[House Report 118-20]
[From the U.S. Government Publishing Office]


118th Congress  }                                          {    Report
                         HOUSE OF REPRESENTATIVES
 1st Session    }                                          {    118-20

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


 
    RESEARCHING EFFICIENT FEDERAL IMPROVEMENTS FOR NECESSARY ENERGY 
                              REFINING ACT

                                _______
                                

 March 23, 2023.--Committed to the Committee of the Whole House on the 
              State of the Union and 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. 1085]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 1085) to require the Secretary of Energy to 
direct the National Petroleum Council to issue a report with 
respect to petrochemical refineries in the United States, and 
for other purposes, 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

    The bill requires the Secretary of Energy to direct the 
National Petroleum Council to issue a report on petrochemical 
refineries in the United States.

                  BACKGROUND AND NEED FOR LEGISLATION

    Refineries play a key role in United States energy security 
by converting crude oil into petroleum products. The 
International Energy Agency characterizes petrochemicals as 
``part of the fabric of our societies.'' Our daily lives depend 
on petroleum products across the energy system from 
transportation fuels to electricity generation to chemical 
feedstocks.
    The U.S. Energy Information Administration (EIA) reported 
that from 2020 to 2022, refining capacity in the United States 
decreased by more than one million barrels of fuel per day. 
Over the same time period, the American Fuel and Petrochemical 
Manufacturers referenced that the number of operable petroleum 
refineries dropped from 135 to 128 refineries. As of March 3, 
2023, domestic refineries were running at 86.0% utilization of 
refinery operable capacity. EIA projects that United States 
refinery utilization will average 90.8% in 2023.
    Several comments by members of the Biden Administration 
have sent mixed or negative messages about the future for the 
refining industry. For example, President Biden called on 
refineries to ``take immediate actions to increase the supply 
of gasoline, diesel, and other refined products,'' while 
simultaneously criticizing refineries that ``refinery profit 
margins well above normal being passed directly onto American 
families are not acceptable.'' Given that refineries are 
already operating at near maximum capacity, policy signals from 
the Biden Administration that adversely influence investment 
certainty are problematic.
    Studying refining capacity would allow the federal 
government to better understand how to increase refining 
capacity in the United States, thereby unleashing American 
energy and lowering gasoline prices. The most recent report by 
the National Petroleum Council on refining was published in 
2004, so it is well past time to analyze domestic refining 
capacity and corresponding challenges.

                            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. 1085. 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. 
1085, without amendment, to the full Committee by a record vote 
of 17 yeas and 11 nays. On March 9, the full Committee on 
Energy and Commerce met in open markup session and ordered H.R. 
1085 favorably reported to the House by a record vote of 31 
yeas and 18 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. 1085 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 requiring the Secretary of Energy to direct the 
National Petroleum Council to issue a report on petrochemical 
refineries in the United States.

                    DUPLICATION OF FEDERAL PROGRAMS

    Pursuant to clause 3(c)(5) of rule XIII, no provision of 
H.R. 1085 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. 1085:
    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 Mark Menezes, Former United 
        States Deputy Secretary of Energy, Department of 
        Energy;
           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. 1085. 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. 1085 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 provides a short title of ``Researching Efficient 
Federal Improvements for Necessary Energy Refining (REFINER) 
Act.''
    Section 2 requires the Secretary of Energy to direct the 
National Petroleum Council to submit a report on petrochemical 
refineries within 90 days of enactment. The report must include 
the contributions of petrochemical refineries to energy 
security in the United States, the current capacity of 
refineries, opportunities to expand existing refinery capacity, 
and risks to petrochemical refineries in the United States. The 
report must also assess Federal or State executive actions, 
regulations, or policies that contributed to a decline in 
refinery capacity.

         CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    This legislation does not amend any existing Federal 
statute.

                             MINORITY VIEWS

    H.R. 1085 would require the National Petroleum Council 
(NPC) to submit to Congress a report detailing certain analyses 
about the U.S. domestic petrochemical refining industry. By 
choosing to have the NPC carry out the report as opposed to a 
governmental agency, the authors of the bill put their thumbs 
on the scale to influence the output of the report before the 
process of writing it has even begun.
    The NPC is a federal advisory committee comprised of 
members of the oil and gas industries. The NPC occasionally 
transmits reports to the Department of Energy (DOE) at the 
request of DOE. While the NPC serves as a useful tool to 
understand the oil and gas industry's expertise on a certain 
issue, its views by definition cannot be separated from those 
of the oil and gas industry. If the majority would like a 
government report free from institutional interests on the 
American petrochemical refining sector, they could have written 
to the Government Accountability Office, the Congressional 
Research Service, or passed a law requiring DOE to author a 
report with a requirement that DOE consult with the NPC. By 
requiring that the NPC author the report, the majority is 
elevating the fossil fuel industry's views over all others.
    Furthermore, the bill is worded so as to exclude from the 
report's consideration a major factor in the decline of 
American petrochemical refining capacity: the lifting of the 
crude oil export ban in 2015. Since the ban was repealed at the 
end of 2015, the number of operating refineries in the U.S. has 
decreased by 10, and the crude oil throughput capacity of 
refineries on the East Coast has decreased by 36 percent.\1\ 
But, H.R. 1085 only directs the report to include ``. . . any 
Federal or State executive actions, regulations, or policies'' 
that have impacted refining capacity--which excludes the 
statutory changes included in section 101 of division O of the 
Consolidated Appropriations Act, 2016 that lifted the crude oil 
export ban.\2\ The majority has crafted the bill to work 
backward from their desired result to generate a set of 
instructions that will lead the NPC to craft a report with the 
conclusions they want.
---------------------------------------------------------------------------
    \1\U.S. Energy Information Administration, Refinery Capacity Report 
(June 21, 2022).
    \2\Consolidated Appropriations Act of 2016, Pub. L. No. 114-113, 
129 U.S.C. Sec. 2987.
---------------------------------------------------------------------------
    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]