[Congressional Record Volume 160, Number 100 (Wednesday, June 25, 2014)]
[House]
[Pages H5741-H5746]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
DOMESTIC PROSPERITY AND GLOBAL FREEDOM ACT
The SPEAKER pro tempore. Pursuant to House Resolution 636 and rule
XVIII, the Chair declares the House in the Committee of the Whole House
on the state of the Union for the further consideration of the bill,
H.R. 6.
Will the gentleman from Texas (Mr. Poe) kindly take the chair.
{time} 1318
In the Committee of the Whole
Accordingly, the House resolved itself into the Committee of the
Whole House on the state of the Union for the further consideration of
the bill (H.R. 6) to provide for expedited approval of exportation of
natural gas to World Trade Organization countries, and for other
purposes, with Mr. Poe of Texas (Acting Chair) in the chair.
The Clerk read the title of the bill.
The Acting CHAIR. When the Committee of the Whole rose on Tuesday,
June 24, 2014, all time for general debate had expired.
Pursuant to the rule, the bill shall be considered for amendment
under the 5-minute rule.
In lieu of the amendment in the nature of a substitute recommended by
the Committee on Energy and Commerce, printed in the bill, it shall be
in order to consider as an original bill for the purpose of amendment
under the 5-minute rule an amendment in the nature of a substitute
consisting of the text of Rules Committee Print 113-48. That amendment
in the nature of a substitute shall be considered as read.
The text of the amendment in the nature of a substitute is as
follows:
H.R. 6
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Domestic Prosperity and
Global Freedom Act''.
SEC. 2. ACTION ON APPLICATIONS.
(a) Decision Deadline.--The Department of Energy shall
issue a decision on any application for authorization to
export natural gas under section 3 of the Natural Gas Act (15
U.S.C. 717b) not later than 90 days after the later of--
(1) the end of the comment period for such decision as set
forth in the applicable notice published in the Federal
Register; or
(2) the date of enactment of this Act.
(b) Judicial Action.--(1) The United States Court of
Appeals for the circuit in which the export facility will be
located pursuant to an application described in subsection
(a) shall have original and exclusive jurisdiction over any
civil action for the review of--
(A) an order issued by the Department of Energy with
respect to such application; or
(B) the Department of Energy's failure to issue a decision
on such application.
(2) If the Court in a civil action described in paragraph
(1) finds that the Department of Energy has failed to issue a
decision on the application as required under subsection (a),
the Court shall order the Department of Energy to issue such
decision not later than 30 days after the Court's order.
(3) The Court shall set any civil action brought under this
subsection for expedited consideration and shall set the
matter on the docket as soon as practical after the filing
date of the initial pleading.
SEC. 3. PUBLIC DISCLOSURE OF EXPORT DESTINATIONS.
Section 3 of the Natural Gas Act (15 U.S.C. 717b) is
amended by adding at the end the following:
``(g) Public Disclosure of LNG Export Destinations.--As a
condition for approval of any authorization to export LNG,
the Secretary of Energy shall require the applicant to
publicly disclose the specific destination or destinations of
any such authorized LNG exports.''.
The Acting CHAIR. No amendment to that amendment in the nature of a
substitute shall be in order except those printed in part A of House
Report 113-492. Each such amendment may be offered only in the order
printed in the report, by a Member designated in the report, shall be
considered as read, shall be debatable for the time specified in the
report equally divided and controlled by the proponent and an opponent,
shall not be subject to amendment, and shall not be subject to a demand
for division of the question.
Amendment No. 1 Offered by Mr. Gardner
The Acting CHAIR. It is now in order to consider amendment No. 1
printed in part A of House Report 113-492.
Mr. GARDNER. Mr. Chairman, I have an amendment at the desk.
The Acting CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:
Redesignate subsection (b) of section 2 as subsection (c).
Strike subsection (a) of section 2 and insert the
following:
(a) Decision Deadline.--For proposals that must also obtain
authorization from the Federal Energy Regulatory Commission
or the United States Maritime Administration to site,
construct, expand, or operate LNG export facilities, the
Department of Energy shall issue a final decision on any
application for the authorization to export natural gas under
section 3 of the Natural Gas Act (15 U.S.C. 717b) not later
than 30 days after the later of--
(1) the conclusion of the review to site, construct,
expand, or operate the LNG facilities required by the
National Environmental Policy Act of 1969 (42 U.S. C. 4321 et
seq.); or
(2) the date of enactment of this Act.
