U.S. Senate Committee on Energy and Natural Resources Business Meeting

The Senate Energy and Natural Resources (ENR) Committee held a business meeting on 20 agenda items. The meeting’s main purpose was to consider amendments to Chair Lisa Murkowski (R-AK) and Ranking Member Sen. Maria Cantwell’s (D-WA) broad, bipartisan bill to advance U.S. energy policy, the Energy Policy Modernization Act of 2015.

Over the course of the three-day business meeting, three packages of amendments were approved by voice vote.

Highlights of amendments cleared in the package include the following from July 28, July 29 and July 30 (links include full lists to approved amendments):

A provision relating to energy conservation standards for commercial refrigeration equipment.
A provision to require the evaluation of potentially duplicative green building programs within the U.S. Department of Energy, proposed by Jeff Flake (R-AZ).
An amendment to modify sections relating to the 21st Century Energy Workforce Advisory Board and Energy Workforce Pilot Grant Program, proposed by Martin Heinrich (D-NM).
An amendment to support research into critical mineral alternatives, proposed by Elizabeth Warren (D-MA).
An amendment directing the Secretary of the Interior, with respect to public lands, to provide continuity of the existing use and occupancy for the transmission of electric energy by any federal department or agency granted across public lands or national forest system land, proposed by Lamar Alexander (R-TN).
An amendment to extend the authorization for the Department of Indian Energy education planning and management assistance program to 2021, proposed by Al Franken (D-MN).
Murkowski commented that she was pleased to have an amendment extending the Indian Energy program.
Franken added Indian Country contains tremendous opportunities for renewable energy. The Energy Department provides Indian communities and tribes with technical assistance and grants for community and commercial-scale projects. Almost every week, he said, he hears heartbreaking testimony about the challenges related to economic development. The authorization of this amendment will help tribes create new jobs while promoting energy development.
An amendment to modify the definition of a federal building, proposed by Cory Gardner (R-CO).
Joint staff amendments:
To modify the subtitle relating to Code maintenance.
To include oilseed crops in a grant program.
To require the NEWS Committee to issue a report on the potential benefits and feasibility of establishing an energy-water center of excellence within the Energy Department’s National Laboratories.
An amendment to revise a provision relating to net energy metering studies, proposed by Angus King (I-ME).
Addresses the impacts of state-by-state net metering and ensuring the energy generated from net metering is available for all consumers across the states.
It removes barriers for reliable operation in the event of an emergency by setting in place measures for municipal utilities to serve their customers during emergencies.
An amendment to require the Secretary of Energy to conduct a study and issue a report that quantifies the energy savings benefits of operational efficiency programs and services for commercial, institutional, industrial, and governmental entities, proposed by Warren.
- This would help develop methodologies to quantify energy savings associated with advanced building operations.
An amendment to modify the sections relating to distribution system technology demonstrations and performance metrics for electricity infrastructure providers, proposed by Wyden (D-OR).
This would accelerate the transformation to a more modern and resilient grid, and adds additional provisions, including transitive energy concepts.
An amendment to provide the timely consideration of all licenses, permits, and approvals required under federal law with respect to gas transportation, proposed by Capito.
An amendment to modify a provision to include Indian tribes, proposed by Franken.
An amendment to direct the Secretary of Energy to establish micro-labs to improve regional engagement with national laboratories, proposed by Heinrich and Sen. Gardner.
An amendment to make the definition of “State” conform to the standard energy statutory definition, proposed by Mazie Hirono (D-HI).

Other amendments were discussed during the three days. The end results, along with the discussion and debating points, are listed below.

Approved:

#3 – Alexander’s amendment to provide a program of research, development, demonstration, and commercial application in vehicle technologies at DOE, approved 20-2.
#24 – Flake’s amendment to provide critical electric infrastructure security, approved by voice vote.
Flake said the amendment is critical to electric infrastructure security and power systems.
Cantwell said that we need to be doing what we can to promote critical energy infrastructure, but this amendment creates a new definition instead of building on ones previously approved. She offered a second-degree amendment to allow state and local laws to weigh in on unintended consequences.
Flake responded that a second-degree amendment would upset his amendment’s carefully crafted language.
#41 – John Hoeven’s (R-ND) amendment to require the Secretary of the Interior to establish a pilot program for streamlining the review and approval of drilling permit applications, approved by voice vote.
#68 – Joe Manchin’s (D-WV) amendment to amend the Energy Policy Act of 2005 to repeal certain programs and establish a coal technology program, approved by voice vote.
This amendment would redirect how money is used, making funds more effective with transformational technologies.
#90 – Warren’s amendment to require a study on liquefied natural gas exports, approved 13-9.

