Hearing Wrap Up: Biden-Era Environmental Enforcement Weaponization Harms Small Businesses & Americans

WASHINGTON-Today, the Federal Law Enforcement Subcommittee held a hearing on "From Protection to Persecution: EPA Enforcement Gone Rogue Under the Biden Administration." Members discussed how the Biden Administration intensified the use of weaponized environmental enforcement to target businesses and citizens through overly aggressive consent decrees. The Subcommittee heard testimony from a small business owner who has been harmed by excessive federal consent decrees. Moving forward, the Subcommittee will conduct a comprehensive review of all regulatory agencies' law enforcement authorities to determine whether certain administrative powers should be curtailed.

Key Takeaways:

The Biden Administration supercharged weaponized environmental enforcement to target businesses and citizens through overly aggressive consent decrees.

• The U.S. Department of Justice (DOJ) and Environmental Protection Agency (EPA) inappropriately and aggressively utilized criminal enforcement actions under the Clean Air Act and other environmental laws that relied on intimidation and law enforcements raids more appropriate for hardened criminals, often imposing overly burdensome requirements that went beyond federal law.

• These enforcement actions represented a departure from fair regulatory practices and constituted an abuse of federal power against American businesses and communities.

• Justin Savage-Partner at Sigley Austin LLP-testified how the Biden Administration weaponized the EPA's charging authority: "EPA's criminal charging theory appears to have been a favorite weapon of the Biden Administration to pursue truck enthusiasts who, coincidentally, are overwhelmingly supporters of President Trump. Regardless of possible political motivations, the effects of the criminalization of aftermarket tampering cases are most felt by individuals and small entrepreneurs whose entire lives are put into jeopardy for conduct that EPA itself repeatedly characterized as resulting in civil liability only."

Small businesses and local communities suffered devastating economic consequences from excessive federal consent decrees that threatened livelihoods.

• Costly compliance demands from the Biden-era DOJ and EPA consent decrees often forced businesses to choose between bankruptcy and closure, eliminating jobs and destabilizing entire communities that depended on these employers.

• Kory Willis-the owner of Power Performance Enterprises, Inc-testified about his decade-long struggle with the EPA and DOJ over his company's vehicle tuning business. "My family and I spent several millions of dollars in legal and accounting fees, and hundreds or even thousands of hours of staff time responding to EPA's demands and trying to understand EPA's position on the sales of our company's tunes […] [In] May 2022 the Consent Decree was finalized. We simply did not have the money to fight the endless resources of the Federal Government and the DOJ's overly burdensome requests would have continued to plague my family and business."

• Justin Savage-Partner at Sigley Austin LLP-testified : "Small businesses and individual entrepreneurs bear the brunt of enforcement […] These are not companies who keep extensive legal teams on retainer or maintain sufficient funds to absorb years of extensive litigation or criminal investigations."

President Trump and his administration took decisive action to right-size environmental enforcement, reigning in overreach by federal agencies, but existing Biden-era consent decrees continue to impose harmful burdens on American businesses and citizens.

• Many companies remain trapped under previous agreements that could cause significant financial harm.

• Subcommittee Chairman Clay Higgins (R-La.) pledged to conduct a thorough review of this weaponization. "Such heavy-handed tactics are clearly aimed at intimidation. For this reason, the Subcommittee is conducting a thorough review of all regulatory agencies' 'badge and gun' authority to determine if rogue administrative agencies need their authorities curtailed.

Member Highlights:

Subcommittee Chairman Clay Higgins (R-La.) asked Kory Willis about his experience with weaponized EPA enforcement and the impact on his business.

Rep. Higgins: "Can you speak about the economic impact it has had on you? How much money did you end up paying into the EPA?"

Mr. Willis: "Yes, sir. And it was in excess of $3.1 million."

Rep. Higgins: "Have you estimated conservatively how much business you've lost over the last decade, you and your family?"

Mr. Willis: "Just the last five years on emissions compliant products, probably around $12 million. If we are talking full racing products, probably over $100 million."

Rep. Higgins: "Can you speak to what you paid counsel, what you've had to pay attorneys over the last decade?"

Mr. Willis: "Yes, sir, in excess of $7 million."

Representative Scott Perry (R-Pa.) highlighted how unelected EPA bureaucrats have imposed burdensome regulations on small businesses-regulations not grounded in sound scientific data.

Rep. Perry: "The EPA has been deputized so to speak by the American government to punish people under this wide-ranging purview which is defined by the bureaucrats that work at the EPA. The regulations that you have to abide by are made up and based on things called science that is not really science. The data they force on you Mr. Willis, with all these regulations, where did they get the data? We don't know. The federal government then goes to you and persecutes you. They want you out of business. How many days can you go through and sustain and pay your bills and pay your employees?"

Mr. Willis: "We are at the point of starting to lay off employees."

Click here to watch the hearing.