Hearing of the House Energy and Power Subcommittee of the Energy and Commerce Committee - H.R. 1900, Natural Gas Pipeline Permitting Reform Act

Hearing

Today's hearing focuses on Congressman Pompeo's bill, which addresses the permitting of interstate natural gas pipelines.

The U.S. has more than 200,000 miles of interstate natural gas pipelines, and more new pipelines are built every year. Between 2009 and 2012, the Federal Energy Regulatory Commission or FERC, approved over 3,000 miles of new pipelines in 30 states. On average, it took FERC only nine and a half months to review and approve applications for pipeline projects.

Earlier this year, GAO examined FERC's permitting process and found it to be predictable and consistent. This process is getting pipelines permitted and built.

That is what the pipeline companies told the Subcommittee in May when they testified that "the interstate natural gas pipeline sector enjoys a favorable legal and regulatory framework for the approval of new infrastructure." They testified that pipeline development over the last decade shows that "the natural gas model works."

Unfortunately, the bill we are considering today proposes to carelessly change a
regulatory system that is working fine.

The bill would require FERC to approve or deny new pipeline certificates within 12
months, regardless of their potential impacts or complexity. It would require all other federal and state agencies to approve or deny required permits within 90 days after FERC completes its environmental review.

According to FERC staff, some projects, due to their complexity, length, path, and level of public concern, take longer than 12 months to review to get right.

Arbitrarily limiting this time will deny FERC and the public the opportunity to fully
consider these projects.

And it will likely result in slower rather than faster permitting. If FERC is unable to
properly evaluate a project within 12 months, the bill's rigid deadline could force FERC to simply deny the permit. A project that currently could be approved in 15 months after a full review might instead be denied in 12 months under this bill.

The bill's limits on other agencies would create additional problems.

The Environmental Protection Agency says that the bill's 90-day deadline could
undermine protections under the Clean Air Act and the Clean Water Act. The U.S. Army Corps of Engineers came to the same conclusion, stating that the bill would "allow certain activities to proceed despite potential adverse and significant impacts." Other agencies and statutes will also be affected. This bill threatens the Bureau of Land Management's ability to manage rights-ofway across federal lands and Fish and Wildlife Service's ability to protect endangered species.

If any agency does not approve or deny a permit within 90 days, the bill states that the permit automatically goes into effect.

That could create new legal vulnerabilities for pipeline permits by giving a pipeline
company a permit without ensuring that the environment and public health are protected. Alternatively, agencies could be forced to simply deny the permits when they are prohibited from taking the time needed for reviews required by federal law.

American families expect our laws to protect health, safety, and the environment
whenever pipelines are built. We shouldn't put those protections at risk.

We should also remember that when FERC approves a pipeline, it grants the power of
eminent domain, which allows a pipeline company to take property from landowners who do not want to sell. That's not something that should happen without agencies taking the time they need for thorough analysis and thoughtful decision-making. But with this bill, we get rushed decisions and probably more project denials. No one benefits from that, not even the pipeline companies.

Mr. Chairman, this bill has not been well thought out. It is good that we are having a hearing so that members can better understand the problems with this bill.

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