US GOP lawmaker sees dim prospects for permitting reforms to influence FERC

A Republican US congressman Nov. 10 cast doubt on the prospects for passing legislation to ease natural gas permitting challenges or influencing the Federal Energy Regulatory Commission's approach, so long as Democrats retain control of the House of Representatives.

At the North American Gas Forum in Washington, hosted by Energy Dialogues, Representative Bill Johnson, Republican-Ohio, a frequent supporter of the oil and gas sector, was asked by LNG Allies President Fred Hutchison if Congress could do something positive to help FERC move forward to enable gas pipelines to be built.

"I wish I could tell you that I was optimistic," Johnson replied. "In today's climate, with [House Speaker] Nancy Pelosi and the Democrats holding the majority in the House until January of 2023 ..., it's going to be difficult to have any influence in the next year or so over FERC," he said.

FERC has been split along party lines over how to assess climate impacts of gas projects and how to determine whether projects are needed. Strengthening FERC Chairman Richard Glick's hand, the commission is poised to gain a Democratic majority shortly, with President Joe Biden's nominee Willie Phillips advancing out of committee and awaiting a vote on the Senate floor.

FERC's pace of action on pipelines has recently drawn attention from Republican senators concerned over whether the commission was delaying action when it launched additional environmental reviews to help answer climate questions.

Broader efforts to streamline permitting have been a recurring topic in Congress, as interstate gas pipelines and oil pipelines have faced a host of legal and regulatory challenges. Transmission lines and renewable energy infrastructure increasingly face regulatory hurdles as well, renewing talk among some industry stakeholders, including Hutchison, about seeking common ground across parties on permitting legislation.

Johnson, a member of the bipartisan Problem Solvers Caucus, was not optimistic on the overall climate for bipartisan action in Washington, however.

"We have entered a phase that transcends politics. We're in ideology," he said, singling out an "assault on fossil fuels, and oil and gas."

"They are zealots about that effort. They have a single goal in mind and that is to leave fossil fuels in the ground, and that's going to destroy your industry," he told the gas conference.

Biden climate agenda

Along similar lines, Johnson said he was "extremely disappointed" by House action last week to pass bipartisan infrastructure legislation, arguing that it "paves the way" for a House vote on the budget reconciliation package, which contains more extensive climate provisions backed by Biden. He criticized supports in the legislation for electric vehicles, mass transportation and electrification of buses.

Gas industry officials have strongly opposed a methane fee contained in the reconciliation bill.

But Johnson said he was unsure that fee would be stripped out, suggesting it may well survive a parliamentary challenge.

"Unless [Senator] Joe Manchin and [Senator Krysten] Sinema stand up against it, I think it stands a good chance of passing," he said.

Johnson, in addition, questioned whether a member of his own party should face consequences for voting for the infrastructure bill and thereby helping Democrats advance their agenda.

"I understand the Republican base across the country demanding consequences for those votes," he said, suggesting his colleagues would be looking to see the leadership's response.

"Should you be able to be a ranking member of a committee or a subcommittee if you can't deliver the tough votes to keep the ideological needle moving in the right direction?" he asked.

The $1.2 trillion infrastructure bill contains funding to modernize the electric grid, develop electric vehicles and charging stations, and support mass transit; but at the same time, it backs technologies favored by the oil and gas sector, including carbon capture, hydrogen and direct air capture.

The House may act on the reconciliation legislation the week of Nov. 15, with the potential for Senate action by Thanksgiving.

Setting aside the reconciliation fight, Johnson was more optimistic about prospects for bipartisan legislation that would make it easier to grant LNG export authorizations for non-free trade agreement countries.

"I think it is time that we take another look at that; hopefully we can get the same bipartisan group" that previously backed the legislation, Johnson said. He agreed with Hutchison that it would be helpful to attach a bill to other must-pass legislation to avoid having to find 60 votes to support it.