Highlights of key amendments that failed in committee include the following:

#5 – John Barrasso’s (R-WY) amendment to modify the allocation of funds in the Land and Water Conservation Fund (LWCF), failed 7-15.
This amendment would have increased the state allocation of funds in the LWCF from 40 percent to 50 percent.
Barrasso argued that 40 percent falls short of the 60 percent requirement found in the 1965 LWCF, and from 1965 through FY2015, the largest portion of LWCF has been used for federal land acquisitions, which is a problem for western states.
Manchin voiced opposition, on the grounds that Eastern states wouldn’t reap benefits from changing this, and stated that there is currently a bipartisan agreement on 40 percent. Changing that may disrupt the reauthorization of the LWCF.
Using Alaska as an example, Murkowski highlighted what the state share would be used for, saying that state parks are much more widely visited than federal parks. It also has implications for native lands that are threatened with conversion.
#27 – Franken’s amendment to provide for competitive awards to utilities for the purpose of implementing effective and promising benchmarking and disclosure programs for multi-tenant buildings, failed 9-13.
#29 – Franken and Sen. Heinrich’s amendment to establish a federal efficiency resource standard for electricity and natural gas suppliers, failed 19-3.
The amendment would have mandated energy retrofits requiring more efficiency for utility customers each year, with an annual goal of 1.85 percent less usage.
Franken said the less well-known revolution is the distributed energy produced at homes or factories by individuals, including demand response technology.
Franken said his amendment would allow consumers to have a greater ability to interconnect at reasonable prices without disrupting the grid, thereby saving substantial energy and transmission costs. Ultimately, this could save billions of dollars and improve grid resiliency from a national security point of view.
It would unleash retrofitting incentives for private businesses to capitalize on smart ways to achieve energy efficiency.
Murkowski said one size does not fit all in the energy sector. She expressed concern that a new federal mandate would upend some of the good work happening in the states. National level energy efficiency standards have been considered before, but deal structuring depends on the end user and the retail or natural gas providers that are subject to the penalties when consumers fail to meet set standards.
#50 – King’s amendment to approve certain proposals relating to the export activities of liquefied natural gas terminals, failed 10-12.
King said the consequences of additional gas exports are not understood. His amendment would simply require an economic study so the consequences are known before the exports occur.
Barrasso said the amendment isn’t needed. The DOE has already conducted a number of LNG export studies and each one of the studies has shown that natural gas prices will remain low. He said the problem doesn’t have anything to do with natural gas production, but on the ability of pipelines to transmit natural gas to specific end point locations. He opposed the amendment.
Franken stated that if the country has unlimited LNG exports, U.S. gas costs will increase, and the U.S. will be subsidizing manufacturing in China. He supported the amendment to make exports be more balanced.
#79 – Bernie Sanders’ (I-VT) amendment to require the Secretary of Energy to provide loans and grants for solar installations in low-income and underserved areas, failed 9-13.
The Low Income Solar Act of 2015 (LISA) would have established a loan and grant program through DOE to grant money for part of the upfront cost of residential solar arrays for low-income families.
Sanders said many low-income families cannot take advantage of solar energy because it is too expensive. The grant money would help with the upfront costs of residential solar projects for families owning their own homes, or for organizations that provide access to community solar facilities.
Cantwell said federal policies have spurred solar growth. She supported the amendment, as it ensures solar deployment is cost effective over other economic sectors.
Murkowski was concerned about the precedent this would set if a resource specific loan program is included.
#80 – Sanders’ amendment to express the sense of the Congress regarding climate change, failed 9-13.
- Sanders said the U.S. energy system must be transformed to prevent global harm. Not acknowledging what the scientists tell us, that climate change is real and causing a planetary crisis, is going against the direction needed to change this.
- Murkowski said she does not believe the Congress has the sense that climate change is real. She reminded everyone that the bill is made up of “no-regrets” policies as they relate to energy access and moving forward with greater energy efficiencies. Using and encouraging technology to help deliver cleaner and more affordable energy resources is important to many states, including Alaska, where so many communities rely on diesel.
- Murkowski repeated the broad energy bill has titles designed to move the U.S. towards cleaner, more efficient energy that is environmentally responsible and ensures affordability and access for all Americans.
#82 – Stabenow’s amendment to ensure public safety and transparency on natural gas domestic exports, failed 9-13.

