Natural Gas Pipeline Permitting Reform Act
Mr. Chairman, I thank Chairman Whitfield and Chairman Upton for helping me work this bill through our committee. It is great to have it on the floor today. We now have a bipartisan piece of legislation aimed at making simple, commonsense…
Mr. Chairman, I thank Chairman Whitfield and Chairman Upton for helping me work this bill through our committee. It is great to have it on the floor today. We now have a bipartisan piece of legislation aimed at making simple, commonsense reforms to the natural gas pipeline permitting process.
Rather than eliminating environmental regulations and permits, H.R. 1900 takes a very reasonable approach by requiring agencies involved in the permitting of natural gas pipelines, simply requesting that they finish their work in a timely manner.
The legislation builds off reforms made in the Energy Policy Act of 2005, which placed the Federal Energy Regulatory Commission as the lead agency for interstate natural gas pipelines.
As we have heard this morning, natural gas is becoming a dominant force in the electricity generation and manufacturing sectors. It is critical that pipeline construction can take place through a modernized permitting process, and that is what this bill aims to do.
The current interstate natural gas pipeline permitting process, established in 2005, is already in need of updating because of the enormous shale gas boom. H.R. 1900 makes changes to the interstate natural gas pipeline permitting process by simply putting in place statutory deadlines for each of the permitting agencies to complete their work. This is pretty reasonable. We are simply asking agencies to do what the law requires them to do. They can say ``yes'' to a permit, they can deny the permit, but they can't sit on it. They have to do their homework. They have to get the job done.
FERC is already the lead agency for coordinating environmental review of interstate natural gas pipelines, and as FERC testified in front of the Energy and Commerce Committee earlier this year, the deadlines imposed by H.R. 1900 are reasonable. In fact, FERC asked for a couple of changes in the legislation, and in each case we made those changes at their request.
If, after H.R. 1900 were to become law, an agency doesn't complete its work, the permit would automatically be approved by statute. I have heard others say this is unprecedented, but that is simply not the case. There are numbers of examples all throughout the Federal code where statutory approvals of environmental permits are deemed approved in the absence of the agency saying to the contrary.
I can't imagine anyone saying that this legislation is radical or unprecedented. More importantly, I can't see that they could claim that it is unnecessary. To my left you can see the impact of the absence of natural gas infrastructure all across the country. Frankly, in Kansas, we are in pretty good shape, but on the east coast, here in the Northeast where I am standing today, and on the west coast, you see enormously high natural gas costs: 24 percent above the national average in New York; 20 percent above the national average in Arizona; 67 percent above the national average in Maine; and 68 percent above the national average for the cost of natural gas in the State of Florida. We are seeing these prices rise because we don't have infrastructure development adequate to meet the needs of manufacturers and consumers in these places.
The New York Times, that bastion of conservatism, wrote the following, saying that FERC was ``concerned about increasing reliance on natural gas-fuel generators at times when there is an increasingly tight availability of pipeline capacity to deliver natural gas from the south and the west to New England.''
The Boston Globe, writing about pipeline projects in New England, said that the projects come ``as New England struggles to address growing demand for natural gas and supply constraints created by tight pipeline capacity. Those constraints have led to shortages and price spikes during the peak demand periods, such as extended winter cold snaps, helping to drive the region's already high energy costs even higher.''
The New York Times and the Boston Globe recognize the need for H.R. 1900.
This is not a manufactured crisis or bill in search of a problem. This is a real issue with real consequences for jobs in America and for average working families all across our country. The bill will give certainty to natural gas pipeline developers that invest in projects which could transport affordable energy to consumers all across the Nation.
I urge my colleagues to vote in favor of H.R. 1900 and address a very real issue impacting consumers and manufacturers all across the country.
Mr. Chairman, a couple of points are worth noting to make sure that everybody understands exactly what we are up against.
There has been some suggestion that this is unnecessary, and maybe in the eyes of some in Washington, some political officials, it is unnecessary; but the people who this matters to--consumers, manufacturers all across the country--know that this is a necessary piece of legislation. The National Association of Manufacturers has said that this is something that would be important to creating manufacturing jobs for families all across the country. The Chamber of Commerce has similarly made this comment.
It was earlier stated that some folks were unaware of union support for this legislation. I want to make sure that everyone is fully aware that the Laborers' International Union of North America, the United Association of Plumbers and Pipefitters, and the operating engineers have all been supportive of H.R. 1900 and the importance of energy infrastructure expanding all across our country.
