Natural gas exports found a place in a major defense spending bill Wednesday, as the legislation makes its way through the House’s markup process.
The amendment to the National Defense Authorization Act for fiscal 2017 would set a strict 30-day deadline for the Energy Department to approve liquefied natural gas (LNG) export terminals.
The amendment was framed as a hedge against Russia and others that would look to use natural gas as a weapon to impose their will over U.S. allies in Europe.
Reps. Jim Bridenstine, R-Okla., who proposed the amendment, told the story of how Lithuania used LNG to overcome dependence on Russian energy imports. Russia had repeatedly used the threat of shutting off the spigot to impose its will, he said. “One LNG import terminal changed the game,” he said. “Let’s help repeat that story. LNG exports are a win-win for our allies, a win for our partners and a win for the American economy.”
The amendment would stop the Energy Department from prolonging the export terminal approval process so billions of dollars of investment are not stranded due to agency foot-dragging and prolonged court fights, Bridenstine said. The agency must conduct an environmental review and a national interest determination before issuing a permit to allow the export of LNG. The amendment would not interfere with the agency’s ability to conduct the reviews, but will establish firm deadlines for each review to ensure the process cannot be prolonged beyond what is practical for the industry.
A similar measure was approved in a comprehensive energy bill passed last week on the Senate floor. The energy bill’s provision would require the energy secretary to make a final decision on an LNG export application no more than 45 days after project review have been published. It also provides for expedited judicial review of legal challenges to LNG export projects, according to a summary.
The U.S. has become a major oil and gas producer due to the shale drilling boom, which has encouraged companies to begin building export terminals and seek permit approvals from the government to begin shipping natural gas abroad. The permit approval process has been long and drawn out. Many activist groups have sought to oppose the permits through litigation as part of a campaign to keep fossil fuels in the ground in order to combat climate change.
Nevertheless, the Energy Department has begun approving the permits, resulting in some of the first shipments of LNG leaving U.S. destined for Latin America and, for the first time this month, Europe.
“The House Armed Services Committee’s passage of LNG exports legislation is the latest example of bipartisan recognition by Congress that the U.S. is an energy superpower,” American Petroleum Institute Executive Vice President Louis Finkel said. “U.S. LNG exports not only provide international consumers with greater choice, but also help them break dependence on nations that use their energy resources as a diplomatic and political weapon.”
