Rep. Laurel Lee Introduces the Unleash American Pipelines Act to Reform Natural Gas Pipeline Judicial Review
WASHINGTON, D.C. — Today, Congresswoman Laurel Lee, a member of the House Energy and Commerce Committee, introduced the Unleash American Pipelines Act, legislation to reform the judicial review process for natural gas pipeline certificates of public convenience and necessity issued by the Federal Energy Regulatory Commission (FERC).
The legislation would provide greater certainty for federally approved pipeline projects by limiting legal challenges to parties that can dictate direct and irreparable economic harm, establishing a clear and convincing evidence standard for overturning FERC’s expert determinations, and consolidating challenges in the U.S. Court of Appeals for the District of Columbia Circuit.
“Florida families and businesses depend on affordable, reliable energy, and natural gas powers nearly three-quarters of our state’s electricity,” said Rep. Lee. “When a pipeline has undergone extensive federal review and received approval from FERC, outside groups should not be able to use endless litigation to delay critical energy infrastructure indefinitely. The Unleash American Pipelines Act will bring greater certainty to the permitting process while preserving judicial review for those directly affected. This is a commonsense step to strengthen American energy infrastructure, lower costs, and ensure Florida has the reliable energy supply we need to continue growing.”
"Florida relies on interstate pipelines for nearly all of the natural gas that powers homes and businesses across the state,” said CEO of Florida Power & Light Company, Scott Bores. “Reliable pipeline infrastructure is essential to providing affordable, reliable electric service for our customers and supporting Florida's continued growth. We appreciate Congresswoman Lee's leadership on this important issue."
“TECO Energy applauds Congresswoman Lee for focusing on the right things: making government more efficient and effective to protect consumers and save customers' money. In Florida, natural gas is the backbone of the electric generation system, and smart policy that unleashes these investments promotes reliability and economic benefits,” said TECO. “We look forward to working with her on this legislation to improve the bureaucratic process to get much needed infrastructure built that supports growth in Florida.”
“Ensuring customer affordability and reliability has been and remains at the heart of everything Duke Energy does - from our operations to investments to our public policy engagement” said Louis Renjel, Chief Executive Officer of Duke Energy Florida and Midwest. “To that end, this legislation will help increase access to lower-cost gas supplies, strengthen energy reliability for Floridians and keep customer costs as low as possible.”
Florida’s dependence on natural gas makes reliable pipeline infrastructure especially important. The state produces less than one percent of the natural gas it consumes, meaning nearly all of the fuel used to power Florida homes and businesses must reach the state through interstate pipelines. When approved projects are tied up in years of litigation, the resulting uncertainty can increase financing and construction costs, discourage investment, and make it more difficult to build the infrastructure needed to meet growing energy demand.
Background: Natural gas accounts for nearly 73 percent of Florida’s electricity generation. Yet Florida produces less than one percent of the natural gas it uses, leaving the state heavily dependent on interstate pipelines to deliver its supply.
Before an interstate natural gas pipeline can be built, developers must receive a certificate of public convenience and necessity from FERC. That approval comes after an extensive federal review process.
Under current law, however, receiving a FERC certificate does not necessarily provide certainty that an approved project will be completed. Third-party organizations that are not landowners or otherwise directly economically affected by a project can challenge a certificate in federal court, potentially adding years of litigation after the federal review process has already concluded.
Those delays have consequences beyond individual pipeline projects. Pipeline construction is capital intensive, and years of potential litigation create additional financial risk for developers and investors. That uncertainty can result in more expensive financing, higher required returns, and projects that become too costly to build. For projects that do move forward, additional costs incurred during years of litigation can ultimately affect the utilities that rely on pipeline capacity and the families and businesses paying their energy bills.
The Mountain Valley Pipeline illustrates the consequences of prolonged litigation. The 303-mile pipeline was approved by FERC and originally scheduled for completion in 2018 at an estimated cost of $3.5 billion. After years of litigation and delays, the project’s cost grew to approximately $7.85 billion—more than double its original estimate. Congress ultimately had to intervene to allow construction to be completed.
The Unleash American Pipelines Act enacts three targeted reforms.
This legislation is supported by Duke Energy, TECO, and Florida Power and Light. |