Finally, there has been this idea that FERC approves 90 percent of the permits. It has been repeated time and time again. It is just factually incomplete. It is like, if you like your health insurance plan, you can keep it. Technically perhaps true in the most narrow sense, but in reality, it is not the case that the Federal Energy Regulatory Commission approves 90 percent of all permits or that they are all approved. FERC is but one of many, many agencies that has the authority to approve and deny permits. So this 90 percent number that continues to be thrown around is just false. We don't have 90 percent of all folks seeking to build pipelines being able to build those pipelines in a timely fashion. They are being delayed.
There is real demand for this. There is demand from the New England Ratepayers Association. There is demand in States like Florida, where the natural gas rates are 60 percent higher than the national average. This is a real need. This is a real challenge.
And if we do this, if we get H.R. 1900 passed, all we are simply saying is do your job. Finish the process. If you decide that the permit shouldn't be built, any of these agencies can deny that permit being built. That seems fine. We are not denying any agency the capacity to deny a permit. But do the work. Tell these folks that, No, you are not going to get it, and then allow the process to move forward.
These unions, these associations, these real hardworking families need natural gas at an affordable price to be delivered to them, and H.R. 1900 will help achieve that objective.
Mr. Chairman, I rise in opposition to the amendment.
Mr. Chairman, the EPA already asserts that it has authority to regulate greenhouse gas emissions--and methane is defined as a greenhouse gas.
The EPA's New Source Performance Standards capture GHG emissions above a certain threshold. Permits are already required for facilities whose emissions are anticipated to be above that threshold. The EPA's permitting process should be the forum for this decisionmaking.
FERC's primary role, rather, should be as an economic regulator--the same way that it is today, and the same way it would be after H.R. 1900 would become law. It would want to defer environmental matters like this to the appropriate agency, which would be the EPA.
The amendment is structured such that the determination would have to be made before the NEPA analysis would begin. In other words, when the FERC ``complete'' application is filed and FERC is put into the role of determining methane ``best practices'' rather than EPA. This puts the cart before the horse. Such decisions on methane emissions should be made as part of the EPA permitting process.
Regarding methane emissions in general, the industry has every incentive to control methane leaks. Escaping methane is escaping product--something they do not want to happen. That means losses for their businesses.
This amendment would add unnecessary requirements to a problem that is already being addressed. I urge my colleagues to vote ``no'' on the Tonko amendment, and I yield back the balance of my time.
Mr. Chairman, I rise in opposition to the amendment from the gentlewoman from Florida (Ms. Castor).
Mr. Chairman, there has been reference that Ms. Castor presented relating to what the industry wants that says this will actually mess it up. It will make pipeline permitting take longer.
Let me read for you what was written in a letter to me on November 14 of this year from that industry association. This is a letter from INGAA, signed by Mr. Santa, the president and CEO, who said:
The Energy Policy Act of 2005 attempted to coordinate the
permitting of new natural gas pipelines by designating FERC
as the lead agency under NEPA and granting FERC the authority
to set deadlines for permitting agencies to act on pipeline
actions. EPAct
2005, however, did not confer upon FERC the authority to
enforce such deadlines. As a result, permitting agencies
routinely ignore them.
It is critical that pipeline expansion keep pace with
demand in such regions as New England. A clear, timely review
of permits associated with proposed pipeline projects is
critical to meeting these goals.
The industry is full-throatedly in support of making sure
that H.R. 1900 becomes law, and this amendment would prevent
the key provisions of that from happening.
We know we are seeing skyrocketing prices. The worst residential price increases in the country are in the gentlewoman's home State of Florida, where natural gas is now $15.43 an mcf--68 percent above the natural average in the home State of the gentlelady who has offered this amendment.
Part of this enormous price increase in Florida and in other States is a direct result of insufficient pipeline capacity to keep up with production and demand inside the State of Florida--and that is great. I am glad there is demand in Florida. We now just simply need to get them affordable energy so they can continue to grow jobs for Florida families.
In July of this year, the Energy and Commerce Committee held a hearing on H.R. 1900, where multiple stakeholders testified, including NextEra Energy, a Florida-based energy company which, in addition to being the largest wind company in North America, is also one of the Nation's largest purchasers and consumers of natural gas power for electric power generation.
Regarding the possibility that an agency might ultimately choose to deny an application because of H.R. 1900, something that this amendment is offered to make sure doesn't happen, ostensibly, NextEra stated the following in its testimony:
In infrastructure development, a timely ``no'' is much
preferable to an interminable ``maybe.''
That is, we have folks who just simply need certainty. They need answers.
The gentlewoman from Florida talked about increased litigation. I am thrilled to see folks on the other side of the aisle finally worried about the plaintiffs' bar and excessive delays that the plaintiffs' bar throws into the regulatory process. I promise my cooperation full- throatedly to work across the aisle to make sure that H.R. 1900 doesn't add a single job in the plaintiffs' bar anywhere in the United States of America.
