AMERICAN JOBS NOW: A LEGISLATIVE HEARING ON H.R. 3548, THE NORTH AMERICAN ENERGY ACCESS ACT

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by  Committee on Energy and Commerce

AMERICAN JOBS NOW: A LEGISLATIVE HEARING
ON H.R. 3548, THE NORTH AMERICAN ENERGY
ACCESS ACT
HEARING
BEFORETHE
SUBCOMMITTEE ON ENERGY AND POWER
OFTHE
COMMITTEE ON ENERGY AND
COMMERCE
HOUSE OF REPRESENTATIVES
ONE HUNDRED TWELFTH CONGRESS
SECOND SESSION
JANUARY 25, FEBRUARY 3, 2012
Serial No. 112–108
(
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COMMITTEE ON ENERGY AND COMMERCE
FRED UPTON, Michigan
Chairman
JOE BARTON, Texas HENRY A. WAXMAN, California
Chairman Emeritus Ranking Member
CLIFF STEARNS, Florida JOHN D. DINGELL, Michigan
ED WHITFIELD, Kentucky Chairman Emeritus
JOHN SHIMKUS, Illinois EDWARD J. MARKEY, Massachusetts
JOSEPH R. PITTS, Pennsylvania EDOLPHUS TOWNS, New York
MARY BONO MACK, California FRANK PALLONE, JR., New Jersey
GREG WALDEN, Oregon BOBBY L. RUSH, Illinois
LEE TERRY, Nebraska ANNA G. ESHOO, California
MIKE ROGERS, Michigan ELIOT L. ENGEL, New York
SUE WILKINS MYRICK, North Carolina GENE GREEN, Texas
Vice Chairman DIANA DEGETTE, Colorado
JOHN SULLIVAN, Oklahoma LOIS CAPPS, California
TIM MURPHY, Pennsylvania MICHAEL F. DOYLE, Pennsylvania
MICHAEL C. BURGESS, Texas JANICE D. SCHAKOWSKY, Illinois
MARSHA BLACKBURN, Tennessee CHARLES A. GONZALEZ, Texas
BRIAN P. BILBRAY, California JAY INSLEE, Washington
CHARLES F. BASS, New Hampshire TAMMY BALDWIN, Wisconsin
PHIL GINGREY, Georgia MIKE ROSS, Arkansas
STEVE SCALISE, Louisiana JIM MATHESON, Utah
ROBERT E. LATTA, Ohio G.K. BUTTERFIELD, North Carolina
CATHY MCMORRIS RODGERS, Washington JOHN BARROW, Georgia
GREGG HARPER, Mississippi DORIS O. MATSUI, California
LEONARD LANCE, New Jersey DONNA M. CHRISTENSEN, Virgin Islands
BILL CASSIDY, Louisiana KATHY CASTOR, Florida
BRETT GUTHRIE, Kentucky
PETE OLSON, Texas
DAVID B. MCKINLEY, West Virginia
CORY GARDNER, Colorado
MIKE POMPEO, Kansas
ADAM KINZINGER, Illinois
H. MORGAN GRIFFITH, Virginia
SUBCOMMITTEE ON ENERGY AND POWER
ED WHITFIELD, Kentucky
Chairman
JOHN SULLIVAN, Oklahoma BOBBY L. RUSH, Illinois
Vice Chairman Ranking Member
JOHN SHIMKUS, Illinois JAY INSLEE, Washington
GREG WALDEN, Oregon JIM MATHESON, Utah
LEE TERRY, Nebraska KATHY CASTOR, Florida
MICHAEL C. BURGESS, Texas JOHN D. DINGELL, Michigan
BRIAN P. BILBRAY, California EDWARD J. MARKEY, Massachusetts
STEVE SCALISE, Louisiana ELIOT L. ENGEL, New York
CATHY MCMORRIS RODGERS, Washington GENE GREEN, Texas
PETE OLSON, Texas LOIS CAPPS, California
DAVID B. MCKINLEY, West Virginia MICHAEL F. DOYLE, Pennsylvania
CORY GARDNER, Colorado CHARLES A. GONZALEZ, Texas
MIKE POMPEO, Kansas HENRY A. WAXMAN, California (ex officio)
H. MORGAN GRIFFITH, Virginia
JOE BARTON, Texas
FRED UPTON, Michigan (ex officio)
(II)
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C O N T E N T S
JANUARY 25, 2012
Page
Hon. Ed Whitfield, a Representative in Congress from the Commonwealth
of Kentucky, opening statement ......................................................................... 1
Prepared statement .......................................................................................... 3
Hon. Lee Terry, a Representative in Congress from the State of Nebraska,
opening statement ................................................................................................ 10
Hon. Bobby L. Rush, a Representative in Congress from the State of Illinois,
opening statement ................................................................................................ 10
Hon. Fred Upton, a Representative in Congress from the State of Michigan,
opening statement ................................................................................................ 12
Prepared statement .......................................................................................... 14
Hon. Henry A. Waxman, a Representative in Congress from the State of
California, opening statement ............................................................................. 15
WITNESSES
Kerri-Ann Jones, Assistant Secretary of State, Bureau of Oceans and Inter-
national Environmental and Scientific Affairs .................................................. 17
Prepared statement .......................................................................................... 19
Answers to submitted questions ...................................................................... 67
Jeff C. Wright, Director, Office of Energy Projects, Federal Energy Regulatory
Commission ........................................................................................................... 25
Prepared statement .......................................................................................... 27
SUBMITTED MATERIAL
H.R. 3548, A Bill to facilitate United States access to North American oil
resources, and for other purposes ....................................................................... 5
Application for Intervenor Status, dated May 19, 2009, Hearing Order No.
