Representative Laurel Lee (R-FL) is introducing a bill that eases regulations surrounding the use of liquefied natural gas (LNG) in a marine context.
Specifically, Rep. Lee's Cutting LNG Bunkering Red Tape Act addresses the common practice of "bunkering," wherein ships that use LNG as fuel transfer it between each other over water.
During the Biden Administration, domestic ship-to-ship bunkering was ruled to be a form of exportation, which rendered the practice cumbersome. The Trump Administration has since reversed the exportation ruling, and the Cutting LNG Bunkering Red Tape Act codifies the reversal into law.
"The Biden Administration's harmful energy policies have created unnecessary regulatory burdens that stall innovation and weaken American energy leadership," said Rep. Lee in her press release, adding, "Liquefied natural gas is a more efficient, cleaner, and cost-effective energy source. My bill ensures that LNG bunkering is not hindered by red tape, so that ports in Florida and across the nation can continue to expand, drive job creation, and compete globally."
Similarly, Representative August Pfluger (R-TX), the bill's cosponsor, said, "LNG exports unequivocally benefit our economy, domestic prices, national security, and partners and allies around the world that want our product."
"Unfortunately, the Biden Administration spent four years imposing one regulation after another on these exports, stifling the energy industry," Rep. Pfluger continued. "This legislation permanently reverses one of these misguided policies to ensure American LNG can compete on the global stage by removing regulatory uncertainty and streamlining the use of it as a cleaner, more efficient fuel source for maritime transportation. I am proud to lead this legislation with my good friend from Florida, Representative Laurel Lee."
In April, Representative Aaron Bean (R-FL) introduced a similar bill, the Maritime Fuel Tax Parity Act (MFTPA), which removes a longstanding excise tax levied on seafaring vessels that use liquefied natural gas (LNG) instead of diesel, which is currently exempt from excise taxes.
