Representatives Introduce Bill To Address Backlog at FERC

As American natural gas production increases and demand for energy spikes around the world, the process at the Federal Energy Regulatory Commission (FERC) to review the applications for construction of energy export terminals has been stymied by a shortage of highly specialized engineers, assert two members of the U.S. House of Representatives.

Reps. Pete Olson (R-Texas) and Gene Green (D-Texas) maintain that salary is a critical component in deciding where to work, and it has become clear that at this time engineers can work in the private sector for significantly higher pay than FERC an offer. Olson and Green have introduced H.R. 6552, which aims to give FERC the flexibility to consult with the Office of Personnel Management (OPM) and determine appropriate salaries to hire staff.

“Not only is this step important in getting infrastructure built in this country, but it has precedent,” Olson said. “The Securities and Exchange Commission was given similar authority by Congress to bridge the wage gap in the financial sector. It makes sense in highly specialized energy jobs to do the same. Our energy can’t be properly utilized sitting in storage instead of being shipped to markets that need it. We must address this fundamental backlog in a smart way. Giving FERC needed pay flexibility in specific jobs will reduce that backlog and address a critical need.”

“The Federal Energy Regulatory Commission has a vital job for both ensuring environmental safety and advancing America’s energy dominance as we continue to see new expansion from the shale boom,” added Green.

“They need qualified engineers and lawyers to do this job effectively, but often can’t recruit talented individuals into these roles due to the severe limits of the government pay scale when compared to the private sector. Just as the Securities and Exchange Commission has been granted authority by Congress to address the wage gap, our bill will do the same at FERC, ensuring that talented regulators will be available to review much-needed infrastructure development.” Under H.R. 6552, FERC would have to consult with OPM to determine appropriate salaries. The commission would be able to offer higher salaries for positions and roles where a critical need is confirmed. Further, FERC would have to review decisions every five years. The commission would also have to report on hiring and staffing as the process moves forward.

“The task of reviewing applications for vital infrastructure such as liquefied natural gas export terminals is among the commission’s top responsibilities,” said FERC commissioner Neil Chatterjee. “While the talented staff at the commission has been working diligently to evaluate these applications, more needs to be done to ensure our process moves forward in an efficient manner. All stakeholders, from project developers to local communities, appreciate a process that is timely and predictable.”

(SOURCE: The Weekly Propane Newsletter, August 6, 2018)