Statement of Administration Policy: H.R. 7176 - Unlocking our Domestic LNG Potential Act of 2024

STATEMENT OF ADMINISTRATION POLICY

(House Rules)
(Rep. Pfluger, R-TX, and 19 cosponsors)

The Administration strongly opposes passage of H.R. 7176, legislation to change the procedures for approval of the import and export of natural gas under the Natural Gas Act. H.R. 7176 would eliminate the requirement for Department of Energy (DOE) authorization of export of liquefied natural gas (LNG) to countries with which the United States does not have a free trade agreement (non-FTA countries). This would undermine the ability of the United States to ensure that export of a critical and strategic resource is consistent with our economic, energy security, foreign policy, and environmental interests. Doing so would also strip back important safeguards that prevent price pressure on industrial and residential consumers, as well as vital consumer, domestic manufacturing, and energy security protections. It would also eliminate an important check that export to non-FTA countries will be consistent with U.S. law and policy.

Currently, the Natural Gas Act requires the DOE to determine whether it is in the public interest to allow LNG exports to non-FTA countries. These determinations involve a review of the economic impacts, including potential changes to domestic natural gas and electricity prices on consumers and manufacturers, and environmental impacts of the exports. They also consider potential effects on the security of U.S. natural gas supply. If enacted, H.R. 7176 would eliminate any consideration of these issues and whether particular exports of U.S. natural gas are consistent with the public interest.

The Administration believes that the critical protections current law provides, which this legislation would repeal, should be retained to protect residential and industrial consumers and national and domestic energy security.