[House Report 118-27]
[From the U.S. Government Publishing Office]


118th Congress }                                          { Report 
                        HOUSE OF REPRESENTATIVES
 1st Session   }                                          { 118-27
======================================================================
 
EXPRESSING THE SENSE OF CONGRESS THAT THE FEDERAL GOVERNMENT SHOULD NOT 
 IMPOSE ANY RESTRICTIONS ON THE EXPORT OF CRUDE OIL OR OTHER PETROLEUM 
                                PRODUCTS

                                _______
                                

   March 23, 2023.--Referred to the House Calendar 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. Con. Res. 17]

    The Committee on Energy and Commerce, to whom was referred 
the concurrent resolution (H. Con. Res. 17) expressing the 
sense of Congress that the Federal Government should not impose 
any restrictions on the export of crude oil or other petroleum 
products, having considered the same, reports favorably thereon 
with amendments and recommends that the concurrent resolution 
as amended be agreed to.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Committee Action.................................................     3
Committee Votes..................................................     3
Oversight Findings and Recommendations...........................     6
New Budget Authority, Entitlement Authority, and Tax Expenditures     6
Congressional Budget Office Estimate.............................     6
Federal Mandates Statement.......................................     6
Statement of General Performance Goals and Objectives............     6
Duplication of Federal Programs..................................     6
Related Committee and Subcommittee Hearings......................     6
Committee Cost Estimate..........................................     7
Earmark, Limited Tax Benefits, and Limited Tariff Benefits.......     7
Advisory Committee Statement.....................................     7
Applicability to Legislative Branch..............................     7
Section-by-Section Analysis of the Legislation...................     8
Changes in Existing Law Made by the Bill, as Reported............     8
Minority Views...................................................     9

    The amendments are as follows:
  Strike the preamble and insert the following:

Whereas the United States has enjoyed a renaissance in energy production, 
with the expansion of domestic crude oil and other petroleum product 
production contributing to enhanced energy security and significant 
economic benefits to the national economy;

Whereas, in 2015, Congress recognized the need to adapt to changing crude 
oil market conditions and repealed all restrictions on the export of crude 
oil on a bipartisan basis;

Whereas section 101 of title I of division O of the Consolidated 
Appropriations Act, 2016 (42 U.S.C. 6212a) established the national policy 
on oil export restriction, prohibiting any official of the Federal 
Government from imposing or enforcing any restrictions on the export of 
crude oil with limited exceptions, including a savings clause maintaining 
the authority to prohibit exports under any provision of law that imposes 
sanctions on a foreign person or foreign government (including any 
provision of law that prohibits or restricts United States persons from 
engaging in a transaction with a sanctioned person or government), 
including a foreign government that is designated as a state sponsor of 
terrorism;

Whereas lifting the restrictions on crude oil exports encouraged additional 
domestic energy production, created American jobs and economic development, 
and allowed the United States to emerge as the leading oil producer in the 
world;

Whereas, in 2019, the United States became a net exporter of petroleum 
products for the first time since 1952, and the reliance of the United 
States on foreign imports of petroleum products has declined to historic 
lows; and

Whereas free trade, open markets, and competition have contributed to the 
rise of the United States as a global energy superpower: Now, therefore, be 
it

  Strike all after the resolving clause and insert the 
following:

That it is the sense of Congress that the Federal Government should not 
impose--
          (1) overly restrictive regulations on the exploration, 
        production, or marketing of energy resources; or
          (2) any restrictions on the export of crude oil or other 
        petroleum products under the Energy Policy and Conservation Act 
        (42 U.S.C. 6201 et seq.), except with respect to the export of 
        crude oil or other petroleum products to a foreign person or 
        foreign government subject to sanctions under any provision of 
        United States law, including to a country the government of 
        which is designated as a state sponsor of terrorism.

                          PURPOSE AND SUMMARY

    The resolution expresses the sense of Congress that the 
United States should not impose any restrictions on the export 
of crude oil or other petroleum products or overly restrictive 
regulations on the exploration, production, or marketing of 
energy resources.

