House Passes Pipeline Permit Reform Legislation
The U.S. House of Representatives on Nov. 21 passed the Natural Gas Permitting Reform Act, HR-1900 (here), sponsored by Rep. Mike Pompeo, R-Kan. The bill, passed in a vote of 252 to 165 largely along partisan lines, aims to expedite pipeline permitting (see 13112003). The legislation received widespread support from Republican House members and the manufacturing industry in the days leading up to and after passage.
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“This legislation will modernize the federal review process for natural gas pipeline permit applications and expedite approvals,” said Rep. Leonard Lance, R-N.J., in The Hill on Nov. 20 (here). “The intent here is simple: require decision-making in a timely manner and get projects moving. This legislation will help make a difference in making sure natural gas is readily available across the country.” The legislation will assist the resurgence of U.S. domestic manufacturing, said National Association of Manufacturers Senior Director for Media Relations Jamie Hennigan in a Nov. 21 post (here). “To capitalize on the promise of natural gas, though, manufacturers need the right infrastructure in place to ensure it can be delivered quickly, efficiently and safely from the well to the consumer,” said Hennigan. “HR-1900 would help streamline the permitting process for natural gas pipeline projects, strengthening our energy infrastructure and global competitiveness. Manufacturers support passage of this crucial legislation."
The Obama Administration opposes the legislation, due to the imposition of “rigid, unworkable timeframes” for the FERC and other agencies to process pipeline project licenses, said a White House press release (see 13112003). “The bill's requirements could force agencies to make decisions based on incomplete information or information that may not be available within the stringent deadlines, and to deny applications that otherwise would have been approved, but for lack of sufficient review time,” said the White House. “For these reasons, the bill may actually delay projects or lead to more project denials, undermining the intent of the legislation.” Should HR-1900 arrive at President Barack Obama’s desk, administration officials would recommend a veto, said the White House.