[[Page H5742]]
(b) Conclusion of Review.--For purposes of subsection (a),
review required by the National Environmental Policy Act of
1969 shall be considered concluded--
(1) for a project requiring an Environmental Impact
Statement, 30 days after publication of a Final Environmental
Impact Statement;
(2) for a project for which an Environmental Assessment has
been prepared, 30 days after publication by the Department of
Energy of a Finding of No Significant Impact; and
(3) upon a determination by the lead agency that an
application is eligible for a categorical exclusion pursuant
National Environmental Policy Act of 1969 implementing
regulations.
In subsection (c) of section 2, as so redesignated, by
inserting ``final'' before ``decision'' each place it
appears.
The Acting CHAIR. Pursuant to House Resolution 636, the gentleman
from Colorado (Mr. Gardner) and a Member opposed each will control 5
minutes.
The Chair recognizes the gentleman from Colorado.
Mr. GARDNER. Mr. Chairman, I thank you again for the opportunity to
debate H.R. 6, the Domestic Prosperity and Global Freedom Act. It is
something that, in this Congress, we don't do that often, a bill to
address both job creation here at home and also to provide our trading
partners and our allies with energy security abroad.
The amendment before the desk right now is a manager's amendment,
brought to this Chamber in a bipartisan fashion with the gentleman from
Texas, Representative Gene Green, who has been gracious and patient in
this effort to work through this process to make sure that we have as
broad-based support as possible for this legislation.
It recognizes that, despite some of the concerns our side has with
the recent DOE changes to their process, including the expanding scope
of DOE's public interest analysis to include elements unrelated to
DOE's primary authorities, it is still vitally important to send as
strong a message as possible to our allies that the U.S. is prepared to
answer their call and enter the market as a major exporting nation.
It is equally important that we send a message that we are bringing
certainty to the applicants and the jobs currently waiting in limbo at
DOE, and that DOE will, indeed, be held accountable to do its job once
FERC finishes their facility review and the NEPA process.
Again, this legislation has the potential to lift 45,000 people off
of the unemployment rolls. Daniel Yergin testified before the Energy
and Commerce Committee that we could move from 1.7 million jobs in this
country to 3 million jobs in this country in energy by 2020. And H.R. 6
and this amendment help advance that job creation.
But because DOE's recent changes did not put a final deadline for the
Department to act on applications, this amendment requires that the
Department must issue a decision on pending applications within 30 days
after FERC completes the NEPA review for the project. We are doing this
because some of these applications have been languishing for more than
2 years, and it is time to insert accountability back into the process,
especially when DOE's own analysis concludes: Increasing natural gas
exports are net positive to our economy.
This issue is too important to domestic job creation and to
increasing the United States' role in international energy diplomacy to
continue to squander and delay our opportunities.
This amendment also addresses many of the concerns that those on the
other side have voiced with previous versions of this legislation,
including completing full environmental reviews and maintaining DOE's
role in the public interest test. I hope this will help H.R. 6 garner
even broader support.
At this time, I yield 1 minute to the gentleman from Texas (Mr. Gene
Green) and, again, thank him for his support.
Mr. GENE GREEN of Texas. I thank my colleague and fellow committee
member for yielding.
Mr. Chairman, I rise in strong support of the manager's amendment. I
want to thank the gentleman from Colorado (Mr. Gardner) and my
colleagues on both sides of the aisle for their hard work. The
amendment we offer today is the result of hard, bipartisan work.
The original text of H.R. 6 worked to fix a problem at the Department
of Energy. The problem was delay. The Department of Energy is
responsible for permitting exports to non-free trade agreement
countries.
Since 2011, the Department has received approximately 35 permit
applications to export liquefied natural gas. Since 2011, only one
project has received final approval.
EIA estimates that by 2035, the United States will produce 5 trillion
cubic feet more than we can consume of natural gas. But in order to
export the gas, rather than flare it and harm the environment, projects
need permits.
The process is not working well. Why has only one project received
final approval after 3 years? Why did DOE, just this month, propose
changing the process? It is because the process is not working.
The manager's amendment that I coauthored with my colleague from
Colorado acknowledges that DOE's proposed changes are a step in the
right direction.
The Acting CHAIR. The time of the gentleman has expired.
Mr. GARDNER. I yield the gentleman an additional 30 seconds.
Mr. GENE GREEN of Texas. I thank the gentleman.
Unfortunately, after 3 years of delay, we need to ensure DOE issues
timely decisions. The manager's amendment places a 30-day timeframe on
DOE after the completion of the environmental review process.
This amendment is an example of the cooperation and bipartisanship
from our committee. And, again, I urge Members to adopt the manager's
amendment.
