[House Report 118-19]
[From the U.S. Government Publishing Office]
118th Congress } { Rept. 118-19
HOUSE OF REPRESENTATIVES
1st Session } { Part 1
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PROTECTING AMERICAN ENERGY PRODUCTION ACT
_______
March 23, 2023.--Ordered to be printed
_______
Mrs. Rodgers of Washington, from the Committee on Energy and Commerce,
submitted the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 1121]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 1121) to prohibit a moratorium on the use of
hydraulic fracturing, having considered the same, reports
favorably thereon without amendment and recommends that the
bill do pass.
CONTENTS
Page
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 2
Committee Action................................................. 2
Committee Votes.................................................. 3
Oversight Findings and Recommendations........................... 5
New Budget Authority, Entitlement Authority, and Tax Expenditures 5
Congressional Budget Office Estimate............................. 5
Federal Mandates Statement....................................... 5
Statement of General Performance Goals and Objectives............ 5
Duplication of Federal Programs.................................. 5
Related Committee and Subcommittee Hearings...................... 5
Committee Cost Estimate.......................................... 6
Earmark, Limited Tax Benefits, and Limited Tariff Benefits....... 6
Advisory Committee Statement..................................... 6
Applicability to Legislative Branch.............................. 6
Section-by-Section Analysis of the Legislation................... 7
Changes in Existing Law Made by the Bill, as Reported............ 7
Minority Views................................................... 8
PURPOSE AND SUMMARY
H.R. 1121 was introduced by Rep. Jeff Duncan (SC-03) on
February 21, 2023. The purpose of H.R. 1121 is to prevent the
President from implementing a national ban on hydraulic
fracturing. The bill prohibits the President from declaring a
moratorium on the use of hydraulic fracturing unless Congress
authorizes the moratorium. The bill also expresses the sense of
Congress that states should maintain primacy for the regulation
of hydraulic fracturing for oil and natural gas production on
state and private lands.
BACKGROUND AND NEED FOR LEGISLATION
Hydraulic fracturing, or fracking, is a process to extract
underground resources such as oil or gas from a geologic
formation by injecting water, a propping agent (e.g., sand),
and chemical additives into a well under enough pressure to
fracture the formation. States decide whether to permit or ban
hydraulic fracturing (fracking) on State and private land.
Under current law, each State has primary regulatory authority
over oil and natural gas production. Congress made this clear
in the bipartisan Energy Policy Act of 2005. This bill
maintains the Congressional intent of the bipartisan Energy
Policy Act of 2005, as each State has primary regulatory
authority over oil and natural gas production using hydraulic
fracturing. It also prevents the President from unilaterally
declaring a moratorium on hydraulic fracturing.
Hydraulic fracturing in the production of both oil and
natural gas predicated the ``Shale Revolution'', propelling the
United States to be a world leader in both. America became the
global leader in crude oil and natural gas production. It is
estimated the shale revolution saved U.S. consumers $203
billion dollars annually, breaking down to $2,500 per family of
four. It also lowered energy-related greenhouse gas emissions
by 527 metric tons per year.
Despite the successes and benefits of hydraulic fracturing,
the Federal Government has sought to regulate it by ignoring
existing laws and Congressional intent. The Committee finds
that to increase American energy production and restore energy
leadership the authority of the States to regulate production
on State and private land within their borders must be
preserved. H.R. 1121 protects this authority and curtails the
overreach of the Executive Branch by prohibiting the President
from declaring a moratorium on hydraulic fracturing unless it
is authorized by Congress.
COMMITTEE ACTION
On February 7, 2023, the Subcommittees on Energy, Climate,
and Grid Security and Environment, Manufacturing, and Critical
Materials held a joint hearing entitled, ``Unleashing American
Energy, Lowering Energy Costs, and Strengthening Supply
Chains,'' on 17 pieces of legislation, including H.R. 1121. The
Subcommittees received testimony from:
The Honorable Mark Menezes, Former United
States Deputy Secretary of Energy, Department of
Energy;
The Honorable Bernard McNamee, Former
Commissioner, Federal Energy Regulatory Commission;
Jeffrey Eshelman, II, President and Chief
Executive Officer, Independent Petroleum Association of
America;
Katie Sweeney, Executive Vice President and
Chief Operating Officer, National Mining Association;
Raul Garcia, Legislative Director for
Healthy Communities, Earthjustice; and
Tyson Slocum, Director of the Energy
Program, Public Citizen.
On February 28, 2023, the Subcommittee on Energy, Climate,
and Grid Security met in open markup session and forwarded H.R.
1121, without amendment, to the full Committee by a record vote
of 16 yeas and 11 nays. On March 9, 2023, the full Committee on
Energy and Commerce met in open markup session and ordered H.R.
1121, without amendment, favorably reported to the House by a
record vote of 29 yeas and 19 nays.
COMMITTEE VOTES
Clause 3(b) of rule XIII requires the Committee to list the
record votes on the motion to report legislation and amendments
thereto. The following reflects the record votes taken during
the Committee consideration:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
OVERSIGHT FINDINGS AND RECOMMENDATIONS
Pursuant to clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII, the Committee held hearings and made findings that
are reflected in this report.
NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY,
AND TAX EXPENDITURES
Pursuant to clause 3(c)(2) of rule XIII, the Committee
finds that H.R. 1121 would result in no new or increased budget
authority, entitlement authority, or tax expenditures or
revenues.
CONGRESSIONAL BUDGET OFFICE ESTIMATE
Pursuant to clause 3(c)(3) of rule XIII, at the time this
report was filed, the cost estimate prepared by the Director of
the Congressional Budget Office pursuant to section 402 of the
Congressional Budget Act of 1974 was not available.
