House votes to repeal SEC anti-corruption rule for energy companies

Anti-pollution, ‘conflict mineral’ rules also on the chopping block

House Republicans on Wednesday voted to repeal an anti-corruption rule the Securities and Exchange Commission instituted last summer requiring energy companies to disclose the taxes and other fees they pay to foreign governments.

The vote came on the same day that former Exxon Mobil Corp. XOM-0.75% chief executive Rex Tillerson was confirmed as secretary of state. As Exxon CEO, Tillerson had lobbied against the so-called “extraction rule.”

Under the little-known but powerful Congressional Review Act, Congress can repeal any Obama administration regulations passed after June 16, 2016, and it also prevents similar laws from being enacted in the future. The extraction rule was born from the 2010 Dodd-Frank banking reform package, but faced a long legal battle and was not put into place until June 27, 2016.

The rule mandated oil, gas and mining companies to disclose payments made to foreign governments for development rights. Republicans and energy companies argued the regulation added costs and caused an unfair disadvantage on overseas projects. The SEC countered that it would “combat government corruption through greater transparency and accountability.”

Also using the Congressional Review Act, the House also voted Wednesday to repeal a late-Obama-era regulation preventing coal mines from polluting nearby streams, and on Thursday the House is scheduled to vote on a repeal of a rule restricting natural-gas drilling companies from burning off methane on public land. The Senate is expected to start voting on the repeals as soon as Thursday.

Separately, acting SEC Chairman Michael Piwowar on Tuesday took the first steps toward dismantling an Obama-era rule requiring companies to disclose their use of “conflict minerals” — essentially metals originating from war-torn parts of Africa. That rule applied to manufacturing companies, such as Apple Inc. AAPL-0.78% and General Electric Co. GE+6% , who use minerals such as gold and tungsten in their product supply chains.

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