Principal Deputy Assistant Secretary for Fossil Energy, Chris Smith,
told a Senate panel last week that he is ``confident that whatever the
law requires, the department will be able to accomplish.''
DOE will issue public interest determinations 12-to-18 months after
they receive the application.
I am confident that: after 3 years of delay, 12-to-18 months of
environmental review, a 30 day public comment period; and an additional
30 days to review the application that DOE can issue a sound public
interest determination.
Mr. WAXMAN. Mr. Chairman, I rise in opposition to the amendment.
The Acting CHAIR. The gentleman from California is recognized for 5
minutes.
Mr. WAXMAN. Mr. Chairman, I appreciate that the gentleman from
Colorado, Congressman Gardner, is proposing some changes in an effort
to address some of the problems with his bill.
The base bill would require the Department of Energy to make final
decisions on almost all of the pending energy export applications in 90
days, without the benefit of complete environmental reviews. Now they
look at their bill, and they appear to understand that this would be
bad policy.
The amendment would establish a different deadline. Now DOE must
issue a final decision on an application within 30 days of completion
of the NEPA environmental review. That is an improvement because it at
least ensures that major LNG export projects are not approved without
an environmental review. However, if this amendment is adopted, the
bill will remain unnecessary and problematic.
The bill is unnecessary because DOE already is approving huge volumes
of LNG exports without any legislative action. They have proposed to
further streamline their review at DOE so that it prioritizes review of
the projects that have completed environmental reviews. That is already
happening without this bill.
So if we adopt this amendment, the bill will still be unnecessary
because it truncates DOE's public interest review. We should give DOE
the time it needs to weigh the pros and cons of granting an
application. Instead, the bill sets a 30-day deadline that would rush
that process. To me, that doesn't make sense, especially since rushing
DOE isn't going to get LNG exported any faster. LNG can't be exported
without a terminal, and nothing in this bill gets terminals permitted
or built any faster.
I am not going to oppose this amendment because it is probably better
than the base bill, but it doesn't solve all of the problems with the
bill. It illustrates how this bill, which is being touted as bringing
about domestic
[[Page H5743]]
prosperity and global freedom, is being worked on the go. I think it
hasn't been thought through. This makes it a little better, but I don't
see how the bill lives up to its title. I won't oppose the amendment,
but I still think the bill is not worthy of passage.
I reserve the balance of my time.
Mr. GARDNER. I thank Ranking Member Waxman for his support of the
amendment but would remind him that an Ambassador from Hungary,
ambassador-at-large for energy security, said it is simply not true
that lifting the natural gas export ban today would not have an
immediate effect in Europe. It would immediately change the business
calculus of infrastructure investment and send an extremely important
message of strategic reassurance to the region, which currently feels
more threatened than at any time since the cold war.
Passage of this bill would send an immediate signal to our allies and
our enemies that the United States is serious about energy security and
aiding our friends most in need of energy security.
I reserve the balance of my time.
Mr. WAXMAN. Mr. Chairman, I know that the Ambassador from Hungary and
other countries that are looking at the possible aggression of the
Russians are concerned about not having to rely on Russia alone for
their natural gas supplies, and they are desperate. And we need to help
them as best we can.
But let's not fool anybody. Even if this bill were passed, it will
probably not allow for us to get LNG to some of those countries until
2017, 2018. And if we allow the export of LNG, exporters here in the
United States are going to send it primarily to those who will pay the
highest prices. And they are not in Europe. They are in Asia.
{time} 1330
I wouldn't want the people to be under any illusions that this will
help them immediately. I think the statement by that Ambassador shows
more desperation than anything else and hope that we send a signal that
we are going to do the best we can to get LNG to them as soon as
possible, maybe they can withstand a possible Russian action.
On the other hand, the Ambassador from Hungary knows that Hungary is
part of NATO, and if Hungary is attacked by the Russians, we have an
obligation to help them under our NATO agreement, so I think that is
their base security, not this legislation.
They have high hopes, especially when they hear that this is a bill
that will bring about domestic prosperity to the United States. They
would presumably like for us to have prosperity, and so would I, and it
is called not only Domestic Prosperity, but Global Freedom, and they
certainly are hoping that we will do what we can for global freedom.
I certainly want to do everything we can for global freedom, and
voting against this bill does not mean voting against global freedom.
Mr. HOLT. Will the gentleman yield?
Mr. WAXMAN. I would be happy to yield 15 seconds to the gentleman
from New Jersey.
Mr. HOLT. Mr. Chairman, the gentleman from Colorado says that this
would send a signal to European countries, and as my friend from
California makes clear, it would not be a signal that help is on the
way any time soon. The natural gas would not come soon, but the signal
that would be heard loud and clear by manufacturers and homeowners is
the price of gas would be going up.
