Underground Infrastructure - May 2023 - 10

WASHINGTONWATCH
This could be one of the most impactful
congressional years for the pipeline industry
in decades. Besides the start of work
on the next pipeline safety bill, the House
passed a big energy bill (H.R. 1) by a vote
of 225-204, with four Democrats joining
Republicans in the affirmative.
The bill, as a whole, probably won't
pass in the Senate. But the House bill,
with numerous pipeline friendly provisions,
will serve as the basis for a more
stripped-down Senate bill. President
Biden might well support that, as his
2024 presidential campaign takes off
and along with it, the need to seem less
anti-fossil fuel than he has in the past.
H.R. 1 contains several natural gas provisions,
some more impactful than others.
In the latter case is elimination of the
soon-to-be required methane emission
tax on interstate pipelines, which was included
in the Inflation Adjustment Act. It
also includes elimination of one key state
prerogative that has been used to stop
Federal Energy Regulatory Commission
(FERC) approval of new pipelines.
Sen. Chuck Schumer (D-N.Y.),
majority leader in the slightly Democratic-controlled
Senate, called the
legislation a " partisan, dead-on-arrival
and unserious proposal for addressing
America's energy needs that they have
laughingly labeled H.R. 1. "
" It's a non-starter in the Senate, " he
added, and called the bill a " wish list for
big oil. " He did say, however, he strongly
supports ongoing bipartisan, bicameral
talks on a potential permitting reform deal.
Schumer's negative comments aside,
aspects of The Lower Energy Costs Act
(H.R. 1) are likely to attract considerable
Democratic support in the Senate. Not
least among them are the bill's infrastructure
permitting provisions, which these
days are not just seen as a giveaway to gas
10 MAY 2023 | UndergroundInfrastructure.com
Stephen Barlas | Washington, D.C. Editor
Congress Unusually Active
on Pipeline Issues
pipelines but now as a major priority for
wind and solar companies seeking to build
facilities more quickly and less cheaply.
Jason Grumet, CEO of American
Clean Power Association, came out
strong for provisions, because establishing
" a predictable and timely federal permitting
framework for projects is critical
to the future development of domestic
clean energy. "
The
pro-permitting
provisions
in
H.R.1 appear, in at least one instance, to
be stronger than those in Sen. Joe Manchin's
(D-W. Va.) permitting bill, which
failed in 2022.
The House bill says: " This section
replaces the use of Clean Water Act
(CWA) Section 401 for the purposes of
interstate pipelines and LNG export facilities
with ability for affected states to
participate in the FERC-led NEPA process
for an interstate natural gas pipeline
or LNG project. "
According to Amy Andryszak, INGAA
president & CEO, " INGAA's primary
goal is fixing the CWA 401 certification
process to eliminate duplicative
review, avoid inconsistent results across
agencies, and prevent the misuse of the
CWA 401 process that has occurred in
some states.
" We think section 10008, which
establishes a regulatory process for interstate
natural gas pipelines that eliminates
duplicative review while preserving
protections for water quality, goes a
long way in achieving that goal. "
Michael Pincus, a pipeline attorney
who works at the law firm Van Ness
Feldman, commented, " For companies
with projects in states that have been
denied water quality certification under
section 401, this provision would ensure
that similar projects could not be vetoed
by one state. "
Methane tax
While various Democrats in both houses
of Congress might support permitting
changes, fewer might be thrilled with
eliminating the methane tax in the Inflation
Adjustment Act. The charge starts at
$900 per metric ton of methane emitted,
increasing to $1,500 after two years. The
tax kicks in for the first time based on calendar
2024 emissions.
However, the inflation law contains a
provision that eliminates the tax if the Environmental
Protection Agency (EPA)
issues a final methane air emissions rule
(under the Clean Air Act) which goes
into effect in all states and results in
equivalent or greater emissions reduction
than would have occurred from a 2021
EPA proposed rule on the subject.
The pipeline industry opposed that
earlier proposed rule, so the elimination
of the methane tax via the EPA is
highly unlikely.
" INGAA membership has never felt
the methane fee is necessary, " said Andryszak.
" Further, the EPA is currently
in the process of finalizing methane regulations,
which we are concerned may
conflict or be inconsistent with what is
in the IRA. "
As opposed to H.R. 1, where Republicans
and Democrats will be at loggerheads
over some key provisions, a new
pipeline safety bill Congress has started
working on, will probably be more bipartisan.
That has been the case in the past,
as it was regarding the 2020 Pipeline
Safety Act, which included a provision
aimed at making inroads on probably
INGAA's top priority at the Pipeline and
Hazardous Materials Safety Administration
(PHMSA).
That has to do with the 50-year-old
class location system, which currently
forces companies to replace pipe, un
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