OH–1–2009, of the National Energy Board, Canada, submitted by Mr.
Waxman ................................................................................................................ 40
Media notes on Keystone XL Pipeline, dated March 15, 2011, and April
15, 2011, Department of State, submitted by Mr. Terry .................................. 55
FEBRUARY 3, 2012
Page
Hon. Ed Whitfield, a Representative in Congress from the Commonwealth
of Kentucky, opening statement ......................................................................... 93
Prepared statement .......................................................................................... 95
Hon. Greg Walden, a Representative in Congress from the State of Oregon,
opening statement ................................................................................................ 96
Hon. Bobby L. Rush, a Representative in Congress from the State of Illinois,
opening statement ................................................................................................ 96
Hon. Joe Barton, a Representative in Congress from the State of Texas,
opening statement ................................................................................................ 97
Hon. Lee Terry, a Representative in Congress from the State of Nebraska,
opening statement ................................................................................................ 98
Hon. Henry A. Waxman, a Representative in Congress from the State of
California, opening statement ............................................................................. 99
(III)
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IV
Page
WITNESSES
Margaret Gaffney-Smith, Chief, Regulatory Program, Army Corps of Engi-
neers ...................................................................................................................... 101
Prepared statement .......................................................................................... 103
Mike Pool, Deputy Director, Bureau of Land Management, Department of
the Interior ........................................................................................................... 111
Prepared statement .......................................................................................... 113
Steven M. Anderson, Brigadier General (Retired), United States Army ............ 142
Prepared statement .......................................................................................... 145
Randall F. Thompson, Nebraska rancher .............................................................. 147
Prepared statement .......................................................................................... 149
SUBMITTED MATERIAL
Memo, dated June 22, 2011, from Carmine Difiglio, Deputy Assistant Sec-
retary for Policy Analysis, Office of Policy and International Affairs, De-
partment of Energy, to Keith J. Benes, Attorney-Advisor, Department of
State, submitted by Mr. Terry ............................................................................ 126
Article, dated February 1, 2012, ‘‘Obama’s Enemies List,’’ by Theodore B.
Olson in the Wall Street Journal, submitted by Mr. Pompeo .......................... 151
Article, dated December 31, 2011, ‘‘Mike Klink: Keystone XL pipeline not
safe,’’ by Mike Klink in the Lincoln Journal Star, submitted by Mr. Wax-
man ........................................................................................................................ 156
Letter, dated February 1, 2012, from Mike Klink of Auburn, Indiana, to
Mr. Waxman, submitted by Mr. Waxman ......................................................... .158
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AMERICAN JOBS NOW: A LEGISLATIVE HEAR-
ING ON H.R. 3548, THE NORTH AMERICAN
ENERGY ACCESS ACT—DAY 1
WEDNESDAY, JANUARY 25, 2012
HOUSE OF REPRESENTATIVES,
SUBCOMMITTEE ON ENERGY AND POWER,
COMMITTEE ON ENERGY AND COMMERCE,
Washington, DC.
The subcommittee met, pursuant to call, at 8:05 a.m., in room
2123 of the Rayburn House Office Building, Hon. Ed Whitfield
(chairman of the subcommittee) presiding.
