Senator John Hoeven, a member of the U.S. Senate Energy Committee, this week introduced S.2638, the LNG Certainty Act, compromise legislation to expedite permitting of liquefied natural gas (LNG) facilities.
The bill requires the Department of Energy (DOE) to make a National Interest Determination within 45 days of a company filing an application with the Federal Energy Regulatory Commission (FERC).
Currently, companies apply to both FERC and DOE to receive an LNG permit. The FERC application normally takes between six months to a year to file. Hoeven’s legislation would require the DOE to make a decision within 45 days of the completion of that FERC application. Today, many permits have been pending at the DOE for more than two years.
Hoeven said the legislation is a simple compromise between LNG export proposals offered by Republicans and Democrats because it keeps DOE in the process, but provides certainty by placing a reasonable timeline for DOE to make a decision. The senator is calling for a hearing on the proposal in the Energy Committee as soon as possible.
“This is simple, straightforward legislation that provides a set timeline for the Energy Department to make decisions on LNG export permits,” said Hoeven.
The legislation is a simplified piece of the more comprehensive bill offered earlier this month by Hoeven and Senators John McCain, Lisa Murkowski and John Barrasso. That legislation, the North Atlantic Energy Security Act, would cut the red tape holding up energy production and infrastructure development, reduce flaring and expedite LNG exports to America’s allies. Passing the act would enable the U.S. to work with its allies, including Ukraine and Europe, to weaken the influence of Russia due to energy.
Press Release, July 25, 2014