Mr. WAXMAN. I yield back the balance of my time.
Mr. GARDNER. Mr. Chairman, I would just point out that here is an
article that states that: ``Centrica buys U.S. LNG in 20-year deal as
U.K. output wanes.'' Selling U.S. LNG to Europe, Italy is close to 20-
year LNG deal with Cheniere; another article, ``Cheniere and Endesa
sign 20-year LNG sale and purchase agreement.''
Mr. Chairman, I urge the adoption of the amendment to H.R. 6.
I yield back the balance of my time.
The Acting CHAIR. The question is on the amendment offered by the
gentleman from Colorado (Mr. Gardner).
The amendment was agreed to.
Amendment No. 2 Offered by Mr. Holt
The Acting CHAIR. It is now in order to consider amendment No. 2
printed in part A of House Report 113-492.
Mr. HOLT. Mr. Chairman, I have an amendment at the desk.
The Acting CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:
Page 1, line 5, strike ``The Department'' and insert
``Except as provided in section 3(a)(2)(C) of the Natural Gas
Act, as added by section 4 of this Act), the Department''.
At the end of the bill, add the following new section:
SEC. 4. AUTHORIZATION FOR THE EXPORTATION OF NATURAL GAS.
Section 3(a) of the Natural Gas Act (15 U.S.C. 717b(a)) is
amended--
(1) by inserting before ``After six months from the date on
which'' the following: ``(1) authorization for the
importation of natural gas.--'';
(2) by striking ``export any natural gas from the United
States to a foreign country or'';
(3) by striking ``exportation or''; and
(4) by adding at the end the following new paragraphs:
``(2) Authorization for the Exportation of Natural Gas.--
``(A) Prohibition.--No person may export any natural gas
from the United States to a foreign country without first
having secured an order of the Secretary of Energy
authorizing such person to do so.
``(B) Issuance of orders.--The Secretary of Energy may
issue an order authorizing a person to export natural gas
from the United States to a foreign country, upon
application, if the Secretary determines that the proposed
exportation will be consistent with the public interest, in
accordance with the regulations issued under paragraph
(3)(B). The Secretary may by order grant such application, in
whole or in part, with such modification and upon such terms
and conditions as the Secretary may find necessary or
appropriate.
``(C) Timing.--No order may be issued by the Secretary of
Energy under this paragraph prior to the date on which the
Secretary issues final regulations under paragraph (3)(B).
``(3) Public Interest Determination.--
``(A) NEPA review.--The Secretary of Energy shall issue a
detailed statement under section 102(2)(C) of the National
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) of
the environmental impact of the issuance of orders under
paragraph (2), including by conducting an analysis of the
impacts of extraction of exported natural gas on the
environment in communities where the natural gas is
extracted.
``(B) Regulations.--
``(i) Deadline.--Not later than 2 years after the date of
enactment of this paragraph, the Secretary of Energy shall
issue final regulations, after notice and public comment, for
determining whether an export of natural gas from the United
States to a foreign country is in the public interest for
purposes of issuing an order under paragraph (2).
``(ii) Contents.--Regulations issued under this paragraph
shall require the Secretary of Energy to determine, with
respect to each application for export of natural gas from
the United States to a foreign country, whether such export
is in the public interest through--
``(I) use of the latest available data on current and
projected United States natural gas demands, production, and
price;
``(II) consideration of the effects of such natural gas
exports on--
``(aa) household and business energy expenditures by
electricity and natural gas consumers in the United States;
``(bb) the United States economy, jobs, and manufacturing,
including such effects on wages, investment, and energy
intensive and trade exposed industries, as determined by the
Secretary;
``(cc) the energy security of the United States, including
the ability of the United States to reduce its reliance on
imported oil;
``(dd) the conservation of domestic natural gas supplies to
meet the future energy needs of the United States;
``(ee) the potential for natural gas use in the
transportation, industrial, and electricity sectors of the
United States;
``(ff) the ability of the United States to reduce
greenhouse gas emissions;
``(gg) the volume of natural gas produced on public lands
in the United States, and where such natural gas is consumed;
``(hh) domestic natural gas supply and availability,
including such effects on pipelines and other infrastructure;
``(ii) the balance of trade of the United States; and
``(jj) other issues determined relevant by the Secretary;
and
``(III) consideration of the detailed statement issued
under subparagraph (A).
