API: Administration’s NEPA Rewrite Undermines Global Energy Security

WASHINGTON, April 19, 2022 – The American Petroleum Institute (API) issued the following statement from Senior Vice President of Policy, Economics and Regulatory Affairs Frank Macchiarola in response to the White House Council on Environmental Quality’s (CEQ) revised National Environmental Policy Act (NEPA) Phase 1 regulations. The regulations will slow the permitting process for critical energy infrastructure dramatically and create new obstacles not only for natural gas and oil development but also the deployment of CCUS and hydrogen infrastructure and potentially even the construction of wind, solar and electricity transmission projects.

“With energy costs high for American consumers and European allies looking to the U.S. for access to an affordable and stable energy supply, we need policies in place that provide certainty and ensure American producers can meet rising demand at home and abroad. The administration’s NEPA rewrite adds more bureaucratic red tape into the permitting process, not only for natural gas and oil but for hydrogen, CCUS, wind and solar. Once again, the administration’s policy actions aren’t matching their rhetoric regarding the need for more American energy production, and we urge the administration to change course and establish a timely and efficient permitting process that supports the energy security needs of the U.S. and our allies overseas.”   

The U.S. and the EU recently established a joint task force to help increase U.S. LNG exports to Europe and reduce their dependency on Russian natural gas. An effective and efficient NEPA process is critical to expanding LNG export projects, which will likely require additional interstate pipeline capacity. Without a timely and efficient permitting system, infrastructure projects that are critical to U.S. energy security cannot be constructed under a timeframe that reflects the urgency for which they are needed. 

A well-functioning NEPA process is also critical for implementing the bipartisan infrastructure bill that was signed into law, including key provisions for CCUS deployment and hydrogen hubs.  

Click here to view a copy of API’s submitted comments on the NEPA regulations. 

API represents all segments of America’s natural gas and oil industry, which supports more than 11 million U.S. jobs and is backed by a growing grassroots movement of millions of Americans. Our nearly 600 members produce, process and distribute the majority of the nation’s energy, and participate in API Energy Excellence®, which is accelerating environmental and safety progress by fostering new technologies and transparent reporting. API was formed in 1919 as a standards-setting organization and has developed more than 700 standards to enhance operational and environmental safety, efficiency and sustainability.

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