U.S. Rep. Fred Upton (R-MI), chairman of the House Energy and Commerce Subcommittee on Energy, convened a Jan. 19 hearing to consider three bills aimed at updating U.S. energy law and better serving America’s energy ratepayers.
The hearing was timely in light of the bipartisan visit to Puerto Rico and the U.S. Virgin Islands that House Energy and Commerce Committee members made early last month, according to Rep. Upton.
“Puerto Rico’s grid was in very rough shape to begin with and many of their power plants were so outdated they were still burning petroleum,” Upton said. “I believe there is real potential for Puerto Rico to expand their use of natural gas, and these bills — especially the small-scale [liquefied natural gas] bill — can be part of the solution.”
Specifically, Upton was referring to the bills’ focus on liquefied natural gas (LNG) exports and modernization of the Public Utility Regulatory Policies Act of 1978 (PURPA). Two bills introduced in December 2017 by U.S. Rep. Bill Johnson (R-OH), Unlocking Our Domestic LNG Potential Act, H.R. 4605, and Ensuring Small Scale LNG Certainty and Access Act, H.R. 4606, would speed LNG-export application approval so that U.S. producers could better compete in the world marketplace.
Charlie Riedl, executive director of the Center for Liquefied Natural Gas, also voiced support for the bills during the hearing.
“Streamlining the approval process for LNG export applications from the United States can create tens of thousands of American jobs and reduce global greenhouse gas emissions, while preserving a competitive advantage for American manufacturers and benefiting the U.S. economy,” Riedl testified.
The third bill, the PURPA Modernization Act of 2017, H.R. 4476, introduced by U.S. Rep. Tim Walberg (R-MI) on Nov. 29, 2017, would require the Federal Energy Regulatory Commission to revamp its regulations for qualifying small power production facilities and qualifying cogeneration facilities under the 40-year old PURPA law. Reforming PURPA would help lower utility bills for consumers, Walberg’s office said.
Electricity industry officials welcomed Walberg’s bill. “This legislation is an important and significant leap forward in providing us with the ability to secure a reliable and affordable energy future for the nation,” said Travis Kavulla, vice chairman of the Montana Public Service Commission on behalf of the National Association of Regulatory Utility Commissioners.
Likewise, Timothy Sparks, vice president of electric grid integration at CMS Energy, said PURPA “has succeeded in its mission — to promote the growth of renewable energy — but desperately needs updating.” Sparks added that the Edison Electric Institute, the American Public Power Association, and many U.S. businesses support the bill’s passage.
The Trump administration also expressed support for the bills. U.S. Department of Energy Assistant Secretary for Fossil Energy Steven Winberg told the subcommittee that the Energy Department “appreciates the ongoing bipartisan efforts to address our nation’s energy challenges, and looks forward to working with the Committee on the legislation on today’s agenda and any future legislation.”