[House Report 118-19]
[From the U.S. Government Publishing Office]


118th Congress   }                                    {   Rept. 118-19
                         HOUSE OF REPRESENTATIVES
  1st Session    }                                    {     Part 1

======================================================================


 
               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.
---------------------------------------------------------------------------
    \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]