                  BACKGROUND AND NEED FOR LEGISLATION

    In 2015, Congress repealed all restrictions on the export 
of crude oil on a bipartisan basis.\1\ The Energy Policy and 
Conservation Act (EPCA) of 1975 prohibited the export of 
domestically produced crude oil up until 2015. Repealing this 
provision encouraged domestic energy production, created 
American jobs, spurred economic development and propelled the 
United States to becoming the world's leading oil producer. 
Economic studies have confirmed that repealing the crude oil 
export ban lowered gasoline prices for consumers. The repeal of 
the export ban increased the incentive for domestic production 
and spurred the fracking revolution which began a production 
boom. The increase in production, both in the United States and 
globally, yielded a decline in gasoline process of 4.6 cents 
per gallon and a reduction of consumer spending on refined 
productions and natural gas by $92 billion over the last six 
years.\2\
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    \1\42 U.S.C. 19 6212(a).
    \2\https://www.api.org//media/files/news/2022/07/25/economic-
benefits-of-crude-oil-exports-retrospective.
---------------------------------------------------------------------------
    Further, allowing the export of American crude reduces the 
need for United States' allies to rely on adversarial and 
corrupt nations for energy, bolstering our foreign policy 
leadership and energy security. In 2015, the United States 
imported a net of 4.7 million barrels of petroleum products per 
day. In 2022, next exports were at 874,000 per day. Lifting the 
export ban reversed the United States from being a net importer 
to exporter.
    Recently, members of the Biden administration and Congress 
have advocated for restricting exports to reduce domestic gas 
prices. In 2015, Congress established the national policy on 
oil export restriction by prohibiting any official of the 
Federal Government from imposing or enforcing any restrictions 
on crude oil, with limited exceptions. The policy maintained 
the authority to prohibit exports under any provision of law 
that imposes sanctions on a foreign person or government. The 
Resolution expresses the clear intent that the president and 
all Federal agencies follow the law as prescribed by Congress 
when it lifted the oil export ban in 2015.

                            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. Con. Res. 
17. 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. 
Con. Res. 17, without amendment, to the full Committee by a 
recorded vote of 14 yeas and 10 nays. On March 9, the full 
Committee on Energy and Commerce met in open markup session and 
ordered H. Con. Res. 17, as amended, favorably reported to the 
House by a recorded 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:


                 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. Con. Res 17 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 expressing the sense of Congress that the United 
States should not impose any restrictions on the export of 
crude oil or other petroleum product (subject to narrow 
limitations) or impose overly restrictive regulations on the 
exploration, production, or marketing of energy resources.

                    DUPLICATION OF FEDERAL PROGRAMS

    Pursuant to clause 3(c)(5) of rule XIII, no provision of H. 
Con. Res. 17 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. Con. Res. 17:
    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. Con. Res. 
17. 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. Con. Res. 17 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

    The resolution expresses the sense of congress that the 
Federal government should not impose:
          1) Overly restrictive regulations on the exploration, 
        production, or marketing of energy resources; or any 
        restrictions on the export of crude oil or other 
        petroleum products under the Energy Policy and 
        Conservation Act (42 U.S.C. 6201 et seq.), except with 
        respect to the export of crude oil or other petroleum 
        products to a foreign person or foreign government 
        subject to sanctions under any provision of United 
        States law, including to a country the government of 
        which is designated as a state sponsor of terrorism.

         CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    This legislation does not amend any existing Federal 
statute.

                             MINORITY VIEWS

    H. Con. Res 17 expresses opposition to any limitations on 
the export of crude oil or petroleum products from the United 
States. It is a resolution that carries zero force of law were 
it to be passed by the House and the Senate. Furthermore, it 
contains a view contrary to the position the House took when it 
passed H.R. 22, the ``Protecting America's Strategic Petroleum 
Reserve From China Act,'' earlier this Congress and does not 
contain strong enough caveats to protect the public interest of 
the United States.
    The resolution opposes ``any restriction on the export of 
crude oil or other petroleum products. . .''. This position is 
in direct contravention of the position staked out by the House 
of Representatives when it passed H.R. 22, which prohibited the 
export of petroleum products drawn down from the Strategic 
Petroleum Reserve (SPR) to China.\1\ Data from the Energy 
Information Administration shows that, in 2022, the United 
States sent roughly 633,000 barrels per day of crude oil and 
petroleum products to China.\2\ Republicans from the Committee 
spoke passionately on the House floor about the danger of 
sending strategic crude oil and petroleum products to China--
apparently they were only referring to the 2 percent of U.S. 
crude oil exports to China that came from the SPR in 2022.
---------------------------------------------------------------------------
    \1\H.R. 22.
    \2\U.S. Energy Information Administration, Exports by Destination 
(Feb. 28, 2023).
---------------------------------------------------------------------------
    The majority claims that section 101 of Division O of the 
Consolidated Appropriations Act, 2016 repealed all restrictions 
on the export of crude oil. This is not the case. Section 
101(d) clearly lays out exceptions to the general repeal of the 
crude oil export ban, including an ability of the President to 
impose ``export licensing requirements or other restrictions on 
the export of crude oil from the United States''\3\ if the 
President declares a national emergency, if the export 
restrictions apply to people or countries sanctioned by the 
United States, or if the Department of Commerce and the 
Department of Energy find that the export of crude oil has 
caused sustained material oil supply shortages or a sustained 
increase in oil prices above the global price.\4\
---------------------------------------------------------------------------
    \3\Consolidated Appropriations Act of 2016, Pub. L. No. 114-113, 
129 U.S.C. Sec.  2987.
    \4\Id.
---------------------------------------------------------------------------
    During the Full Committee markup, Ranking Member Frank 
Pallone (D-NJ) offered an amendment that would have added a 
caveat to the resolution, approving of restrictions on the 
export of crude oil and petroleum products when it was in the 
public interest of the United States. This amendment failed on 
a recorded vote.
    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]