Resolution in Support of Expanded Liquefied Natural Gas (LNG) Exports Exposed

Model Bill Info
Bill Title	Resolution In Support of Expanded Liquefied Natural Gas Exports
Date Finalized	July 31, 2014
Date Amended	October 11, 2014
Date Accessed	May 14, 2018
Type	Model Policy
Status	Final
Task Forces	Federalism and International Relations
Keywords	Energy, Liquified Natural Gas, LNG, Exports, Regulations

Resolution In Support of Expanded Liquefied Natural Gas Exports

Resolution In Support of Expanded Liquefied Natural Gas Exports

Summary

The United States is currently experiencing a potentially transformative energy boom, including in natural gas. Unfortunately, our cumbersome and outdated natural gas export regulatory system prevents us from capitalizing on this energy revolution by exporting natural gas in its liquefied form (LNG) freely to non-FTA partners to promote economic growth. Our current export control regime also keeps us from using this resource strategically to support our partners around the world. Recent events in Ukraine bring the strategic aspects of this situation into sharp relief. This draft resolution serves as a specific addendum to Resolution for Reform of Counterproductive Export Control Policies, model policy considered in the International Relations Task Force and approved by the ALEC Board in 2013. This earlier model policy was crafted to address all manner of misguided export control policies, including but not limited to those governing energy.

WHEREAS, plentiful natural gas supplies and unprecedented advances in technology have provided a historic opportunity for the U.S. to achieve energy self-sufficiency while creating jobs and wealth for our economy; and

WHEREAS, pioneering exploration and extraction methods have opened such vast natural gas resources to development that demand on U.S. natural gas markets can grow with little impact to domestic prices; and

WHEREAS, the Department of Energy estimates natural gas production levels by 2035 will be 55 percent more than the Department estimated only four years ago, a growth trend that can support all domestic demand while allowing the U.S. to capitalize on the economic benefit of exporting abundant natural gas to other nations; and

WHEREAS, expanding exports of liquefied natural gas (LNG) is a key component to helping the United States realize its potential as a global energy leader while creating hundreds of thousands of jobs and strengthening the U.S. economy; and

WHEREAS, global demand for LNG is expected to grow significantly over the next two decades; and

WHEREAS, LNG exports will create tens of thousands of construction and operations jobs and will support fifty thousand jobs in the exploration and production sectors for every two billion cubic feet per day of exports; and

WHEREAS, according to recent studies, expanding markets for LNG is expected to generate as much as $86 billion in net benefits to the U.S. economy, could create more than 450,000 American jobs and help reduce the U.S. trade deficit by as much as $60 billion by 2038.

WHEREAS, expanded LNG exports would promote stability in natural gas pricing and spur increased investments by the natural gas industry, providing more jobs and revenue for roads and schools in natural gas producing regions; and

WHEREAS, creating additional markets for U.S. natural gas is also consistent with national trade and security policy because failure to do so would force our allies to continue to rely on regimes hostile to U.S. interests for their energy needs; and

WHEREAS, construction and operation of LNG export facilities would incentivize new direct infrastructure investments worth billions of dollars and generate royalties and local tax revenues directly into communities across the country; and

WHEREAS, nearly 30 LNG production facilities have applied to the U.S. Department of Energy (DOE) for licenses to export, yet only one project has received final permitting approval;

WHEREAS, a diverse coalition of LNG producers, energy and petroleum companies, business groups, service companies, elected officials and others have expressed their support for LNG exports.

THEREFORE, BE IT RESOLVED, that the American Legislative Exchange Council (ALEC) endorses expanded markets for LNG exports from the United States and encourages regulatory and legislative policies designed to streamline and simplify the permitting process; and

BE IT FURTHER RESOLVED, that a suitable copy of this Resolution be transmitted to Members of the United States Congress as an expression of ALEC’s support for expanded LNG exports and the streamlining of permit approval for pending export facilities so that the economic benefits of LNG exports can be magnified throughout the United States.

Approved by the ALEC Board of Directors on October 11, 2014.