Finally, Ms. Castor's amendment was offered because they are concerned about the idea that a permit would be deemed approved after a certain time, claiming in some cases that this has been unprecedented. Yet in the Clean Water Act, within 45 days of receipt of an application, under 33 U.S.C. 129, if no ruling has been issued, a permit ``shall be deemed approved.''
Under TSCA, section 5, again, a company seeking an application must submit a notice of commencement to EPA within 30 days, after which the chemical is considered an existing chemical. That is, the request is deemed approved.
This is not unprecedented.
The idea that this provision is extreme or unprecedented is simply not supported by the facts, and the precedent for applications being approved if a governing agency fails to act is very common in our Federal law.
I urge my colleagues to vote ``no'' on the Castor amendment, and I yield back the balance of my time.
Mr. Chairman, I rise in opposition to the amendment offered by the gentleman from Michigan.
Mr. Chairman, I rise in opposition to this amendment offered by the gentleman from Michigan (Mr. Dingell), which would strike the entire piece of legislation and replace it with a GAO study.
The GAO back in February of this year issued a report detailing what they called the ``complex'' natural gas pipeline permitting process. This amendment would simply ask the GAO to duplicate many of those same findings that were done in a report issued less than a year ago, and there is simply no need for that.
I understand the gentleman from Michigan thinks this legislation is unnecessary, but I respectfully disagree. I
will give one example of where the claims regarding the approval timelines for natural gas permit pipelines have been dubious.
It has been erroneously repeated by opponents of this legislation that FERC testified in front of the Energy and Commerce Committee that 90 percent of the permits are being done on time. This is simply not the case. This is not what FERC stated in their testimony. It stated that 90 percent of the certificates are being completed within 12 months. There is an awful lot of difference between a certificate and a permit.
FERC is in control of only the certificate process, but they are at the mercy of other agencies with respect to the permit approval process. This is the main reason for the need for this legislation, because FERC has absolutely no enforcement authority over the other agencies to process permits on schedule. This brings accountability to other agencies.
Even though 90 percent of certificates are being processed by FERC in the 12-month period, it doesn't tell the full story. It would be talking about the bills that the House of Representatives passed and talking only about our naming of post offices and not talking about the substantive legislation, the important things, we do here in the House of Representatives.
I would also remind the gentleman from Michigan that the need for this legislation is so great that it garners support not just from the U.S. Chamber of Commerce and the National Association of Manufacturers, but also the major electricity trade associations across the country: Edison Electric Institute, the National Rural Electric Cooperative Association, and the American Public Power Association, as well as the New England Ratepayers Association, whose members are experiencing skyrocketing natural gas prices.
This amendment would gut the bill and ignore the core problem of stubbornly high natural gas prices in certain regions across the Nation. It dismisses the need for an improved permitting process for natural gas pipeline infrastructure completely.
For that reason, I urge my colleagues to vote ``no'' on the gentleman's agreement, and I reserve the balance of my time.
Mr. Chairman, I just reiterate there is enormous importance to this legislation. While I appreciate that the gentleman from Michigan offered his amendment in a friendly tone, it guts the legislation in its entirety.
I also want to offer that H.R. 1900 is offered in a friendly manner. It is offered friendly to places like Michigan, New York, Florida, and Arizona, places that are paying unnecessarily high prices for natural gas in their parts of the country.
With that, I would urge rejection of this amendment and urge my colleagues to vote ``no'' on it.
I yield back the balance of my time.
Madam Speaker, I rise in opposition to the motion.
I urge my colleagues to vote in opposition to the motion to recommit.
Madam Speaker, while we share every one of our colleagues' concerns about pipeline safety, nothing in this legislation does anything to impact the safety of pipelines all across the country. Indeed, putting in new pipelines, increasing capacity for natural gas pipelines, will actually allow the retirement of older pipelines which might present even more risk.
We all know the tragic incident that happened in San Bruno, California. This body has taken action to rectify that. There were pipeline safety bills passed with all of the Members of the House, and it passed in the Senate as well, to make sure that every pipeline built is done so in a way that is safe and responsible and with plenty of time for community input.
The motion to recommit suggests that H.R. 1900 would eliminate that time. It does nothing of that nature. In every case, for a complex pipeline, there will be nearly 2 years' time for communities and interest groups who have concerns about the pipeline going into their territory, their region, to make their voices heard and to make their concerns registered in the public place.
I urge my colleagues to reject this motion to recommit and pass the underlying legislation, H.R. 1900.
With that, I yield back the balance of my time.