``(4) Exemptions.--Paragraph (2) does not apply with
respect to any order authorizing the exportation of natural
gas if the natural gas that would be exported as a result of
the order is exported solely to meet a requirement imposed
pursuant to section 203 of the International Emergency
Economic Powers Act (50 U.S.C. 1702), section 5(b) of the
Trading with the Enemy Act (50 U.S.C. App. 5(b)), or part B
of title II of the Energy Policy and Conservation Act (42
U.S.C. 6271 et seq.). In such cases, the Secretary of Energy
may issue such order upon application without modification or
delay.''.
The Acting CHAIR. Pursuant to House Resolution 636, the gentleman
from New Jersey (Mr. Holt) and a
[[Page H5744]]
Member opposed each will control 5 minutes.
The Chair recognizes the gentleman from New Jersey.
Mr. HOLT. Mr. Chairman, I yield myself 2 minutes.
Mr. Chairman, I rise in support of this amendment that I am offering,
along with Mr. Quigley of Illinois.
The effects of the natural gas boom have been felt throughout our
economy, but before we hurry to ship our energy advantage overseas, we
should ensure that we are not exporting our ability to create jobs,
keep energy prices low, and to fuel a resurgence in American
manufacturing that is so badly needed.
The Holt-Quigley amendment will ensure that the Department of
Energy--before approving additional LNG exports--adheres to unambiguous
congressional guidance in consideration of how such exports will affect
our economy, our communities, and our environment.
H.R. 6 would essentially approve all pending LNG applications, in
addition to those that have already been approved. All approved and
pending export facilities add up to an ability to export 36 billion
cubic feet of liquefied natural gas per day.
Thirty-six billion cubic feet per day is about 40 percent of U.S.
peak daily consumption during this past winter--a winter, I should
note, with volatility in the domestic natural gas market resulting in
shortages in some areas--while, elsewhere, prices spiked, resulting in
up to a 250 percent increase in natural gas prices from the previous
year.
Now, we know that exporting more LNG will raise prices, but what we
don't know is by how much. We know that higher prices will create
problems for U.S. manufacturing and homeowner heating, but we don't
know how badly.
We should take the time to consider what greater volumes of LNG
exports will mean for energy prices, jobs, manufacturing, the
environment, and the economy.
As with all the bills on the floor this week, H.R. 6 is about
supporting oil and gas interest at the expense of American
manufacturing, American families, and the environment.
Our amendment has the support of both America's Energy Advantage and
the Industrial Energy Consumers of America.
Mr. Chairman, I reserve the balance of my time.
Mr. GARDNER. Mr. Chairman, I rise in opposition to the amendment.
The Acting CHAIR. The gentleman from Colorado is recognized for 5
minutes.
Mr. GARDNER. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, the Holt amendment is a virtual rewrite of the entire
Natural Gas Act that has been drafted without the benefit of the full
debate of this Chamber or committee in regular order of this process.
The amendment would reverse the rebuttable presumption that proposed
exports are consistent with the public interest. The amendment would
also require the Department of Energy to undertake a new rulemaking and
issue new regulations to determine whether an export of natural gas
from the U.S. to a foreign country is in the public interest.
The moratorium on processing applications resulting from the Holt
amendment could last years. The DOE has already spent more than 3
years--3 years--establishing the process for reviewing the public
interest.
The DOE's public interest analysis is already well informed by
numerous economic and environmental studies; and in prior decisions,
DOE has looked at a number of factors, including economic impacts,
international considerations, U.S. energy security, and environmental
considerations, already among other things.
To conduct its reviews, DOE looks to the record of evidence developed
in the application proceeding. Applicants and intervenors are free to
raise new issues or concerns relevant to the public interest that may
not have been addressed in prior cases.
Even though the DOE has repeatedly rejected the same reoccurring
arguments lodged by the same Washington, D.C.-based special interest
groups, they are delaying decisions on new export applications.
The Department of Energy has continually stated that the public
interest generally favors authorizing proposals to export natural gas
that have been shown to lead to net benefits on the U.S. economy, and I
believe the Holt amendment would disrupt the process that DOE has
developed and result in even further delays.
Mr. Chairman, with that, I yield 1 minute to the gentleman from Texas
(Mr. Gene Green).
Mr. GENE GREEN of Texas. Mr. Chairman, I rise in opposition to the
current amendment to H.R. 6.
The Holt-Quigley amendment requires the Secretary of Energy to
consider how proposed natural gas exports will affect the domestic
natural gas prices, jobs, and manufacturing when making a public
interest determination.
I rise in opposition to the amendment because it codifies
requirements that are already existing in the public interest
determination. That is what the Department of Energy, under current
law, is supposed to do, and we expect them to do their job.
