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Bipartisan Bill Seeks to Fix LNG Permitting Red Tape, Oversight

Bipartisan legislation introduced late Tuesday in the House would create a federal working group to help oversee and streamline the permitting of liquefied natural gas facilities.

The previously unreported bill from Texas Reps. Randy Weber (R) and Lizzie Fletcher (D) is the latest attempt by lawmakers to mitigate the Biden administration’s pause on new LNG exports announced in January. The legislation directs the head of the Pipeline and Hazardous Materials Safety Administration to lead the group made up of officials from various agencies, including the Energy Department and the Federal Energy Regulatory Commission.

Several agencies have jurisdiction over the siting, design, maintenance, operation, and safety regulations of LNG facilities.

Lawmakers, industry and environmental activists are bitterly divided over Biden’s pause on new liquefied natural gas export projects pending a federal economic and environmental review by the Energy Department. They agree on one thing: politics played a role in the move, announced at the start of an election year, as Biden courts young voters concerned about climate change.

Some congressional Democrats, including a few in the Texas delegation and Senate Energy and Natural Resources Chairman Joe Manchin (W.Va.), have expressed concern over the LNG pause, particularly over what it means for allies like Ukraine who have relied on American-produced natural gas.

Weber, who represents the Texas Gulf Coast district where much of the country’s LNG infrastructure is located, said in a statement to Bloomberg Government the current permitting and oversight process for facilities is “burdened by redundancy and numerous obstacles, resulting in significant delays” adding that the permitting process often “takes longer than it does for the facilities to be built.”

Fletcher, who represents the Houston area, said in a statement to Bloomberg Government the bill would create “a whole-of-government approach” to improve coordination and safety among federal agencies with oversight over the LNG process. “Today, large LNG export facilities often fall under the jurisdiction of multiple federal agencies with inconsistencies in processes and conflicting safety regulations, which can complicate and prolong the oversight of operators,” she said.

Fletcher and Weber, Energy and Commerce Committee members, also plan to file the stand-alone bill as an amendment to pipeline safety and expansion legislation that a subcommittee will mark up on Wednesday.

The House on Feb. 15 passed legislation (H.R. 7176) with some Democratic support, that would repeal restrictions on export and import of natural gas, take the Energy Department out of the review process, and allow the Federal Energy Regulatory Commission “exclusive authority” to approve permits related to LNG facilities. It effectively would reverse the administration’s pause. The House passed almost identical language earlier this year as part of H.R. 1 the Republicans’ energy package. The Senate is unlikely to take up H.R. 7176.

View this article on Bloomberg Law.