Mr. Speaker, let me explain the problem we have and the need for this bill today. The bill is the exact same language that passed this House last Congress, and it came through our committee, the Energy and Commerce Committee. Now, what…
Mr. Speaker, let me explain the problem we have and the need for this bill today.
The bill is the exact same language that passed this House last Congress, and it came through our committee, the Energy and Commerce Committee.
Now, what this bill does is give the Department of Energy some deadlines to make a decision on our national interests--that is what it does--so we can do it. They have held those permits sometimes up to 2 years to make that determination.
If you have a free trade agreement with the United States, we can export natural gas to you. But they need to decide the national interests. I want the DOE to do that, but I also want to make a decision in very quick time.
We know who our friends are, we know who our adversaries are. We don't really want to send it to our adversaries, we want to send it to our friends. So that is DOE's job.
The reason we need this bill is that right now today, or yesterday, gas is $2.88 per million cubic feet. It was up about $4, which is still not great for a producer. But what we have been doing in south Texas is flaring natural gas. It is bad for the environment. It is bad for the people who produce it because they don't have a customer. And what we need to do is be able to export what we can't use.
In Texas we are very proud of Blue Bell ice cream. In fact, their advertising slogan is: ``We eat all we can and we sell the rest.''
I have a chemical industry, I have a utility industry that uses natural gas. They are using it. But we still have a lot of production. So why would we not use all we can in our country and sell the rest and make somebody else pay for those jobs that we have in our community? And that is the problem.
We know the price of oil is going down. But oil and natural gas sometimes come out of the same well. So that is why we need to make sure that we have the right, on a reasonable timeframe, to export natural gas to countries that we want to be friendly with. I would love to have a natural gas export right now to Ukraine. The infrastructure over there is not there. It could get there with some reversing pipelines.
H.R. 351 represents a bipartisan effort to legislate and warrant its approval.
We worked together on this bill, and it represents that hard work.
The bill is good for the economy, the climate, and the U.S. security interests. The United States has natural resources to become the largest exporter of LNG in the world. Our natural gas reserves can meet all our domestic natural gas needs and still have an excess capacity of 3 trillion cubic feet.
Before we discuss H.R. 351 it is important we clarify the LNG permitting process, just so there is no confusion. A project applicant must submit two separate applications: the first to the Department of Energy and the second to the Federal Energy Regulatory Commission,
I thank the ranking member. I appreciate it.
If the project sends the LNG to a country without a free trade agreement, then the DOE must issue a permit based on the public interest. These are very important determinations. However, LNG will not leave the United States with DOE approval only.
For a project to actually export LNG, in either case, the applicant must receive a FERC permit. FERC reviews the environmental impacts of the actual LNG facility. FERC conducts and reviews all environmental impacts to satisfy the requirements of NEPA. No company will export a single cubic foot of LNG without FERC approval. FERC's process takes 12 to 18 months and costs approximately $100 million.
We have worked extremely hard to protect the environment. It is the DOE non-FTA process that is the problem. The DOE currently has approximately 30 non-FTA permits awaiting decision. The DOE has held most of these permits almost 4 years. Even the DOE recognized this huge problem and tried to address the backlog last summer by changing the approval process. Unfortunately, the changes failed to expedite approval or provide any certainty to companies who are investing $100 million, and these are U.S. companies.
H.R. 351 resolved this issue only after it receives all environmental permits.
H.R. 351 would place a 30-day timeline for the DOE to issue a decision after the Federal Energy Regulatory Commission completes its environmental reviews.
Once again, we have protected the environmental review process. We have protected the public interest. And DOE, which held some of these applications 4 years--we cannot allow DOE to sit on these permits any longer. They must do their job and do it in a timely fashion.
Opponents of H.R. 351 say if all permits are approved, we will export more than 35 trillion cubic feet. Opponents say exports will double or triple domestic natural gas prices. Opponents say exports of that size will endanger our domestic industry, raise electricity prices, and have ruinous effects on our economy.
Mr. Speaker, I urge passage of the bill.
Mr. Speaker, I represent enormous petrochemical facilities, power generators, and workers.
I remember when domestic natural gas prices caused companies in my district to move jobs overseas.
If what opponents of H.R. 351 say were even remotely possible, I would be the first one to oppose this bill.
My constituents work at those facilities.
Those facilities pay taxes and fund the hospitals and schools in my district.
There are dozens of applications pending at DOE.
No more than a handful of projects will be constructed and ultimately export LNG.
But each project deserves a fair opportunity at review.
Each company deserves the opportunity to pursue financing in the capital markets.
The government should not make those decisions.
Each LNG facility costs billions, not to mention the jobs associated with pipeline construction, electric transmission, local services, etc.
I ask my colleagues to support H.R. 351 and support this bipartisan effort.