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APGA Encourages Additional Permitting Reform Including Section 5 Reform

By Joshua St.Pierre posted 06-08-2023 12:17 PM

  
Last week Congress passed the Fiscal Responsibility Act (FRA) avoiding what would have been a catastrophic default on the country’s debt. The legislation also included a number of provisions addressing reforms to various aspects of the energy permitting process. While APGA is glad to see progress on the permitting reform front, we are anxious to build on the momentum that the FRA has provided. This includes our continued efforts to incorporate reforms to Section 5 of the Natural Gas Act (NGA) in whatever legislation comes of these renewed discussions. These reforms are vital to APGA’s members and their efforts to deliver reliable and affordable natural gas. 

It is clear that members of Congress on both sides of the aisle have additional energy permitting reform legislation in their sights, but it is unclear where the alignment exists between Republicans and Democrats. Senator Kevin Kramer (R-ND) spoke recently of his desire to continue the momentum, stating, “Ok, now lets get serious and drill down a bit [on reform efforts].” Though, members pushing the reform conversation worry that if they cannot find common ground on the issues, then their colleagues will simply be content with the provisions already included in the FRA. 

APGA is hopeful that the appetite for Section 5 reform is similarly growing. APGA supported Senate Energy and Natural Resources Committee staff at an oversight hearing with the commissioners of the Federal Energy Regulatory Commission (FERC). Committee members submitted questions to the commissioners about FERC’s refund authority for natural gas distribution entities. When asked whether Congress should amend Section 5 of the Natural Gas Act, Commissioner Phillips responded, “I defer to Congress on whether it should amend the NGA to give the Commission additional authority. I note, however, that if the Commission had that authority, the Commission could better ensure that rates subject to the Commission’s jurisdiction are just and reasonable.” 

APGA staff and member utilities have been hard at working engaging the policymakers closest to the permitting reform discussion on the importance of Section 5 reforms. In APGA’s most recent statement on the passage of the FRA, we issued a renewed call to take up these reforms in the next phase of discussion. APGA staff continues to work in collaboration with a coalition of other natural gas industry groups to strategize around the inclusion of Section 5 reforms in the current debate. As well, several of APGA’s member utilities have worked with APGA staff to reach out to their representatives in the House and Senate, encouraging further conversation on this issue and jumpstarting a dialogue about public utilities’ role in the permitting reform discussion. 

APGA appreciates the members that have already reached out to their representatives, and encourages anyone who is interested to get in touch with APGA staff if they are interested in supporting Section 5 reforms. 

Learn about APGA’s permitting reform priorities here.

For questions on this article please contact Josh St. Pierre of APGA staff by phone at 202-470-4262 or by email at jstpierre@apga.org.

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