Madam Chair, I have said it many times this week, and I will say it again. The legislation before us today, H.R. 4606, the Ensuring Small Scale LNG Certainty and Access Act, will help the United States fully realize its economic potential…
Madam Chair, I have said it many times this week, and I will say it again. The legislation before us today, H.R. 4606, the Ensuring Small Scale LNG Certainty and Access Act, will help the United States fully realize its economic potential regarding small- scale liquefied natural gas exports and associated technologies.
This bill addresses current permitting concerns, but it is also forward looking. H.R. 4606 will help the United States to grow as a reliable, trusted trading partner. It can help reduce trade deficits, promote new job opportunities at home, and strengthen ties with our allies abroad.
Specifically, this bill provides that applications under the Natural Gas Act for the importation or exportation of small volumes of natural gas will be granted without delay, but only if they do not require an environmental assessment under the National Environmental Policy Act. This means that both FERC and DOE must continue to fully comply with NEPA regulations and that they must evaluate the potential direct and indirect impacts, consult with other agencies, and receive public input.
Importantly, this bill is the product of bipartisan compromise and work. During markups at the House Energy and Commerce Committee, Representative Gene Green and I worked together so that both sides of the aisle could support this commonsense legislation. I appreciate his hard work, along with the work of many of my other colleagues.
As a result, this bill has support from a diverse group of stakeholders, including the Center for Liquefied Natural Gas, the National Association of Manufacturers, the Laborers' International Union of North America, the American Petroleum Institute, and Citizens for Responsible Energy Solutions.
Now, as the Representative for rural eastern and southeastern Ohio, I have long recognized the benefits of excess natural gas exports. Because of the shale gas boom, new opportunities are emerging for Ohio and the surrounding States virtually daily, as ethane cracker plants and ethane storage hubs begin to take shape.
Reports show that this trend will only continue, as one study predicts that the region has sufficient ethane feedstock to support up to five ethane cracker plants.
These opportunities are huge and have become viable thanks to new technologies that have led to an increase in natural gas production. But it is also due to an increase in production resulting from the growing demand for excess U.S. natural gas.
In fact, natural gas production is at an all-time high, and reserves are so large that they are predicted to meet domestic demand for almost a century. Ohio alone reached new highs in October 2017, as natural gas production reached 5.5 billion cubic feet per day.
H.R. 4606 can play a role in furthering America's economic progress by allowing our domestic producers and gas providers to export small quantities of natural gas to neighboring countries in a more efficient manner.
Don't misunderstand this. There is an interest for U.S. natural gas in the Caribbean, Central America, and South America, although not in the quantities that the current large-scale domestic exporting facilities were built to address via conventional liquefied natural gas tankers.
This bill will help our job creators meet that demand and take full advantage of our economic opportunities throughout our Western Hemisphere. And, with the certainty provided by H.R. 4606, companies currently in operation or those exploring new small-scale possibilities will be incentivized to move forward with new investments with the increased certainty provided by H.R. 4606.
This is especially important considering that the Dominican Republic is the only country in the Caribbean with a free trade agreement that can get our excess natural gas easily. And, as Puerto Rico continues to rebuild after the devastating hurricane in 2017, increased shipments and availability of American small-scale LNG can help the island meet its energy needs.
H.R. 4606 will also better allow our domestic providers the opportunity to deliver a stable source of U.S. energy to countries currently relying on Venezuelan fuel oil, which has been used to gain influence within countries throughout the region.
This effort to increase U.S. energy opportunities within this area of the world is not new, as the previous administration also sought increased engagement through the creation of the Caribbean Energy Security Initiative. Similarly, the Department of Energy recently issued a final rule very similar to H.R. 4606.
Now I would like to quickly address a few concerns that we have heard about this bill during debate. Some of my colleagues have said that the bill is unnecessary because it would replicate a Department of Energy regulation that was recently finalized, while at the same time arguing that this bill would lead to an unrestricted natural gas export policy with dire consequences.
I disagree with both of those statements, as it is important for Congress to exercise its authority and not leave policy solely up to the administration, and this bill by no means promotes an unrestricted policy. What is telling about these conflicting statements is that they simply cannot both be true at the same time, and it leads me to question the sincerity behind the statements.
Additionally, I have heard arguments that this bill could allow companies to skip the review process for larger projects by splitting them into smaller pieces.
Now, these LNG companies are building to economies of scale. These are expensive projects. The financial viability of stacking or combining many small-scale trains is simply not viable, and the operating costs would surely cause the cost of gas to be uncompetitive in the global market.
Madam Chair, the benefits of natural gas exports are clear. As numerous Department of Energy studies and various independent studies have concluded, they are a net positive to our U.S. economy. These studies have found that LNG exports support thousands of American jobs, many of them within manufacturing.
In fact, the Department of Energy once again highlighted the benefits of LNG exports with a study it released in June. This study, which is in addition to four other studies commissioned by the DOE since 2012, presented additional data that demonstrates how
LNG exports are a net benefit to our economy.
With U.S. natural gas reserves as large as they are, and with new technological advancements allowing our producers to access an increasing amount of natural gas each and every day, it is imperative that the United States takes full advantage of this important and abundant energy resource.
H.R. 4606 is a step in that direction. It will strengthen U.S. geopolitical ties, increase job creation, and promote domestic economic growth as a result.