When conducting a public interest determination, the Department of
Energy considers economic, geopolitical, national security, and a
variety of other issues. The public interest determination is a robust
review of all the impacts associated with LNG exports. It would be
redundant to require DOE to look at issues they are already
considering.
Mr. Chairman, I would ask my colleagues to oppose the amendment. I
thank my colleague for the time.
Mr. HOLT. Mr. Chairman, I am pleased to yield 2 minutes to the
gentleman from Illinois (Mr. Quigley), a coproposer and coauthor of
this amendment.
Mr. QUIGLEY. Mr. Chairman, the debate about our Nation's energy
policy is happening here in Congress and around the country.
We are debating the merits of natural gas extraction, with many of us
arguing for much stronger regulations to prevent the contamination of
our drinking water and the pollution of our air.
We are debating the building of the Keystone pipeline, with many of
us arguing that its approval would harm our environment and jeopardize
the health and well-being of our communities. In each of these debates,
the argument on each side may be contrary, but both sides are focused
on one important question: Is this in the national interest?
It is essential that today's debate about the exportation of natural
gas be framed in the same light. The amendment I am offering with my
friend from New Jersey is based on a central premise. Before hurrying
to export as much as 36 billion cubic feet of LNG per day, we should
take time to consider what this will mean for energy prices, jobs,
manufacturing, the environment, and our economy.
Current law simply assumes it is always in our natural interest to
export natural gas, even though studies confirm that exporting our
natural gas would increase the price domestically.
We are providing a rubberstamp review process that expedites LNG
exports without considering its potential effects. Our amendment would
simply flip this assumption and require, by law, that DOE take into
consideration exports' impact on consumers, the economy, and energy
security before making its decision.
By passing this amendment, we can ensure that true beneficiaries of
the natural gas boom are our consumers and our economy, while
protecting our environment at the same time.
Mr. GARDNER. Mr. Chairman, I yield myself such time as I may consume.
I would just add that the National Association of Manufacturers, on
April 9--which claims to be the largest manufacturing association in
the United States, representing manufacturers in every industrial
sector and in all 50 States--supports H.R. 6, the Domestic Prosperity
and Global Freedom Act.
So the largest organization of manufacturers supports H.R. 6, the
Domestic Prosperity and Global Freedom Act.
Mr. Chairman, I would also point out the risks if we do not have an
outlet for American energy production.
The result of shut-in wells and less production, indeed, will lead to
increased prices for consumers, but the fact is that DOE studies have
already stated that exporting natural gas has been shown to lead to net
benefits to
[[Page H5745]]
the U.S. economy, adding billions of dollars to our GDP, adding tens of
thousands of jobs to our Nation's workforce, and removing people from
the unemployment rolls.
This is something this Congress ought to adopt today, a way to move
forward on energy security, and a way to move forward on jobs that are
ready to put people to work. Let's pass this bill today.
I oppose the gentleman's amendment for the simple fact that it is
unworkable and rewrites the law without adequate discussion and debate
amongst this body.
Mr. Chairman, I reserve the balance of my time.
Mr. HOLT. Mr. Chairman, how much time remains?
The Acting CHAIRMAN. The gentleman from New Jersey has 1\1/2\ minutes
remaining.
Mr. HOLT. Mr. Chairman, I yield myself such time as I may consume.
Groups representing a diverse group of businesses and manufacturers
support this amendment--groups that believe we should proceed with
caution when making decisions about vast quantities of domestic energy
resources.
The Department of Energy has already approved LNG facilities that are
capable of exporting 9.3 billion cubic feet per day, and before we
irresponsibly and hurriedly expedite the approval of up to 36 billion
cubic feet--nearly four times as much of LNG exports per day--I believe
we should consider the effect this will have across our economy.
Mr. Gardner says this amendment of ours might slow exports. Well, it
might because the idea is not to do it as quickly as we can, but to do
it as wisely as we can. Our responsibility is not just to look after
the oil and gas interests. Our responsibility is also to look after
American workers, American manufacturers, American consumers, and
homeowners.
No one in this Chamber should want our domestic natural gas prices to
increase on a par with those in Europe or Asia, and a vote in support
of the Holt-Quigley amendment will ensure that that is not the case.
I urge support for this amendment, and I yield back the balance of my
time.
Mr. GARDNER. Mr. Chairman, I yield the remaining time to the
gentleman from Texas (Mr. Gene Green).
Mr. GENE GREEN of Texas. Mr. Chairman, I thank my colleague for
yielding.
Mr. Chairman, I represent an area that is a combination of both the
customers of the natural gas boom that we have, but also the export
opportunities in the States of Texas and Louisiana.
