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House of Representatives
Session of 2017 - 2018 Regular Session


Posted: May 31, 2018 03:59 PM
From: Representative Jim Christiana
To: All House members
Subject: Urging Congress to Support the Development of an Ethane Storage Hub
In the near future, I will introduce a resolution urging Congress to support measures to advance the development of an Appalachian storage hub to support the continued growth of jobs and the economy. The Appalachian region, defined here as Kentucky, Ohio, Pennsylvania, and West Virginia, contains world class supplies of natural gas and natural gas liquids that contribute to the country’s energy dominance and resurgence of American manufacturing.

As the 10th largest chemical-producing state, Pennsylvania's $24 billion chemical industry provides nearly 80,000 direct and related jobs and generates more than $410 million state and local taxes and $933 million federal taxes on an annual basis. An important asset to the industry’s continued growth is access to natural gas liquids which are the primary feedstock for chemical manufacturing.

The Commonwealth has an abundant supply of natural gas liquids to support a world-class petrochemical industry. Shell’s petrochemical facility in Beaver County is already underway and we should continue the momentum by encouraging measures to advance the development of an ethane storage hub in the Appalachian region.

This resolution supports the following federal bills:

· The "Appalachian Ethane Storage Hub Study Act of 2017" directs the Secretaries of Energy and Commerce to conduct a study of the feasibility of establishing an ethane storage and distribution hub in the United States.
· The "Capitalizing American Storage Potential Act" amends the Energy Policy Act of 2005 to make certain strategic energy infrastructure projects, such as the Appalachian storage hub, eligible for certain loan guarantees, and for other purposes.
· The federal “Appalachian Energy and Manufacturing Revitalization Act” directs Secretaries of Energy and Commerce to review permit requests related to an Appalachian storage hub and coordinate the relevant federal, state, and regional liaisons for timely approvals. It also urges the Federal Energy Regulatory Commission (FERC) to consider relevant licenses and permits for the necessary infrastructure to support the hub and for pertinent federal agencies to complete their reviews within 60 days of the completion of FERC licensing.
It is projected that the region contains enough natural gas liquids feedstock to attract $35 billion in new chemical and plastics industry investment. Chemical and plastic industry investments of this scale could create 100,000 new jobs, $28 billion in new economic output, more than $6 billion in annual payroll, and nearly $3 billion a year in new federal, state, and local tax revenue.

In order to fully capitalize on the opportunities that are in front of us, we need to take strategic steps to ensure the responsible and sustainable development of our energy resources.

Please join me to co-sponsor this important resolution.

Introduced as HR952