplace. 

"For America’s economy to get back on track, the federal government needs to get out of the way and let Main Street work. More regulations will only serve to run our economy further into the ground." 

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Rep. Roger Williams, R-Texas, chairman of the House Small Business Committee, Oct. 24. (Tom Williams/CQ-Roll Call, Inc via Getty Images)

In the letter, obtained by Fox News Digital, Williams identified specific rules that have sparked concern among small business owners, such as the proposed ban on the commercial use of ethylene oxide (EtO), a chemical essential in the sterilization of medical equipment. Williams argues the ban could force small medical device manufacturers to adopt costly or less effective sterilization methods, potentially jeopardizing their operations and leading to financial strain.

"While larger entities may be able to afford to comply with this rule, small businesses may not be able to shoulder the costs and could be forced to shut down," Williams wrote. 

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Another regulation is the requirement for oil and gas companies to actively search for methane leaks in their facilities. If businesses do not comply, they could be fined.

"Additionally, the rule could require businesses to capture excess methane that is currently being released or flared," Williams wrote. "This would require a costly retooling. Industry has described this regulation as incoherent and indicated it would limit the ability of companies to innovate. Nearly 90 percent of all oil and gas extractors are small businesses, these rules will disproportionately increase costs for them, and may result in many small wells closing."

The EPA Building in Washington, D.C. (iStock)

Other regulations mentioned by Williams include those targeting perfluoroalkyl and polyfluoroalkyl substances (PFAS), measures to mitigate emissions of particulate matter and a proposed rule mandating carbon capture technology in power plants.

Industry associations such as the U.S. Chamber of Commerce, National Association of Manufacturers (NAM) and American Petroleum Institute (API) have previously warned of the potentially wide-ranging impacts of more restrictive particulate matter restrictions. In a September letter to EPA Administrator Michael Regan, those groups and 30 other industry associations said the regulations could lead to onerous permitting requirements that would "freeze manufacturing and supply chain investments."

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According to the American Action Forum (AAF), a center-right policy think tank led by former director of the Congressional Budget Office Douglas Holtz-Eakin, the administration has enacted 774 final rules, costing businesses $451.7 billion.

In the letter, the House Committee asked the EPA to provide the following information by the end of the month, for each of the regulations: 1) the estimated number of impacted small businesses, 2) the estimated additional compliance costs for small businesses, 3) the location where small businesses can access analysis on the rules' impact, and 4) a list of alternatives considered to mitigate the impact on small businesses.

A natural gas-fueled electricity-generating power plant near Hermiston, Ore.  (Education Images/Universal Images Group via Getty Images)

The Environmental Protection Agency (EPA) unveiled the regulations last week in a joint announcement with environmental activists, saying limiting particulate matter known as PM2.5 or soot would have health benefits for Americans nationwide. The rulemaking lowers the annual PM2.5 standard from a level of 12 micrograms per cubic meter to a level of 9 micrograms per cubic meter.

"Today's action is a critical step forward that will better protect workers, families and communities from the dangerous and costly impacts of fine particle pollution," Regan told reporters in a call. "The science is clear. Soot pollution is one of the most dangerous forms of air pollution and is linked to a range of serious and potentially deadly illnesses, including asthma and heart attacks."

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According to EPA, the regulations will prevent up to 4,500 premature deaths and 290,000 lost workdays while yielding up to $46 billion in net health benefits by 2032. And the agency further estimated that, for every $1 spent complying with the PM2.5 regulations, there could be up to $77 in human health benefits by 2032.

Fox News' Thomas Catenacci contributed to this report.