We are concerned about running up the price of natural gas because I
want it to be used more for electricity production. I have a chemical
industry that is in the eastern part of my district that I want to make
sure we keep adding those jobs like we are doing so much.
I also know that we need to keep those folks drilling in the field,
and in south Texas, we are flaring natural gas right now. In North
Dakota, we are flaring natural gas. It is not good for the environment,
but we need to have consumers for that, and so that is why this
legislation is needed, and we will be able to have customers for that.
I know, yesterday, I used it in the bill on pipelines. In Texas, we
love Blue Bell ice cream. I know the Chairman does, too. Their ads are
saying, ``We eat all we can, and we sell the rest.''
Let's use all our natural gas we can in our country at a reasonable
price, but what we can't use, let's not waste it. Let's sell it to
someone else, and I thank the colleague for the time.
Mr. GARDNER. I yield back the balance of my time.
The Acting CHAIR. The question is on the amendment offered by the
gentleman from New Jersey (Mr. Holt).
The amendment was rejected.
Amendment No. 3 Offered by Mr. DeFazio
The Acting CHAIR. It is now in order to consider amendment No. 3
printed in part A of House Report 113-492.
Mr. DeFAZIO. Mr. Chairman, I have an amendment at the desk.
The Acting CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:
Page 2, line 22, insert ``and publically disclose the
applicant's intention to use eminent domain for any
construction necessary for such authorized LNG exports''
after ``authorized LNG exports''.
The Acting CHAIR. Pursuant to House Resolution 636, the gentleman
from Oregon (Mr. DeFazio) and a Member opposed each will control 5
minutes.
The Chair recognizes the gentleman from Oregon.
{time} 1345
Mr. DeFAZIO. Mr. Chairman, I yield myself such time as I may consume.
We just had a debate over the potential impact of export of LNG on
domestic prices. There is no arguing that the low domestic prices for
natural gas have been a boon for our country. Some manufacturers are
actually moving operations back from overseas. Others here are being
advantaged in the international markets, much to the concern of some of
our competitors in Europe and elsewhere. So we can say that is good. We
are not going to settle that issue in my amendment. I am going to bring
up another issue.
But the reason natural gas companies want to export is to realize
higher prices, and some of these terminals will require new pipelines
to connect to domestic natural gas supplies, particularly some of the
new supplies.
Here is the problem. In 2005, Congress passed the Bush-Cheney energy
plan, which gave the Federal Energy Regulatory Commission--a group of
nameless, faceless, obscure bureaucrats--the authority to grant eminent
domain to pipeline companies. That means companies have eminent domain
authority generally reserved for the greater public interest to build
pipelines to export natural gas.
Now I had three amendments. This one simply requires disclosure. I
just want to bring a bit more focus during the expedited--should this
bill become law--application and approval process for persons in the
area, whether or not there is a prospect that a natural gas pipeline
will exert eminent domain over their property. Now, it is just
disclosure, because, as I say, my other amendments weren't allowed, if
eminent domain is going to be used to export natural gas to a pipeline
terminal.
Now, earlier this year I voted with, as I have every year, every
single Republican in favor of H.R. 1944. That is legislation to
overturn the Supreme Court's decision in 2005, Kelo v. City of New
London, where the city of New London was found to have the authority to
use eminent domain on behalf of private development interests. The
Republicans, as I mentioned earlier, brought up a bill to overturn that
decision, the Private Property Rights Protection Act, which passed with
every Republican vote and a number of Democrats on our side of the
aisle.
The same principle applies here. I am not challenging--because that
is not allowed--the issue of eminent domain for a private pipeline for
the export of natural gas, but I am saying that at least persons who
are in proximity to that, or actually in line with that proposed
pipeline, should have the opportunity when the company applies to know
that it may be used so they can address their point of view during the
application process.
Now, there are some industry talking points saying wait a minute,
wait a minute, this eminent domain isn't in section 3. They are right.
I agree with them. They are absolutely right. However, section 7
regulates pipelines, and pipelines in some instances will be required
and will be used to access these natural gas terminals, and I am simply
saying that persons in those areas should know that eminent domain is
intended to be used.
With that, I reserve the balance of my time.
Mr. GARDNER. Mr. Chairman, I rise in opposition to the amendment.
The Acting CHAIR. The gentleman from Colorado is recognized for 5
minutes.
Mr. GARDNER. Mr. Chairman, I have spent a great deal of my time, both
here in this Chamber and actually working in the State legislature as
well, to protect people's property rights, particularly private
property rights. In the State legislature, I remember the decision
coming down from the Supreme Court, making sure that we could do
everything we could to prevent any abuse of eminent domain. But it is
that State legislative experience that taught me that the
[[Page H5746]]
legal process of eminent domain is largely a State and local issue
which should have no bearing on the Department of Energy's public
interest determination--again, this is about the public interest
determination--for the export of LNG to non-free trade countries.
