Transportation and Infrastructure

Energy Secretary Jennifer Granholm called the Biden administration’s recent moratorium on liquefied natural gas export permits “a pause for a study” at a Senate Energy and Natural Resources Committee hearing Tuesday, according to POLITICO Pro (subscription).

Committee Chairman Sen. Joe Manchin (D-WV) questioned several recent energy-related moves by the Biden administration.

What’s going on: “It is a pause for a study. You don’t need to hype it out beyond what it is,” Granholm told the committee on Tuesday. “It is a pause to get data.”

• The administration has received bipartisan criticism for the freeze of LNG export permits since announcing the move in January. NAM President and CEO Jay Timmons said the pause “undercut[s] President Biden’s own stated goals” and “weakens our country while giving Russia an upper hand.”

An examination of prices: Granholm told the committee the pause “was needed to examine prices and market demand since the last time a study was conducted.”

• She said the study will take into account foreign nations’ emissions “that may be linked to the absence of U.S. natural gas shipments.”

45V guidance: Sen. Manchin asked Granholm about proposed guidance on the Inflation Reduction Act’s first tax credit, known as the 45V. In a news release from the committee, Sen. Manchin said the proposed guidance, “if implemented … would jeopardize the viability of the industry before it even has a chance to get off the ground.”

• Sen. Manchin mentioned a recent letter to the administration from all seven “hydrogen hubs”—locations designated late last year by the administration to scale up the nation’s clean hydrogen production—saying the centers would “no longer be economically viable” without revision to the 45V proposed guidance.
• “Do you think we should heed the warning of [the Department of Energy]’s own seven hubs, and do you have any insight into what might be changed?” he asked.
• Granholm responded that the administration has “gotten over 30,000 responses, and they are working through those responses.”
• She added, according to POLITICO Pro, “The bottom line is clearly we want the hubs to succeed.”

Our take: “No matter what you call it, the administration’s pause on LNG export permits runs counter to the wishes of the American people and the interests of the United States and our allies,” said NAM Director of Energy and Resources Policy Michael Davin.

• “According to a recent NAM survey, 87% of Americans believe the U.S. should continue to export natural gas. The administration should listen.”