Major Projects, Major Problems

Press Release

Date: Sept. 15, 2014
Location: Washington, DC

The House Energy and Commerce Committee today released a policy paper written by the majority staff entitled "Major Projects, Major Problems," which highlights how the Obama administration has stymied the construction and expansion of major job-creating projects, particularly in the energy field.

America has a long history of transforming big ideas into big projects, and the federal government previously supported and encouraged this success, but as the report notes, "over the last few decades, the federal government has begun to assume a new role in major projects - that of an obstructionist. A tangle of regulatory red tape routinely delays these big endeavors, and sometimes discourages them outright. The level of federal interference has reached unprecedented levels under President Obama. Despite the president's pledge in the 2014 State of the Union address to "cut red tape,' the administration is aggressively interpreting existing authority to create lengthy permitting delays for proposed projects, while also adding a new layer of regulatory hurdles."

This Obama administration has been especially disruptive when it comes to energy. The committee points to a number of energy projects that have been held up or shelved due to interference from the administration, including Keystone XL pipeline and other much-needed pipelines, energy export terminals, and new state-of-the art clean coal plants. The president has also used his power to restrict the production of American energy by blocking drilling offshore and on federally controlled lands and preventing new mining activity.

"Next week will mark six years since the application to build the Keystone XL pipeline was first submitted, but this outrageous delay is sadly only one of many examples of the Obama administration's obstruction to building major projects and creating jobs," said Energy and Power Subcommittee Chairman Ed Whitfield (R-KY). "The president has constructed a regulatory environment that discourages growth and expansion, pursuing policies to ensure that we can't build another coal plant in America or develop a vast majority our energy resources."

Commerce, Manufacturing, and Trade Subcommittee Chairman Lee Terry (R-NE) added, "President Obama likes to talk about job creation yet he continues to hold up the construction of job-creating projects like the Keystone XL pipeline, and while he often speaks to the importance of American manufacturing, his administration continues put up new roadblocks to building new factories. Instead of more red tape, America needs commonsense reforms to help restore our nation of builders and unleash the American manufacturing renaissance."

While the committee's report paints a grim picture for the prospect of building big things, it also offers solutions to fix the problems, including a number of committee bills already passed by the House. The report notes, "The extensive list of stalled projects has sparked a number of reform bills focusing on a specific project or industry. The House has passed with bipartisan support: H.R. 3, the "Northern Route Approval Act,' a measure to approve Keystone XL; H.R. 1900, the "Natural Gas Pipeline Permitting Reform Act,' to expedite future natural gas pipeline approvals; H.R. 3301, the "North American Energy Infrastructure Act,' to eliminate unnecessary steps in authorizing energy infrastructure projects that cross the Canadian or Mexican border; and H.R. 6, the "Domestic Prosperity and Global Freedom Act,' to expedite the approval of natural gas export facilities. The House has also passed H.R. 3826, the "Electricity Security and Affordability Act,' to help maintain a role for coal in a diverse, affordable, and reliable electricity mix."

All of these solutions are part of the committee's plan to build the Architecture of Abundance, and will also be included in a comprehensive energy package scheduled for a vote on the House floor this week.

"America has always been a nation of big ideas and big projects, but the president's policies are making it harder and harder for our nation of builders to be successful. But even despite new regulatory obstacles, America's entrepreneurial spirit has prevailed -- we are now in the midst of an energy revolution and we are sitting at the cusp of a manufacturing renaissance. Yet we will only realize the benefits of these achievements if we have policies in place that encourage growth and investment," said Energy and Commerce Committee Chairman Fred Upton (R-MI). "We can't build big things with new layers of red tape standing in the way. We have already laid the groundwork in the House to eliminate these barriers and construct the Architecture of Abundance, and our work will continue in the weeks, months, and years ahead. I welcome the Senate to join us in this important endeavor so America can start thinking and building big again."


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