Madam Chair, I hope all of my colleagues will join me in supporting this important bipartisan legislation today.
Madam Chair, I rise in opposition to the amendment.
Madam Chair, this amendment adds an additional round of DOE hearing and public comment on proposed small-scale LNG exports. Unfortunately, this amendment is designed to undercut the important benefits of this legislation, and we simply cannot accept it.
H.R. 4606 was narrowly drafted with bipartisan input throughout the committee process, as the ranking member knows very well. In fact, at committee, I worked with Mr. Green and other Democrats on a bipartisan amendment that ensures that DOE and FERC must fully comply with NEPA and the Council on Environmental Quality's regulations under this bill. This means they must evaluate the potential direct and indirect impacts, consult with other agencies, and, most importantly, receive public input.
Not only has this idea been vetted through hearings and markup on the Energy and Commerce Committee, but, additionally, this concept has already been thoroughly vetted and subjected to a fully transparent rulemaking process at the Department of Energy, complete with public comment and input.
We simply want to put this in the right lane. It should be the Congress that is passing law, not putting it solely in the hands of the administration.
Today's amendment serves only one purpose, and that is delay.
The purpose of H.R. 4606 is to help the United States fully realize its economic potential regarding small-scale liquefied natural gas exports and associated technologies. It will strengthen U.S. geopolitical ties, increase job creation, and promote domestic economic growth as a result.
This amendment jeopardizes those goals and it denies nations in the Caribbean and Latin America the opportunity to have an inexpensive, reliable source of energy from right here in the United States.
Madam Chair, I urge a ``no'' vote on this amendment, and I reserve the balance of my time.
Madam Chair, I include letters of support in the Record.
CLNG, Center for Liquefied
Natural Gas,
December 11, 2017.
Hon. Greg Walden,
Chairman, Committee on Energy and Commerce, House of
Representatives, Washington, DC.
Hon. Frank Pallone, Jr.,
Ranking Member, Committee on Energy and Commerce, House of
Representatives, Washington, DC.
Dear Chairman Walden and Ranking Member Pallone: Regulatory
certainty is vital to U.S. LNG and bipartisan legislation
like the Unlocking Our Domestic LNG Potential Act (H.R. 4605)
and The Ensuring Small Scale LNG Certainty and Access Act
(H.R. 4606) take steps to provide a clear and straightforward
path for the industry. Providing a certain pathway for U.S.
natural gas to be sold abroad will create thousands of good
paying jobs right here in the United States, generate
millions in tax revenue for the federal, state, and local
governments, and supply our allies and trading partners with
a reliable, clean, safe source of energy.
The United States is awash with natural gas, with more
discoveries almost daily, and in order for the U.S. natural
gas industry to continue to be an engine for growth, reliable
exports offer a perfect solution. Legislation by Congress
that creates a more certain regulatory process enables our
country to capture this narrow window of opportunity to
export LNG internationally and sends a strong signal to our
allies and trading partners that the U.S. is committed to its
role as a global energy leader.
Bi-partisan support for LNG certainty highlights how
important the issue is. Policymakers from both sides of the
aisle can appreciate good paying jobs here at home and energy
choices for allies around the globe. Representatives Johnson
and Ryan have a long history of support for U.S. LNG and we
look forward to working with them and others in the future on
LNG issues.
We urge support for Representative Johnson and Ryan's
Unlocking Our Domestic LNG Potential Act and The Ensuring
Small Scale LNG Certainty and Access Act.
Sincerely,
Charlie Riedl,
Executive Director, Center for LNG.
Madam Chair, I have before me a letter from the Center for Liquefied Natural Gas. It says: ``The United States is awash with natural gas, with more discoveries almost daily, and in order for the U.S. natural gas industry to continue to be an engine for growth, reliable exports offer a perfect solution.''
They go on to say: ``Bipartisan support for LNG certainty highlights how important this issue is.''
I also have a letter here in front of me from LIUNA, and they say this: ``On behalf of the 500,000 members of the Laborers' International Union of North America, LIUNA, I want to express our support for H.R. 4606, Ensuring Small Scale LNG Certainty and Access Act.''
They go on to say: ``LIUNA believes in an all-of-the-above energy policy.''
Madam Chair, that is exactly what H.R. 4606 promotes.
I also have a letter here in front of me from Citizens for Responsible Energy Solutions. There is nobody any more concerned about our energy policy than the American people. We talk about it here all the time in Washington, D.C., oftentimes in political terms, ideological terms, but it is the American people who are going to benefit from the results of LNG exports, whether it is along the Ohio River or all across America.
This is a job creator. It is an opportunity creator. It strengthens our geopolitical ties. And we can't underestimate the strength of that geopolitical tie factor in what we are doing.
We have countries like Russia that are using their energy resources to hammer other countries, to use it as a leverage point to force them into obedience. The last thing that we want is for countries in the Caribbean and Latin America to have to face going to Russia or other countries to get their energy resources when they could be getting those from us.
Right here, this letter from Citizens for Responsible Energy Solutions says: ``On behalf of Citizens for Responsible Energy Solutions, CRES, I am writing in support of H.R. 4606, Ensuring Small Scale LNG Certainty and Access Act. CRES urges the House to pass this legislation.''
Madam Chair, I yield back the balance of my time.