Sen Cruz and Rep Bridenstine Introduce American Energy Renaissance Act
LEGISLATION WILL CREATE JOBS AND OPPORTUNITY
BY EMBRACING THE AMERICAN ENERGY RENAISSANCE, REMOVING BARRIERS AND EXPANDING
March 18, 2015
U.S. Sen. Ted Cruz, R-Texas, and Rep. Jim Bridenstine, R-OK-1, today introduced
the American Energy Renaissance Act to empower the private sector to create
good-paying American jobs, spur economic growth and expand opportunity. The
companion legislation, introduced in the U.S Senate as S. 791 and in the House
of Representatives as H.R. 1487, will harness our nation's energy resources and
remove federal impediments to energy exploration, development and trade. The
legislation will also reduce American dependence on unfriendly nations for our
energy needs, and ensure the United States
will be able to exert its influence and support its allies around the world.
"Today America faces a pivotal question,"
said Sen. Cruz. "Will we lead the world into a new generation of American
prosperity led by the great American energy renaissance we're experiencing, or
will we instead shut off our borders, erect walls, and allow our friends and
allies to be dependent on tyrants like Vladimir Putin or Nicolás Maduro? We need
to come together in a bipartisan manner to say we support jobs, we support
economic growth, and we support standing united alongside our friends and allies
in defense of freedom. This legislation is a win-win. The only thing the federal
government needs to do is get out of the way and let Americans do what they do
best: dream, innovate, and prosper."
"Oil and gas production on private
lands created the entire energy boom over the past few years," said Rep.
Bridenstine. "Our proposed changes in law and policy will open federal lands and
reverse policies that cripple the free market and inhibit innovation and private
investment. Opening federal lands to oil and gas development, allowing exports
and infrastructure improvements, and stopping regulatory overreach will greatly
expand U.S. energy
We can enhance national security by using America's resources
to provide energy to our allies, particularly those in Eastern Europe currently
in thrall to Russian energy supplies, while we simultaneously lower domestic
energy costs, sustain the drive toward U.S. energy security, and support a
strong economy. The American Energy Renaissance will be a win on all fronts."
Specifically the American Energy Renaissance Act proposes the following:
Leave regulation of hydraulic fracturing in state hands. Hydraulic
fracturing is driving the American Energy Renaissance. States have proven they
can oversee hydraulic fracturing in a responsible, safe manner, and they should
be allowed to continue. The American Energy Renaissance cannot thrive if the
federal government disrupts this effective framework and impedes the jobs and
economic growth hydraulic fracturing is already providing.
Streamline the permitting process for upgrading existing and building new
operating capacity of U.S. refineries
has remained essentially stagnant for three decades. In order for the American
Energy Renaissance to reach its full potential, barriers must be removed from
expanding or constructing new refineries in the United States and the private sector
jobs they will create.
Phase out and repeal the Renewable Fuel Standard (RFS) over five years. The
RFS has proven unworkable and costly. Its mandate that an increasing percentage
of renewable biofuels be blended into gasoline and diesel each year ignores the
reality there are insufficient amounts of some biofuels to meet the standard. It
imposes significant costs, and offers few, if any, benefits. The RFS should be
phased out so producers and refiners can focus on maximizing domestic resource
Immediately approve and allow the private sector to build the Keystone pipeline. According
to the U.S.
State Department, constructing the Keystone XL pipeline could result in 42,000
jobs. Keystone has undergone five environmental reviews since its initial
application in 2008, and none has found a significant negative impact on the
environment. President Obama's former Energy Secretary admitted that the
decision as whether to approve the Keystone XL oil pipeline is a political one,
and not a decision founded in science.
Remove barriers to developing and approving additional national pipelines and
cross-border energy infrastructure. The
Keystone saga imposed by the federal government demonstrates the need to reform
the process of approving oil and natural gas pipelines, as well as electric
transmission lines, between the United States,
Exclude greenhouse gases from regulation by the EPA and other federal agencies. Proposals
to regulate greenhouse gases are very expensive and threaten hundreds of
thousands of jobs. The authority to regulate such gases should only occur with
explicit authority from Congress.