Members present: Representatives Whitfield, Sullivan, Shimkus,
Walden, Terry, Burgess, Bilbray, Scalise, Olson, McKinley, Gard-
ner, Pompeo, Griffith, Barton, Kinzinger, Upton (ex officio), Rush,
Inslee, Markey, Green, Doyle, Gonzalez, and Waxman (ex officio).
Staff present: Charlotte Baker, Press Secretary; Caroline Basile,
Staff Assistant; Mike Bloomquist, Deputy General Counsel; Anita
Bradley, Senior Policy Advisor to Chairman Emeritus; Maryam
Brown, Chief Counsel, Energy and Power; Allison Busbee, Legisla-
tive Clerk; Patrick Currier, Counsel, Energy and Power; Garrett
Golding, Professional Staff Member, Energy; Cory Hicks, Policy Co-
ordinator, Energy and Power; Peter Kielty, Senior Legislative Ana-
lyst; Heidi King, Chief Economist; Ben Lieberman, Counsel, Energy
and Power; Dave McCarthy, Chief Counsel, Environment and Econ-
omy; Mary Neumayr, Senior Energy Counsel; Katie Novaria, Legis-
lative Clerk; Phil Barnett, Democratic Staff Director; Greg Dotson,
Democratic Energy and Environment Staff Director; Caitlin
Haberman, Democratic Policy Analyst; Elizabeth Letter, Demo-
cratic Assistant Press Secretary; and Alexandra Teitz, Democrat
Senior Counsel, Environment and Energy.
OPENING STATEMENT OF HON. ED WHITFIELD, A REPRESENT-
ATIVE IN CONGRESS FROM THE COMMONWEALTH OF KEN-
TUCKY
Mr. WHITFIELD. I would like to call this meeting to order this
morning, and the subject of this hearing is ‘‘American Jobs Now,’’
and we are going to be considering H.R. 3548, the North American
Energy Access Act.
I would also like to welcome those members of the referee train-
ing class. I didn’t realize you all were going to be with us this
morning but we are delighted you are here on the second row, and
I hope you will enjoy the hearing as well.
(1)
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2
Today’s hearing gives us the opportunity to learn why the
Obama administration denied a permit to build the Keystone pipe-
line from Canada though parts of the United States. How could the
Obama administration when presented with the chance to create
thousands of jobs and at the same time significantly reduce our de-
pendence on oil from the Middle East say ‘‘no’’ to the American peo-
ple?
Today we will examine how such a harmful decision was made
and explore opportunities to reverse that decision. While the ad-
ministration struggles to find a rational reason to reject the con-
struction of Keystone pipeline, we are going to look for ways to
build the Keystone pipeline.
This is a project that would cost about $7 billion to build. There
would not be any government money involved in this project. It is
all being supplied by private industry, and it would immediately
put at least 20,000 people to work. That certainly sounds like the
national interest to me.
If our President decides that sending three aircraft carrier strike
groups to the Strait of Hormuz to defend the free flow of oil, if he
thinks that is in the national interest, then one would also think
a pipeline from Canada that would help us be less dependent on
Middle Eastern oil would also serve the national interest.
The President’s own State Department determined that the pipe-
line would have no significant impact on the environment. The
President said it himself. His rejection of the Keystone pipeline is
not based on its merits. He said that, which makes us belief that
the decision to reject the pipeline was solely a political decision to
help him be reelected.
[The prepared statement of Mr. Whitfield follows:]
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Opening Statement of the Honorable Ed Whitfield
Subcommittee on Energy and Power
Hearing on "American Jobs Now: H.R. 3548, the
North American Energy Access Act"
January 25, 2012
(As Prepared for Delivery)
Today's hearing gives us the opportunity to examine solutions to a problem that
shouldn't exist. The problem I'm speaking of is how an administration can be
presented with the chance to create tens of thousands of jobs while reducing our
dependence on Middle East sources of oil, yet completely squander the opportunity.
Today we're here to look into how such an unacceptable decision was made and how
it can be corrected so that we are able to create 20,000 jobs and relieve our
dependence on hostile sources of fuel through this project.
The phrase "national interest" should be somewhat simple to understand. If the
nation is plagued by persistent unemployment and a private company is willing to
spend $7 billion to construct an infrastructure project, putting over 100,000 people
to work - that sounds like something that serves the national interest.
If our President decides that sending aircraft carrier strike groups to the Strait of
Hormuz to defend oil flow is in the national interest, then one would also think a
pipeline from Canada that would help eliminate our Middle East oil imports also
serves the national interest.
