Witnesses:
Panel I
The Honorable Philip D. Moeller 
Commissioner, Federal Energy Regulatory Commission (FERC)

Panel II
David Markarian 
Vice President, Governmental Affairs, NextEra Energy, Inc.
Maya K. van Rossum 
The Delaware Riverkeeper, Delaware Riverkeeper Network
Rick Kessler 
President, Board of Directors, Pipeline Safety Trust
E. Alex Paris III 
Distribution Contractors Association
Donald F. Santa, Jr. 
President and CEO, INGA

Committee Members Present:
Ed Whitfield (R-KY), Chairman
Fred Upton (R-MI), Full Committee Chairman
Jerry McNerney (D-CA)
Lee Terry (R-NE)
Paul Tonko (D-NY)
Bob Latta (R-OH)
Gene Green (D-TX)
John D. Dingell (D-MI)
Mike Pompeo (R-KS)
Joe Barton (R-TX)
Kathy Castor (D-FL)
Henry A. Waxman (D-CA)
Morgan Griffith (R-VA)
Bill Cassidy (R-LA)

Update: H.R. 1900 was approved by the House Energy and Commerce full committee on Wednesay, July 19, 2013, with a vote of 28-14. A proposed amendment from Representative Jerry McNerney (D-CA), which would have prevented the Federal Energy Regulatory Committee from accepting applications that did not include the use of available technology or practices to minimize methane admissions, was defeated by the committee. The bill now moves to the full House, although there is no indication of a timetable for a vote.

On July 9, 2013 the House Energy & Commerce Subcommittee on Energy and Power held a legislative hearing on H.R. 1900, the Natural Gas Pipeline Permitting Reform Act. H.R. 1900 was introduced by Representative Mike Pompeo (R-KS), and would amend section 7 of the Natural Gas Act by adding three new provisions. The provisions impose a strict 12-month deadline for the Federal Energy Regulatory Commission (FERC) to approve or deny a pipeline certificate request, codify the 90-day regulatory deadline for all relevant agencies to approve or deny a permit application once FERC completes the final environmental document relating to the project, and requires a permit become effective if any of the relevant agencies do not respond by the deadline.

Chairman Whitfield (R-KY) and Representative Pompeo spoke out in support of the bill. They cited the growing need for natural gas pipeline infrastructure and underlined the need for “the law to keep up with technology.” Whitfield went on to say that the pipeline projects presented great opportunities, and that these opportunities could be stalled or lost for good if the “red tape from the past” was not eliminated. According to Pompeo, delays of 90 days or more have increased by 28% since 2005, and delays of 180 days or more have increased by 20%.

The Honorable Phillip D. Moeller, the current commissioner of FERC, testified that FERC could meet the committee’s 12 month deadline, and emphasized the need for high-level agency oversight if the bill were to become law. Questions for Moeller focused on whether we need to improve and streamline the permitting process, and whether the bill would actually improve the permitting process. To which Moeller replied that the process should be streamlined, given that the need for pipelines will probably increase in the near future.

Questions from the other members focused on impact of the bill itself. Representatives Morgan Griffith (R-VA) and Jerry McNerney (D-CA) were concerned that the bill allowed for incomplete applications to be submitted, and that the clock would begin ticking on applications as soon as FERC received an application. Henry Waxman (D-CA), Kathy Castor (D-FL), John Dingell (D-MI), and Gene Green (D-TX) doubted the necessity of the bill, indicating that 90% of permit applications are currently approved or denied within a 12 month period anyway. Representatives Waxman, Castor, and Dingell, as well as Barton and Pompeo asked Moeller if he believed that the bill would streamline the permit process, to which Mr. Moeller replied that it was certainly a possibility, but that it would definitely “add a layer of responsibility to the process.”

The second panel was divided in their support of the bill. Maya K. van Rossum and Ryan Kessler opposed the bill, while David Markarian, E. Alex Paris III, and Donald Santa, Jr. supported it. Kessler and van Rossum argued that it would adversely affect the ability of pipeline projects to comply with environmental and safety regulations, thereby increasing future risks to public and environmental health. Karkarian, Paris, and Santa, said we need to improve the permitting process to meet the growing demand for pipeline infrastructure, and to address the detrimental effects caused by delays.

Questions from the members again focused on whether the proposed bill would streamline the permitting process or whether it would have little, or even negative, impact. Representatives Waxman, McNerney, and Paul Tonko (D-NY), were concerned about the lack of distinction between small and complex projects, and consulted the panel for their opinion on the matter. Kessler and van Rossum both felt that a “one size fits all” piece of legislation would lead to increased risk to environmental and public health. The same committee members expressed concern that the legislation wouldn’t change much, and Kessler and van Rossum agreed. Representatives Pompeo and Whitfield asked the panel about the need for a streamlined permitting process for the future, to which Markarian, Paris, and Santa, responded in support, citing the increased need for pipeline infrastructure in the future, and the need to plan for “20-25 years down the road.”

Opening statements and witness testimony, as well as an archived video of the hearing, are available on the Committee on Natural Resources website. 
 

-JTK