House passes bill to expedite small-scale LNG exports

9/10/2018

WASHINGTON, DC – The House of Representatives passed H.R. 4606, the Ensuring Small Scale LNG Certainty and Access Act, by a vote of 260 to 146.

H.R. 4606, authored by Rep. Bill Johnson (R-OH) and Rep. Gene Green (D-TX), would allow the expedited approval of small-scale shipments of liquefied natural gas (LNG), which will open-up new markets in the Caribbean, Central America, and South America, and preserve existing environmental laws to ensure that small scale export facilities receive the proper review. The legislation also codifies in statute a rule recently finalized by the Department of Energy (DOE) to expedite approval for small-scale natural gas exports.

“Thanks to our enormous domestic natural gas resource base, the United States is uniquely positioned to compete on a global level for LNG markets,” said Energy and Commerce Committee Chairman Greg Walden (R-OR) and #SubEnergy Chairman Fred Upton (R-MI). “By streamlining DOE’s process for approving small-scale shipments of LNG, this will diversify our allies’ supply choices who look to us to meet their natural gas needs. This bipartisan legislation will also boost our economy by creating thousands of jobs as well as strengthen our hand diplomatically. By codifying the DOE’s final rule into law, this provides enduring regulatory certainty to protect jobs and investment in the U.S. We commend Rep. Johnson for his unflagging efforts to take advantage of this abundant resource and reduce the regulatory burden on American businesses.”

Background:

In May 2017, the Energy and Commerce Committee advanced H.R. 4606, the Ensuring Small Scale LNG Certainty and Access Act, to the House of Representatives.

In July 2018, the Department of Energy (DOE) announced a final rule to improve the approval process for exporting small volumes of LNG to countries with which the U.S. doesn’t have a free trade agreement. The final rule took effect on August 24, 2018.

H.R. 4606 garnered numerous letters of support from a variety of stakeholders, including the American Petroleum Institute, the Center for Liquefied Natural Gas, Citizens for Responsible Energy Solutions, the Laborers’ International Union of North America, and the National Association of Manufacturers.