Regulations Watch – What to Expect from the Obama Administration in the Coming Months
While there are only 5 months left in President Obama’s second term, there is a tradition of so-called “midnight regulations”, regulations implemented between the November elections and January 20 when the new President is sworn in. This memo includes a list of some of the regulations that are expected to be released before or during that time period.
Metropolitan Planning Organizations
On June 27, 2016, the Federal Highway Administration and Federal Transit Administration jointly released a proposed rule on Metropolitan Planning Organization (MPO) Coordination and Planning Area Reform. This rule will require one MPO per Urban Area, a single set of planning documents, and the adoption of planning agreements between state transportation agencies and all MPOs in their states. The comment period closed on August 26.
More information can be found here.
Methane Emissions
The Environmental Protection Agency (EPA) has established new standards for methane emissions on hydraulic fracturing sites as well, as natural gas wells and processing sites. The agency expects this rule to lead to a 20-30% reduction in methane emissions from the energy industry. The EPA is not only requiring oil and gas companies to install equipment to detect and stop leaks at new drilling and processing sites, but is also requiring them to recapture methane emissions. The final rule was published in the Federal Register on June 3, 2016 and will go into effect after 60 days. Expect legal challenges from the industry to follow.
More information can be found here.
Offshore Air Quality
The Bureau of Ocean Energy Management (BOEM) has proposed regulations to require operators to monitor and track all major air pollutants released during offshore oil and gas development. Current regulations require the industry to monitor carbon monoxide, sulfur dioxide, and nitrous oxides emissions; the proposed regulations will expand that to include all major air pollutants, including carbon dioxide. Comments on the proposed regulation were due on June 20, 2016. BOEM is currently reviewing those comments in preparation for finalizing the rule.
More information can be found here.
Clean Power Plan
Although the rule was struck down by federal courts, the EPA is attempting to release pieces of the plan individually. The Clean Energy Incentive Program is one such iteration. It would give “emission reduction credits” to states that attempt to comply with the Clean Power Plan anyway. The comment period has been extended to September 02, 2016.
More information can be found here.
Medicare Part B Payments
On March 8, the Centers for Medicare and Medicaid Services proposed a rule to change Medicare Part B reimbursements for drugs and treatments that doctors provide in their offices (e.g., chemotherapy). The preliminary proposal includes a mandatory two-stage demonstration project. CMS indicates that the proposal will test new payment models and test different incentives (for both patients and prescribers) in prescribing treatments. Comments were due on May 9, 2016. Phase 1 is scheduled to begin 60 days after the final rule is published, while phase 2 is set to begin on January 1, 2017.
More information can be found here.
Implementation of the Medicare Access & CHIP Reauthorization Act (Doc Fix)
CMS published a proposed rule to implement 2015’s bipartisan permanent “doc fix” on March 27, 2016. The Medicare Access & CHIP Reauthorization Act (MACRA) makes three important changes to how Medicare pays doctors and creates a Quality Payment Program. These changes include ending the Sustainable Growth Rate (SGR), making a new framework for rewarding doctors for giving better (as opposed to just more) care, and combining the existing quality reporting programs into one new system. The proposed rule has an intended start date of January 01, 2017, but due to concerns from lawmakers, publication of the final rule may get pushed later into 2017.
More information can be found here.
Data Privacy
Comments were due on the Federal Communications Commission’s (FCC) proposed broadband privacy rule on May 27. The proposed rule requires that internet service providers allow customers to opt out of having their personal information shared. The Federal Trade Commission has been the primary agency on this issue, so lawmakers are concerned that the FCC is encroaching into an area where it doesn’t have authority.
More information can be found here.
Arbitration Clauses
The Consumer Financial Protection Bureau proposed on May 5, 2016 a rule that restricts banks’ ability to use pre-arbitration clauses to block consumers from joining class action lawsuits on bank accounts and credit cards. The proposed rule requires banks to clarify that customers are allowed to be part of a class action lawsuit in court. The comment period for the proposed rule closed the first week of August 2016.
More information can be found here.
TFG will monitor each of these proposed regulations and will keep you informed of any changes in their status.