FEDERAL MANDATES STATEMENT
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES
Pursuant to clause 3(c)(4) of rule XIII, the general
performance goal or objective of this legislation is to
increase American energy production and restore energy
leadership by prohibiting the President from declaring a
moratorium on the use of hydraulic fracturing and protecting
State primacy of the regulation of hydraulic fracturing for oil
and natural gas production on state and private lands.
DUPLICATION OF FEDERAL PROGRAMS
Pursuant to clause 3(c)(5) of rule XIII, no provision of
H.R. 1121 is known to be duplicative of another Federal
program, including any program that was included in a report to
Congress pursuant to section 21 of Public Law 111-139 or the
most recent Catalog of Federal Domestic Assistance.
RELATED COMMITTEE AND SUBCOMMITTEE HEARINGS
Pursuant to clause 3(c)(6) of rule XIII:
(1) the following hearings were used to develop or consider
H.R. 1121:
On January 31, 2023, the Committee on Energy and Commerce
held a hearing entitled, ``American Energy Expansion:
Strengthening Economic, Environmental, and National Security.''
The Committee received testimony from:
The Honorable Paul Dabbar, Former Under
Secretary of Energy, Department of Energy;
Robert McNalley, President, Rapidan Energy
Group, LLC;
Donna Jackson, Director of Membership
Development--National Center for Public Policy
Research, Project 21; and
Ana Unruh Cohen, Former Majority Staff
Director, U.S. House Select Committee on the Climate
Crisis.
On February 16, 2023, the Subcommittee on Energy, Climate,
and Grid Security held a field hearing in Midland, Texas,
entitled, ``American Energy Expansion: Improving Local
Economies and Communities' Way of Life.'' The Committee
received testimony from:
The Honorable Lori Blong, Mayor of Midland,
Texas, and President of Octane Energy;
Adrian Carrasco, Chairman Midland Hispanic
Chamber of Commerce, and President of Premier Energy
Services;
Steven Pruett, President and CEO, Elevation
Resources, and Chairman of the Board for Independent
Petroleum Association of America; and
Dr. Michael Zavada, Professor of Biology and
Geosciences, and Chair, Department of Geosciences at
The University of Texas--Permian Basin.
(2) The following related hearing was held:
On February 7, 2023, the Subcommittees on Energy, Climate,
and Grid Security and Environment, Manufacturing, and Critical
Materials held a joint hearing entitled, ``Unleashing American
Energy, Lowering Energy Costs, and Strengthening Supply
Chains,'' on 17 pieces of legislation, including H.R. 1121. The
Subcommittees received testimony from:
The Honorable Mark Menezes, Former United
States Deputy Secretary of Energy, Department of
Energy;
The Honorable Bernard McNamee, Former
Commissioner, Federal Energy Regulatory Commission;
Jeffrey Eshelman, II, President and Chief
Executive Officer, Independent Petroleum Association of
America;
Katie Sweeney, Executive Vice President and
Chief Operating Officer, National Mining Association;
Raul Garcia, Legislative Director for
Healthy Communities, Earthjustice; and
Tyson Slocum, Director of the Energy
Program, Public Citizen.
COMMITTEE COST ESTIMATE
Pursuant to clause 3(d)(1) of rule XIII, the Committee
adopts as its own the cost estimate prepared by the Director of
the Congressional Budget Office pursuant to section 402 of the
Congressional Budget Act of 1974. At the time this report was
filed, the estimate was not available.
EARMARK, LIMITED TAX BENEFITS, AND LIMITED TARIFF BENEFITS
Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the
Committee finds that H.R. 1121 contains no earmarks, limited
tax benefits, or limited tariff benefits.
ADVISORY COMMITTEE STATEMENT
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
APPLICABILITY TO LEGISLATIVE BRANCH
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION
Section 1. Short title
Section 1 provides the short title of ``Protecting American
Energy Production Act''.
Section 2. Protecting American Energy Production
Section 2(a) expresses the Sense of Congress that States
should maintain primacy for the regulation of hydraulic
fracturing for oil and natural gas production on State and
private lands.
Section 2(b) prohibits the President from declaring a
moratorium on the use of hydraulic fracturing unless such
moratorium is authorized by an Act of Congress.
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
With respect to the requirement of clause 3(e) of rule XIII
of the Rules of the House of Representatives, changes in
existing law made by the bill, as reported, this section was
not made available to the Committee in time for the filing of
this report.
MINORITY VIEWS
H.R. 1121, which would prohibit the President from
implementing any moratorium on fracking unless explicitly
authorized by Congress, is a messaging bill and is a solution
in search of a problem. The prohibition contained in the bill
is overly-broad, and contradicts the sense of Congress
contained in the same section.
In its report, the majority claims that ``the Federal
Government has sought to regulate it by ignoring existing laws
and Congressional intent.'' We are aware of no efforts from the
Biden Administration to impose a ban or a moratorium on the use
of hydraulic fracturing on State and private land.
What's more, the bill goes beyond the limitations the
majority claims are embedded within the Energy Policy Act of
2005. As written, the bill prohibits the President from
``declare[ing] a moratorium on the use of hydraulic fracturing
unless such moratorium is authorized by an Act of
Congress''.\1\ This language would go beyond the State and
private lands that the majority's report and the sense of
Congress contained in section 2(a) specify, and would seem to
prohibit the President from enacting limitations on the use of
hydraulic fracturing on public lands--an overly broad
prohibition that would limit the Federal government's authority
to dictate what occurs on lands it owns.
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\1\H.R. 1121.
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For the reasons stated above, we dissent from the views
contained in the Committee's report.
Frank Pallone, Jr.,
Ranking Member, Committee on Energy and Commerce.
[all]