Withdrawn:

Cassidy withdrew an amendment proposed with Sen. Stabenow that would modify the definition of a vehicle introduced by DOE’s Advanced Technology Vehicles Manufacturing Program (ATVMP).
- The program has issued only one loan in the past four years. The amendment would have reformed the program in order to meet modern energy efficiency needs. They have worked to open the program to U.S. flagged vessels and commercial trucks.
- Cassidy said EPA and DOI continue to demand higher and more stringent standards, and argued, “Why not allow for DOE’s $16 billion to be invested in new fuel vehicles and provide vessel and truck owners with significant energy savings?”
- Murkowski said she appreciated the inclusion of vessels. She also noted that the proposals as drafted would result in a direct spending score for the underlying bill.
#73 – Jim Risch (R-ID) and Sen. Heinrich’s amendment regarding renewable energy projects on public land.
- Risch said not many laws regulate the development of renewable energy on public land. It was suggested that this be done through the legislative process, but more work needs to be accomplished before it is put into the bill.
- Heinrich said this is a critical policy to avoid conflicts that have slowed projects in the past. The permitting process for individual projects needs to be simpler.
- Heinrich added that a portion of the revenue would go towards habitat restoration and also to state and local counties, giving them a stake in resource development.
#95 – Ron Wyden (D-OR) withdrew a six-year reauthorization of the Secure Rural Schools Program. He said the program is a lifeline for rural areas where the federal government owns the majority of the land and provides a safety net for sustainable communities to ensure they have enough money for schools, roads, and other critical infrastructure.
Wyden said he also supported the Land and Water Conservation Act, which impacts all 50 states, and DOI’s Payments in Lieu of Taxes (PILT) to local governments to offset property tax losses from non-taxable federal lands within their boundaries. Sen. Wyden said with the cooperation of the Chairman and Ranking Member, he would continue to work on the Secure Schools Program and PILT for the benefit of all rural communities.
Murkowski said the harvests are not holding back the communities from sustaining themselves, but instead it’s the policies in Washington, DC, and that a certain level of predictability must be delivered to the timber communities.
Cantwell reiterated the community importance aspect as one Washington State county that she represents consists of 97 percent federal land. Sen. Murkowski added that in the Ketchikan Gateway Borough, less than 4 percent of the land is taxable.

Following votes on the Energy Policy Modernization Act of 2015, the Committee voted on several short list items. Items of particular interest are outlined below, all other items can be found here.

Offshore Production and Energizing National Security (OPENS) Act of 2015 would reform of the administration of the Outer Continental Shelf of the U.S. and allow federal revenue sharing with coastal states impacted by OCS development.
- Expands all access in areas currently closed off to energy development in the OCE
- Reverses the ban on U.S. crude oil exports.
The nomination of Jonathan Elkind to be Assistant Secretary of Energy, International Affairs was approved 17-5 on July 28.
146 – Public Access to Public Land Guarantee Act. The bill would reauthorize the Secretary of the Interior or the Secretary of Agriculture to enter into agreements with states and state political subdivisions in order to continue operations in whole or in part on public land, National Park Service units or Wildlife Refuge Systems when either secretary is unable to maintain the normal level of operations.
593 – Bureau of Reclamation Transparency Act, would require the Secretary of the Interior to submit to the Congress a report on the efforts of the Bureau of Reclamation to manage its infrastructure assets.
720 – Energy Savings and Industrial Competitiveness Act of 2015, would promote energy savings in residential buildings and industry.
- An amendment proposed by Rob Portman (R-OH) to include this bill in the underlying Energy Policy Modernization Act of 2015 failed.
- 720 would improve the accuracy of mortgage underwriting used by federal mortgage agencies by including a home’s expected energy cost savings when determining the value and affordability of energy-efficient homes.
- The bill was intended to generate enormous savings with no added costs, reduce the risk of default mortgages by providing homeowners with a more accurate perspective on costs, and encourage energy efficiency upgrades.
873 – Jay S. Hammond Wilderness Act, would designate the wilderness within the Lake Clark National Park and Preserve in the State of Alaska as the Jay S. Hammond Wilderness Area, in honor of the former Alaska governor.