WASHINGTON, DC - The Subcommittee on Energy, chaired by Rep. Fred Upton (R-MI), today held a hearing examining three bills that seek to modernize the nation’s energy laws for the 21st century. Members received feedback from a panel of witnesses on legislation that would streamline the approval process for liquefied natural gas (LNG) exports and modernize the Public Utility and Regulatory Policy Act (PURPA) of 1978 to reflect increased competition in today’s wholesale electricity markets.
Steven Winberg, Assistant Secretary for Fossil Energy, U.S. Department of Energy, discussed the department’s willingness to increase LNG exports to the world, commenting, “We continue to support expeditious approval of natural gas exports, which provide both economic and strategic to the United States and our allies. The Department appreciates the ongoing bipartisan efforts to address our nation’s energy challenges, and looks forward to working with the Committee on the legislation on today’s agenda and any future legislation."
Charlie Riedl, Executive Director, Center for Liquified Natural Gas, discussed his support for Rep. Bill Johnson’s (R-OH) H.R. 4605, Unlocking Our Domestic LNG Potential Act and H.R. 4606, Ensuring Small Scale LNG Certainty and Access Act, “The United States enjoys an enormous domestic natural gas resource base, and it is uniquely positioned to compete on a global level for LNG markets, while still providing an affordable and environmentally-advantageous fuel source for American manufacturers, businesses and individual consumers. Streamlining the approval process for LNG export applications from the United States can create tens of thousands of American jobs and reduce global greenhouse gas emissions, while preserving a competitive advantage for American manufacturers and benefiting the U.S. economy."
Speaking in support of Rep. Tim Walberg’s (R-MI) H.R. 4476, PURPA Modernization Act of 2017, Travis Kavulla, Vice Chairman, Montana Public Service Commission, testifying on behalf of the National Association of Regulatory Utility Commissioners (NARUC), stated, “NARUC is pleased that H.R. 4476, in Section 2, addresses PURPA’s current disaggregation problem by reforming the ‘one-mile rule.’ Some QF developers have been able to work around the FERC small renewable QF criteria by disaggregating their projects into multiple smaller projects, thereby availing themselves of more advantageous avoided cost calculations to the detriment of retail ratepayers. … This legislation is an important and significant leap forward in providing us with the ability to secure a reliable and affordable energy future for the nation."
Timothy Sparks, Vice President of Electric Grid Integration, CMS Energy, echoed Mr. Kavulla’s support, commenting, “This 40-year law has succeeded in its mission - to promote the growth of renewable energy - but desperately needs updating. Supported not only by Consumers Energy, but also by the Edison Electric Institute, the National Rural Electric Cooperative Association, and the American Public Power Association, along with a number of other businesses across the nation, we strongly urge the passage of H.R. 4476."
Building on the committee’s recent bipartisan trip to storm-ravaged Puerto Rico and U.S. Virgin Islands, #SubEnergy Chairman Upton spoke to the important role natural gas could play in modernizing their grid, stating, “Puerto Rico’s grid was in very rough shape to begin with and many of their power plants were so outdated they were still burning petroleum. I believe there is real potential for Puerto Rico to expand their use of natural gas, and these bills - especially the small-scale LNG bill - can be part of the solution."
“Under my chairmanship, I’ve encouraged our members to put consumers first and focus on way to grow our economy. To do this effectively, we need to look to see where we can update our laws and regulatory policies for the 21st Century," said full committee Chairman Greg Walden (R-OR). “I’d like to thank Mr. Johnson and Mr. Walberg for their hard work on these bipartisan bills."