Stop certain EPA regulations that will adversely impact coal and electric power
2008, President Obama promised to bankrupt coal. As of October 2014, there were
already 381 coal units closed or closing in 36 states because of EPA policies.
These 381 closures amount to a total of more than 60,100 megawatts of
electricity generation no longer being available. Job losses as a result of coal
units being affected by EPA regulations could amount to more than 50,000 direct
jobs in the coal, utility, and rail industries, and an indirect job loss figure
Require Congress to approve and the President to sign EPA regulations that will
have a negative job impact, rather than allowing them to hide behind bureaucrats
who are assumed to be responsible for them now. Certain
planned and proposed EPA regulations could cost more than 2 million jobs.
Increasing regulatory restrictions more broadly could cost nearly 2.8 million
jobs over the next decade.
Expand energy development on federal lands by providing states the option of
leasing, permitting and regulating energy resources (oil and gas, wind and
solar) on federal lands within their borders. Onshore
and offshore federal land lands have about 43 percent of America's proven oil
reserves and 25 percent of natural gas reserves, but not all of the land is
available for energy development. Leasing and producing oil and natural gas on
federal land could create more than 1 million jobs.
For those states opting not to self-regulate, federal leasing, permitting, and
regulating must be reformed by:
Streamlining permitting and expanding development on federal lands by requiring
decisions regarding drilling permit applications to be made within 30 days
(which can be extended), requiring an explanation for any denial, and deeming
applications to be approved if no decision has been made within 60 days, unless
there are existing incomplete environmental reviews.
Improving certainty in the leasing and development process by instituting a
presumption that certain land will be leased and by prohibiting the government
from withdrawing a lease for any energy project, unless there is a violation of
terms of the lease.
Expand energy development in the National Petroleum Reserve in Alaska and on Indian
mean estimate for conventional oil in the National Petroleum Reserve in
is 895 million barrels of oil and 52.8 trillion cubic feet of gas. West of the
Mississippi River, Indian reservations contain almost 30 percent of the nation's
coal reserves, 50 percent of potential uranium reserves, and 20 percent of known
oil and gas reserves.
Open up the Coastal Plain of Alaska (ANWR) for development. ANWR
consists of 19 million acres in northeast
Alaska. Its 1.5-million-acre Coastal Plain is viewed as
a promising onshore oil prospect with potentially 7 billion barrels of
technically recoverable oil.
Expand the offshore areas of the Outer Continental Shelf (OCS) available for
the potential for significant oil and gas development off the coasts of the United States, the Obama Administration has
severely limited access to such resources by essentially prohibiting energy
exploration and development off the Atlantic
and Pacific coasts.
Streamline the permitting process for additional offshore exploration.Regulatory
barriers to obtain leases and permits to explore and develop offshore areas of
the Outer Continental Shelf should be removed by requiring lease sales within
180 days of enactment of the legislation and every 270 days thereafter, and
requiring approval or disapproval of drilling permits no later than 20 days
after an application is submitted.
Expand LNG exports by facilitating permits. As
of March 3, 2015, the Dept. of Energy had approved only nine export permits to
non-Free Trade Agreement countries. More than twenty applications are currently
End the crude oil export ban. Last
crude oil production increased 27 percent but many American refineries cannot
handle the additional crude for technical and capacity reasons. The United States is missing out on export
opportunities that could produce good paying private sector jobs in the United States.
Prevent excessively broad environmental review of coal export terminals. As
the EPA makes it harder to use coal as a source of energy for electricity in the
United States, there are opportunities to
export coal to other nations. Removing excessive environmental reviews can help
promote coal exports that will help keep coal jobs in the United States.
Direct all additional revenues generated by exploration and drilling on federal
lands (excluding the share allocated to the states) exclusively to national debt
national debt was approximately $18.2 trillion in December 2014. As we free the
development of U.S.
natural resources to spur economic and job growth, we should prevent revenues
from being used to further expand government programs and instead use it to free
taxpayers from the debt burden that hampers the nation's incredible potential.
Complete bill text can be found here.