Domestic Prosperity and Global Freedom Act

Floor Speech

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Mr. TONKO. I thank the gentleman for his yielding, and I thank him for his work as ranking member on the Energy and Commerce Committee.

Mr. Chairman, with H.R. 6, we are embarking on a policy that will lock us into higher and more volatile natural gas prices, and that will erode a key advantage we have for domestic manufacturing, that being low natural gas prices.

Natural gas is used widely throughout our economy. It is, indeed, a valuable commodity, and we should be setting policy to ensure that we use it efficiently and effectively. LNG terminals are expensive to build and require a lot of energy to operate. The contracts signed by exporters commit them to exporting LNG for anywhere from 10 to 20 years.

We already had a small taste of what happens if there is an unexpected event that increases domestic demand when ready supplies are low and exports have increased.

At a time when we are producing record amounts of propane, we had some of the worst shortages and price spikes we have seen in years. It was not entirely due to

export increases, but it was definitely a factor. Many of our communities are paying the environmental costs of this natural gas boom. This bill is now going to deny them the benefits associated with sacrifices.

There are very real concerns that this legislation would harm economic growth, job creation, and American manufacturing. This bill will not allow the adequate consideration of the public interest, including impacts on United States' consumers and manufacturers, before granting the approval of natural gas exports to countries with which we do not have a free trade agreement.

In fact, because we do have free trade agreements with a number of countries, exports of LNG to them do not require any public interest analysis. The DOE has approved billions of cubic feet to be exported to nations with which we have free trade agreements and to others as well.

We are in the midst of a manufacturing renaissance due, in part, to an abundance of affordable domestic natural gas. We have seen 12 consecutive months of growth in the manufacturing sector and a growing trend of the reshoring of jobs back to the United States.

Why would we want to turn that trend around?

Exports on the scale that this legislation would enable will raise domestic natural gas and electricity prices for every American and undermine our manufacturing competitiveness.

The United States' natural gas prices are less than one-half of Europe's and one-third less than in places like Japan and South Korea. The integration of the United States' and Asia's natural gas markets would lead to increases in prices for consumers and businesses, undoing the economic conditions that have led to the recent growth in American manufacturing.

The industrial sector represents some 22 percent of American energy use, with natural gas being the single largest input. Energy is consumed in the industrial sector for a wide range of purposes--from processing to heating, cooling, and as feedstocks to produce non-energy products.

The chemicals, pulp and paper, iron and steel, refining, and nonmetallic minerals industries account for about one-half of all energy used in this sector.

These industries alone represent millions of American jobs. That is why I am so concerned that the Energy Information Administration, the EIA, found that increased natural gas exports will ``lead to increased natural gas prices,'' and ``larger export levels lead to larger domestic price increases.''

The EIA looked specifically at the potential impact of these price increases on United States' manufacturers, and it found that a high level of LNG exports could increase natural gas costs for the industrial sector by between 5 and 27 percent annually.

The amendment I offered to the Rules Committee, an amendment which was not made in order, would have prevented section 2 of this bill from taking effect until there would be a determination that LNG exports would not adversely impact the competitiveness of the United States' manufacturing community.

American employers are struggling to compete in this global economy, especially with the jobs in the manufacturing sector. Domestic manufacturers are competing with countries that have low wages, limited environmental and worker protections, and manipulated currencies. Low-priced, abundant natural gas is a competitive advantage for domestic manufacturers. Let's not give that up.

This Congress has an obligation to prevent the loss of American manufacturing jobs. The revitalization of the American manufacturing industry and the bringing back of quality jobs from overseas should be the cornerstone of our efforts in Washington in order to help the private sector thrive and to put our people back to work.

This bill is only good for the natural gas-producing industry, and its increased benefits will be coming at everyone else's expense.

With that, I urge the defeat of this bill.

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