Republican Study Committee

HEAT Leaders applaud passage of legislation reversing Biden’s ban on LNG exports

Washington, DC, February 15, 2024

Thursday, RSC Chairman Kevin Hern (R-OK) and RSC House Energy Action Team (HEAT) Chairman Rep. August Pfluger (R-TX) released the following statement after the House Passage of H.R. 7176, the Unlocking Our Domestic LNG Potential Act of 2024, introduced by Rep. August Pfluger (TX-11).

"President Biden's politically-motivated ban on American LNG exports is a monumental mistake that benefits our adversaries and dirty global polluters like Iran and Russia. Unleashing U.S. LNG exports means more American jobs, a more secure world for America and our allies, and lower emissions. The Senate should immediately take up this legislation to improve global security, create American jobs, and help our allies."

Background

  • On January 26th, President Biden announced an indefinite ban on the issuance of export permits to non-FTA countries while it conducts a review to consider the climate impacts of natural gas. In the announcement, the White House fact sheet justified the action based on the desire to “act with urgency” to address the “existential threat” of climate change.
  • Current law requires that natural gas exports to countries with which the U.S. has an FTA be approved without delay. For non-FTA countries, the Energy Secretary is required to approve export requests unless they find exports “will not be consistent with the public interest.” There is a clear statutory presumption that U.S. LNG exports are in the public interest.
  • The Department of Energy (DOE) has already commissioned five studies to examine the effects of U.S. LNG exports. The results unanimously demonstrate the benefits to the U.S. economy and domestic natural gas prices. DOE has also issued two studies that examined the life cycle greenhouse gas impacts of U.S. LNG exports showing strong environmental benefits. In fact, the two prior presidential administrations conducted these studies without blocking export permits.

H.R. 7176, Unlocking Our Domestic LNG Potential Act of 2024:

  • Amends the Natural Gas Act (15 U.S.C. 717b) to repeal all restrictions on the import and export of natural gas.
  • Provides that FERC shall have the exclusive authority to approve or deny any application for authorization for the siting, construction, expansion, or operation of a facility to export natural gas from the U.S. to a foreign country or import natural gas from a foreign country, including an LNG terminal.
  • Makes clear that nothing in this section limits the authority of the President under the Constitution, the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), the National Emergencies Act (50 U.S.C. 1601 et seq.), part B of title II of the Energy Policy and Conservation Act (42 U.S.C. 6271 et seq.), the Trading With the Enemy Act (50 U.S.C. 4301 et seq.), or any other provision of law that imposes sanctions on a foreign person or foreign government, including a country that is designated as a state sponsor of terrorism, to prohibit imports or exports.