Improving Interagency Coordination for Pipeline Reviews Act
Floor Speech
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Mr. LATTA. Mr. Speaker, pursuant to House Resolution 936, I call up the bill (H.R. 3668) to promote interagency coordination for reviewing certain authorizations under section 3 of the Natural Gas Act, and for other purposes, and ask for its immediate consideration in the House.
The Clerk read the title of the bill.
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Mr. LATTA. 3668.
Mr. Speaker, our Nation is at the crossroads when it comes to powering our future. This pivotal moment will shape our economic trajectory, national security, and global competitiveness.
After years of modest growth in electricity consumption, the next 5 years could see upwards of 128 gigawatts of new demand. The vast majority of this demand growth will require new, baseload, dispatchable power, and natural gas will fill that gap.
Unfortunately, the build-out of interstate natural gas pipeline infrastructure has faced significant challenges. Approvals are often delayed due to a lack of coordination, pure inaction, or outright obstruction by States and relevant Federal agencies.
Section 401 of the Clean Water Act has turned into a procedural chokepoint with varying application and drawn-out State reviews, undermining otherwise federally authorized projects.
This has resulted in energy shortages in certain areas of the country, exposing consumers to high prices and our grid to increased vulnerability.
In fact, a recent study estimated that pipeline blockades have already driven average natural gas prices up by 160 percent in major demand centers. This doesn't have to be the case.
Activist States like New York have used their delegated authority under section 401 to repeatedly kill interstate natural gas pipeline projects. These Clean Water Act denials haven't been because of legitimate water quality impact concern. The basis of these blockades has been in the name of radical climate agendas, ignoring what is best for consumers, grid reliability, and economic growth.
During the 2013 to 2021 time period, several pipeline projects were canceled, leading to a pipeline capacity growth of only 26 percent. Meanwhile, natural gas demand increased by 49 percent. This trend will be compounded if there are not statutory reforms.
H.R. 3668 would strengthen the Federal Energy Regulatory Commission's, FERC, lead agency role and further define the process for participating agencies.
Additionally, under this legislation, instead of having to obtain a section 401 certification from a State through its EPA-delegated authority, FERC would incorporate this water quality review into its existing National Environmental Policy Act, NEPA, review, including any terms or conditions proposed by States that are required for compliance with the underlying statute.
Opponents argue that this legislation will gut the Clean Water Act. However, this legislation doesn't even amend the Clean Water Act. It maintains statutory protections of legitimate water quality concerns.
FERC already analyzes water quality impacts as part of the NEPA process, imposes mitigation measures as needed, and is equipped to respond to raised concerns as part of the review process.
Again, nothing in this legislation alters the environmental review of these projects. Expanding natural gas pipeline capacity is estimated to save Americans $76 billion by 2040.
Without statutory reforms to section 401 of the Clean Water Act, these savings will not be realized, our Nation will not be able to compete with China in the intelligence race, and our electric grid will experience serious vulnerabilities.
Mr. Speaker, I urge my colleagues to support this legislation, and I reserve the balance of my time.
Mr. Speaker, just to point out some things here, when you are talking about changes in electricity prices over the last 20 years, it is important to look at this chart. This is from the EIA. If you look at the top 12--and as the gentleman from North Carolina pointed out about his legislation, especially in New England, the States up there, look at what has happened here. Look at California, Hawaii, Maine, Massachusetts, Connecticut, and Rhode Island in the top six. We can see these prices going up. Round up the top 12, and Vermont, New Hampshire, New York, and New Jersey are also in there. What is happening is why we have to have this legislation. When States are pushing back on trying to get the pipelines in and pushing for just one type of energy source, it is hurting their people.
We know that because, earlier this year, there was an article that came out that the New England Governors were all complaining that their citizens were going to pay 40 percent more for utility prices this fall. Why is that? It is right here. This is why this legislation is needed.
Mr. Speaker, natural gas is the most affordable and reliable energy solution. Also, if it comes from the United States, then it is clean. An expanded pipeline capacity is critical to lowering costs for American families and businesses.
We have had hearings on pipeline safety this past summer.
For too long, States have used section 401 authority as a one-State veto of multistate projects with national significance.
Again, the facts speak for themselves. Mr. Speaker, if you want to look at the top 12, it is New England, New Jersey, and New York. If you want, Mr. Speaker, ask these people who live there, or ask their Governors, their State legislators, or their regulators why their prices are so high.
It is simple. It is because, again, these States have used that veto.
As global natural gas demand is projected to continue to grow for decades to come, investment in pipeline projects will be of utmost importance for keeping prices low for our Nation and to keep it secure.
In the 1970s, when we had an oil embargo across this country when the Arabs cut us off, we were told we had no energy in this country. What has happened? If you put the right laws in place and have the regulations that follow and turn the entrepreneurs and innovators loose in this country, we are number one in the world--number one in the world. We produce more natural gas. It is the cleanest.
This is what we are looking at. We had a hearing early this year with our RTOs and ISOs that regulate across the energy grid out there. They told us all the same thing. We have to produce more energy in this country, not less, and at the same time, we better not be taking any generation offline.
Right now, we are scheduled to take 115 gigawatts of power offline in this country. Our adversaries in Communist China are doing what? They are outproducing us. We are projected to need 170 gigawatts on top of that.
It is time that people wake up. We have an all-of-the-above policy in this country. Republicans brought it forth in 2008. In 2008, we said that we are not going to pick the winners and losers, and that is important. When the Federal Government wants to go out there and pick the winners and losers, this country is going to lose.
H.R. 3668 is the solution. I thank the gentleman from North Carolina (Mr. Hudson) for his leadership, and I urge all of my colleagues to support this bill.
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