I thank the chairman. Mr. Speaker, I rise today in support of H. Res. 48, the rule for H.R. 351, the LNG Permitting Certainty and Transparency Act. During the 113th Congress, identical legislation to H.R. 351 passed the House of…
I thank the chairman.
Mr. Speaker, I rise today in support of H. Res. 48, the rule for H.R. 351, the LNG Permitting Certainty and Transparency Act.
During the 113th Congress, identical legislation to H.R. 351 passed the House of Representatives as H.R. 6, the Domestic Prosperity and Global Freedom Act. Long before its passage, the bill moved through the entire legislative process at the House Committee on Energy and Commerce. This process included a hearing as well as an eventual markup at the Subcommittee on Energy and Power. A subsequent full committee markup followed, and the bill was placed on the Union Calendar.
The House Committee on Rules then established H. Res. 636, the rule for consideration of H.R. 6. After that rule was adopted, the legislation was debated, amended, and ultimately passed the House of Representatives with an overwhelmingly bipartisan vote. The President did not issue a veto threat.
The energy renaissance that has swept across America over the last years has transformed the United States from an increasingly energy dependent Nation--beholden to the whims of OPEC--to our current position as the largest producer of oil and natural gas in the world.
This transformation has provided us with a historic and unprecedented opportunity not just to bolster our economy, but to also fully leverage our energy abundance on the international stage by selling a portion of our natural gas abroad.
Through this abundance of natural gas, America has an opportunity to significantly affect geopolitics if we enact smart policies. It could-- and should--be a game changer.
Allowing the export of liquefied natural gas, for instance, will create significant American jobs and wealth for the United States, enhance our energy security, and provide a reliable source of fuel to our allies, some of whom depend on the mood of Vladimir Putin to meet their energy needs.
Unfortunately, our policies have not kept pace with the industry's development. Producers seeking to export LNG face a constantly changing approval process which costs millions of dollars and takes years to navigate.
Not only does this undermine regulatory certainty, but with dozens of projects seeking approval, Washington is making it difficult for businesses to make the investment decisions needed to take advantage of this abundant resource. This delays job creation here at home and reduces our ability to positively influence global politics abroad.
My bill, the LNG Permitting Certainty and Transparency Act, aims to address this growing problem by cutting through the bureaucratic red tape and implementing a deadline on the Department of Energy to issue a final decision on LNG applications.
Given the amount of time that has already passed since many of the LNG export applications have been filed and their dockets closed, there is no more information to consider and no reason for DOE not to adhere to a deadline.
There is very real risk to inactivity. If Washington waits too long to move forward with export licenses, other countries with their own natural gas resources--Canada, Qatar, and Australia, to name three-- will step in to meet the demand. Our competitive advantage, along with the opportunity to create more domestic energy jobs and serve as a check on Russia, will be lost.
Numerous studies have found that LNG exports will create hundreds of thousands of American jobs, many of them in manufacturing, including the refining, petrochemicals, and chemicals sectors. ICF International estimates that these jobs will occur across the entire value chain, translating into roughly $1 billion in new wages for American workers over a 6-year period.
Export terminals will also generate millions of dollars in new tax revenue for Federal, State, and local governments, while increasing our GDP and lowering the trade deficit.
It is worth noting that this won't come at the expense of domestic consumers. The U.S. Energy Information Administration stressed that it expects increased overseas demand for LNG will be met by the development of new resources.
In fact, the DOE has concluded that each of the different export scenarios considered ``are welfare improving for U.S. consumers'' and would result in ``an increase in U.S. households' real income.''
The recent turbulence in Eastern Europe--and throughout the Middle East--has shown all too clearly that energy can be used as a geopolitical tool. Adding a new and reliable source of natural gas onto the world market will diversify our allies' energy sources and greatly reduce their vulnerability to a single monopolistic supplier.
I am proud to author this legislation. It is a job creator. It helps America in
leveraging the geopolitical stage across the globe. We have seen enough delay. I encourage my colleagues to support this legislation.
I thank the Chairman for yielding.
Mr. Speaker, right now, today, about 50 percent of Russia's revenue comes from taxes on oil and gas. About 80 percent of that resource goes through the Ukraine. The Ukrainian people are under tremendous pressure, as are other European allies, by the Russians.
Regardless of where U.S. natural gas is shipped, increasing supply and competition in the global marketplace will help provide international consumers with greater choice.
In fact, a representative of the U.S. State Department made a similar statement on the benefits of U.S. natural gas exports at a January 8, 2015, Atlantic Council forum. This is from the State Department:
Now, where the gas will go doesn't matter. The fact that we
have approved exports of natural gas has already had an
impact on Europe.
Just the fact that America is getting into the game has put the Russians on notice that our friends and allies and people that they are currently putting under pressure--the Ukrainians and others--are going to have a choice, and it is going to make a different conversation happen at the table.
Mr. Chairman, I hope that helped clarify it.