By law, the Secretary of Energy plays no part in approving the
construction of LNG export facilities or the pipelines connecting the
gas to the facility. By law, the Secretary of Energy plays no part in
the pipeline or construction of the facilities.
This bill only addresses the Department of Energy's process, and this
amendment would expand the role of DOE into an area where the DOE is
not currently involved and has no expertise.
The purpose of H.R. 6 is to expedite liquefied natural gas export
applications which have been stuck in limbo awaiting a decision for far
too long--in some cases, for more than 2 years. This amendment would
unfairly put new requirements on these already pending applications,
and I believe we should oppose the amendment because it is something,
again, that is left to the States and local determination factors. With
that, I would ask for a ``no'' vote.
I reserve the balance of my time.
Mr. DeFAZIO. Well, unfortunately, it isn't left to the States. The
gentleman is wrong. The Bush-Cheney energy act preempted the States--
preempted the State authority. It gives a faceless, nameless Federal
bureaucracy, which on every other day is opposed by the other side of
the aisle, the authority to grant eminent domain for a private company,
for private profit, for the export of natural gas, which may well drive
up the gas prices of the property owners adjacent to or who have been
penetrated by that line.
This amendment doesn't delay anything. It doesn't give any
significant new authority. It just requires the simple disclosure that
if this terminal is built, a new pipeline is going to be required, and
that pipeline, under section 3, with the faceless, nameless Federal
bureaucrats behind it, is going to be granted eminent domain authority
to take people's property. That is the bottom line. You can try and
dance around it and say, well, I am against Kelo because that was
another kind of development, but no, I am against this amendment
because we wouldn't want people to know that they were going to lose
their property rights to eminent domain because of faceless, nameless
Federal bureaucrats.
I yield back the balance of my time.
Mr. GARDNER. Mr. Chairman, I yield 1 minute to the gentleman from
Texas (Mr. Gene Green).
Mr. GENE GREEN of Texas. Mr. Chairman, I thank the gentleman from
Colorado for yielding to me again.
That 2005 energy bill may have been called Bush-Cheney, but it came
out of our Energy and Commerce Committee, and it had 77 Democratic
votes when we passed that bill on the House floor.
Mr. DeFazio's amendment, with all due respect, requires an applicant
to disclose any intention to use eminent domain on any construction
necessary to support the LNG export project. I rise in opposition
because it looks like an attempt to unnecessarily complicate LNG
exports.
LNG facilities require pipelines. However, pipeline construction and
operation is a whole separate issue. Yesterday in the House, we had a
pipeline bill. Unfortunately, my colleague submitted LNG amendments to
the pipeline bill yesterday. If H.R. 6 were a pipeline bill, then
perhaps we could be honest about the debate. The fact of the matter is
that we need more pipelines in our country. Right now in North Dakota
and south Texas, we are flaring natural gas. But H.R. 6 is not a
pipeline bill, and it is not the legislation to address the issue of
eminent domain, which is predominantly under State law, and I am proud
of our State law in Texas. I ask my colleagues to oppose the amendment.
Mr. GARDNER. Mr. Chairman, I would just add again that there is no
eminent domain authority for an LNG facility. That is what H.R. 6 is
addressing, the export permits for LNG facilities. There is no eminent
domain authority for an LNG facility. Mr. Chairman, I urge opposition
to the amendment.
I yield back the balance of my time.
The Acting CHAIR. The question is on the amendment offered by the
gentleman from Oregon (Mr. DeFazio).
The question was taken; and the Acting Chair announced that the noes
appeared to have it.
Mr. DeFAZIO. Mr. Chairman, I demand a recorded vote.
The Acting CHAIR. Pursuant to clause 6 of rule XVIII, further
proceedings on the amendment offered by the gentleman from Oregon will
be postponed.
The Chair understands that amendment No. 4 will not be offered.
Mr. GARDNER. Mr. Chairman, I move that the Committee do now rise.
The motion was agreed to.
Accordingly, the Committee rose; and the Speaker pro tempore (Mr.
Jolly) having assumed the chair, Mr. Poe of Texas, Acting Chair of the
Committee of the Whole House on the state of the Union, reported that
that Committee, having had under consideration the bill (H.R. 6) to
provide for expedited approval of exportation of natural gas to World
Trade Organization countries, and for other purposes, had come to no
resolution thereon.
____________________