Bob Latta on Streamlining Natural Gas Permitting for Energy Security and Economic Growth

The Nation's Energy Crossroads

• 💡 The U.S. is at a critical juncture regarding its energy future, with significant implications for economic trajectory, national security, and global competitiveness.
• 📈 Over the next five years, electricity consumption is projected to increase by 128 gigawatts, with natural gas expected to meet the majority of this demand through new base load power.

Challenges in Natural Gas Infrastructure

• ⚠️ The buildout of interstate natural gas pipelines faces substantial hurdles, including delays caused by a lack of coordination, inaction, or obstruction from states and federal agencies.
• 🔗 Section 401 of the Clean Water Act has become a procedural bottleneck, with inconsistent state applications and lengthy reviews undermining federally approved projects.
• 📉 Pipeline blockades have already led to a 160% increase in average natural gas prices in major demand centers, according to a recent study.

The Impact of State Actions and Proposed Reforms

• 🚫 States like New York have utilized their authority under Section 401 to block interstate natural gas pipeline projects, often citing radical climate agendas rather than legitimate water quality concerns.
• 📊 Between 2013 and 2021, pipeline capacity growth was only 26% while natural gas demand rose by 49%, a trend that will worsen without statutory reforms.
• 🏛️ HR 3668 aims to strengthen the Federal Energy Regulatory Commission's (FERC) role and clarify the process for participating agencies.
• 📝 Under HR 3668, FERC would integrate water quality reviews into its existing National Environmental Policy Act (NEPA) review, incorporating state-proposed terms for compliance.

Addressing Misconceptions and Economic Benefits

• ⚖️ Opponents claim HR 3668 would gut the Clean Water Act, but the legislation does not amend the Act and maintains protections for water quality.
• 🔍 FERC already analyzes water quality impacts within the NEPA process and is equipped to address concerns.
• 💰 Expanding natural gas pipeline capacity is estimated to save Americans $76 billion by 2040, a benefit that will be lost without statutory reforms.
• 🌐 Failure to reform permitting processes could hinder the nation's ability to compete with China and leave the electric grid vulnerable.