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APGA opposes Hoeven LNG export legislation

Hydrocarbon Engineering,

On 12 November, the American Public Gas Association (APGA) sent a letter to Senate Committee on Energy and Natural Resources Chairman Mary Landrieu, Ranking Member Lisa Murkowski, and Senator John Hoeven, urging the committee to oppose Senator Hoeven’s legislation, the Natural Gas Certainty Act of 2014 (S. 2638) , which was scheduled for a 13 November vote.

S. 2638 would expedite the export of LNG by establishing a 45 day timeframe for DOE to make a public interest determination on an export application from the time the export company files for approval at the Federal Energy Regulatory Commission. According to the APGA, this legislation forces DOE to conduct an analysis of the impacts of an application on the entire US economy and on critical US policies such as reducing dependence on foreign energy in less than two months. The compressed timeframe makes it unlikely that DOE will have sufficient time to consider the impact of exporting LNG and therefore the process will be little more than a rubber stamp for exporters and producers. APGA believes that this legislation is yet another example of Congress picking winners and losers and disregarding America’s critical policy goals in order to satisfy the demand of exporters and producers.

On the morning of 13 November, Senator Hoeven announced that he will pull his bill from committee consideration, as he is working with Secretary of Energy Ernest Moniz to draft an LNG export promotion bill that would gain the secretary’s support. This means that it is highly unlikely that any LNG export legislation will be considered in the same session, but will undoubtedly be considered by the new Republican-controlled Congress. If Hoeven’s bill were to gain Moniz’s support, this bill would seem to have a very high change of passage next year. APGA will continue to argue that exports are a wealth transfer which will harm consumers, manufacturers, and the US economy as a whole.

Adapted from a press release by Emma McAleavey.

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