Unfortunately, that is not the same conclusion that President Obama reached, stating
that they needed more time. Over 3 years was not enough time. Eleven agencies
reviewing the pipeline was not enough review.
President Obama's delays could risk losing the project entirely, and even the State
Department agrees in its OWN environmental impact statement that the "no action"
option (not building the pipeline at all) is the wrong option. But I worry that's where
we are headed.
So today we want to ask questions of the Administration and hear their perspective
on legislation offered by our colleague Mr. Terry of Nebraska.
###
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[H.R. 3548 follows:]
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H.R.3548
112TH CONGRJ:;JSS
1ST SESSION
To facilitatt' United States access to North American oil resources, and
for other purposes.
IN THE HOUSE 0Ii' HEPHESENTATIVES
DEC~=lVlEKR 2, 2011
:\ill'. TERRY (for himself, Mr. UPTON, Mr. WmTF'mLD, Mrs. Blu\ClillFRN, NIl'.
LA1'TA, :\ill'. MURPHY of Penllsylvllnia, Mrs. McMORRIS RODGKRS, Mr.
Rr<JHBKRG, Mr. B~JRG, Mr. HARRIS, Mr. PITT"" Mr. SITI"LIVAN, Mr.
SHIMKCS, Mr. SCALISE, Mr. Or,soN, :\ill'. GARDNER, Mr. POMPEO, Mr.
IUNZINGKR of Illinois, Mr. BOUSTANY, Mr. GRIM]\[, Mr. BllRGKSS, NIl'.
THORNBERRY, NIl'. CAWl'eJR, J\Ir. NIHJGEBAegR, Ms. GRA1'WER, Mr. CllL
BEf(SO", Mr. flAM ,JOfINSO" of Texas, Mr. BARLETTA, Mr. lVlARINO, Mr.
KKLLY, Mr. SCHOCK, lVIr. LAT01Jf(KTTE, :\ill'. MCCOTTItiH, Mr. DAVIS of
Kentucky, Mr. Trm\ER of Ohio, Mr. PEARCE, Mr. GlEBS, Mr. MILLEIt
of Florida, Mr. P01\.llES, Mr. MANZl'LLO, Mr. RmToN of Texas, and Mr.
flHUS'J'EIt) introdueed the following bill; which was referred to the COlll
mittee on Energy and Commeree, and in addition to the Committees on
Transportat.ion and IufrastnH't.ure and Natural Resollrces, 1'0(' a period
to be subsequently detprmined by the Speaker, in eaeh ease for consider
ation of such provisions as fall wit.hin the jurisdiction of the committee
concenlcd
A BILL
To faeilitate United States aeeess to North ~\.meriean oil
resourees, and for other purposes,
1 Be it enaeted by the Se:naie and lIouse Ql Re]Jm~enta-
2 lives of the United Slcdes ofA merica. in Congress assembled,
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6
2
1 SECTION 1. SHORT TITLE.
2 '{'his Aet may be eited as the "North Ameriean En-
3 ergy Aeeess Aet".
4 SEC. 2. RESTRICTION.
5 (a) IN GENERAL.-No person may eonstruet, ope1'-
6 ate, or maintain the oil pipeline and related faeilities de-
7 seribed in subseetion (h) exeept in aeeorclanee with a pel'-
8 mit issued under this Act.
9 (b) PIPELINE.-'l'he pipeline and related faeilities re-
10 ferred to in subsection (a) are those described in the Final
11 Environmental Impaet Statement for the Keystone XIl
12 Pipeline Prqject issued by the Department of State on Au-
13 gust 2fj, 2011, ineluding an,v modified version of that pipe-
14 line and related ftt(·ilities.
15 SEC. 3. PERMIT.
16 (a) ISSUANCE.-
17 (1) By FERC.-'l'he Federal Energy Regulatory
18 Commission shall, not later than 30 days after re-
19 ceipt of an applieation therefor, issue a permit for
20 the eonstrnetion, operation, and maintenance of the
21 oil pipeline and related facilities described in seetion
22 2(b), to be implemented in aeeordanee ,,'ith the
23 terms of the Pinal Environmental Impaet Statement
24 deseribed in seetion 2(b). The Commission shall not
25 be required to pt'epare a Reeord of Deeision under
26 seetion 1505.2 of title 40 of the Code of Pederal
.HR 3548 IH
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