What This Bill Does
This bill creates a uniform process for approving border-crossing facilities that carry oil, natural gas, or electricity between the United States and other countries. It requires companies to get a "certificate of crossing" from federal agencies before building or operating these facilities at the international border.
##
Who It Affects
- Companies that want to build or operate oil pipelines, natural gas pipelines, or electric transmission lines across the U.S. border
- The Federal Energy Regulatory Commission (handles oil and gas pipelines)
- The Secretary of Energy (handles electricity transmission)
- Other federal agencies consulted on border projects
##
Key Provisions
- Companies must obtain a certificate of crossing before constructing, connecting, or operating border-crossing facilities for oil, natural gas, or electricity (Sec. 2(a)(1))
- Federal agencies must issue a certificate of crossing within 90 days after environmental review is complete, unless they determine the project is not in the public interest of the United States (Sec. 2(a)(2)(A))
- For natural gas imported from or exported to Canada or Mexico, the Federal Energy Regulatory Commission must grant applications within 30 days after receiving a complete application (Sec. 2(b))
- Presidential permits are no longer required for constructing, connecting, operating, or maintaining oil or natural gas pipelines or electric transmission facilities at the border (Sec. 2(d))
- No certificate of crossing is required to modify or maintain facilities that are already operating or previously approved (Sec. 2(e))
##
What Changes
If this bill becomes law, companies will follow a new 90-day federal approval process instead of existing procedures. Presidential permits will no longer be needed for these projects. Natural gas applications to Canada and Mexico will have a 30-day approval deadline. Facilities already operating or with pending permits are exempt from the new requirements.
##
Important Definitions
- **Border-crossing facility:** The portion of an oil pipeline between the international boundary and the first mainline valve on the U.S. side, or the portion of a natural gas or electric transmission facility located at the international border (Sec. 2(h)(2))
- **Modification:** A reversal of flow direction, change in ownership, change in flow volume, change in product delivered, addition or removal of an interconnection, or adjustment to regulate flow (Sec. 2(h)(5))
- **Oil:** Petroleum or a petroleum product (Sec. 2(h)(7))
##
Effective Date
The bill takes effect 1 year after the date it becomes law. Federal agencies must propose new rules within 180 days and finalize them within 1 year (Sec. 2(f)).
II
118TH CONGRESS
1ST SESSION
S. 989
To establish a more uniform, transparent, and modern process to authorize
the construction, connection, operation, and maintenance of international
border-crossing facilities for the import and export of oil and natural
gas and the transmission of electricity.
IN THE SENATE OF THE UNITED STATES
MARCH 27, 2023
Mr. HOEVEN (for himself, Mr. MULLIN, Mr. SULLIVAN, and Mr. BUDD) intro-
duced the following bill; which was read twice and referred to the Com-
mittee on Energy and Natural Resources
A BILL
To establish a more uniform, transparent, and modern proc-
ess to authorize the construction, connection, operation,
and maintenance of international border-crossing facili-
ties for the import and export of oil and natural gas
and the transmission of electricity.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘North American En-
4
ergy Act’’.
5
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•S 989 IS
SEC. 2. APPROVAL FOR BORDER-CROSSING FACILITIES.
1
(a) AUTHORIZATION OF CERTAIN ENERGY INFRA-
2
STRUCTURE PROJECTS AT AN INTERNATIONAL BOUND-
3
ARY OF THE UNITED STATES.—
4
(1) AUTHORIZATION.—Except as provided in
5
paragraph (3) and subsection (e), no person may
6
construct, connect, or operate, a border-crossing fa-
7
cility for the import or export of oil or natural gas,
8
or the transmission of electricity, across an inter-
9
national border of the United States without obtain-
10
ing a certificate of crossing for the border-crossing
11
facility under this subsection.
12
(2) CERTIFICATE OF CROSSING.—
13
(A) REQUIREMENT.—Not later than 90
14
days after final action is taken, by the relevant
15
official or agency identified under subparagraph
16
(B), under the National Environmental Policy
17
Act of 1969 (42 U.S.C. 4321 et seq.) with re-
18
spect to a border-crossing facility for which a
19
person requests a certificate of crossing under
20
this subsection, the relevant official or agency,
21
in consultation with appropriate Federal agen-
22
cies, shall issue a certificate of crossing for the
23
border-crossing facility unless the relevant offi-
24
cial or agency finds that the construction, con-
25
nection, or operation, of the border-crossing fa-
26
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•S 989 IS
cility is not in the public interest of the United
1
States.
2
(B) RELEVANT
OFFICIAL
OR
AGENCY.—
3
The relevant official or agency referred to in
4
subparagraph (A) is—
5
(i) the Federal Energy Regulatory
6
Commission with respect to border-cross-
7
ing facilities consisting of oil or natural
8
gas pipelines; and
9
(ii) the Secretary of Energy with re-
10
spect to border-crossing facilities consisting
11
of electric transmission facilities.
12
(C)
ADDITIONAL
REQUIREMENT
FOR
13
ELECTRIC
TRANSMISSION
FACILITIES.—In the
14
case of a request for a certificate of crossing for
15
a border-crossing facility consisting of an elec-
16
tric transmission facility, the Secretary of En-
17
ergy shall require, as a condition of issuing the
18
certificate of crossing under subparagraph (A),
19
that the border-crossing facility be constructed,
20
connected, operated, or maintained consistent
21
with all applicable policies and standards of—
22
(i) the Electric Reliability Organiza-
23
tion and the applicable regional entity; and
24
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•S 989 IS
(ii) any Regional Transmission Orga-
1
nization or Independent System Operator
2
with operational or functional control over
3
the border-crossing facility.
4
(3) EXCLUSIONS.—This subsection shall not
5
apply to any construction, connection, operation, or
6
maintenance of a border-crossing facility for the im-
7
port or export of oil or natural gas, or the trans-
8
mission of electricity—
9
(A) if the border-crossing facility is oper-
10
ating for such import, export, or transmission
11
as of the date of enactment of this Act;
12
(B) if a permit described in subsection (d)
13
for the construction, connection, operation, or
14
maintenance has been issued; or
15
(C) if an application for a permit described
16
in subsection (d) for the construction, connec-
17
tion, operation, or maintenance is pending on
18
the date of enactment of this Act, until the ear-
19
lier of—
20
(i) the date on which such application
21
is denied; or
22
(ii) 2 years after the date of enact-
23
ment of this Act, if such a permit has not
24
been issued by such date.
25
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•S 989 IS
(4) EFFECT OF OTHER LAWS.—
1
(A) APPLICATION TO PROJECTS.—Nothing
2
in this subsection or subsection (e) shall affect
3
the application of any other Federal statute to
4
a project for which a certificate of crossing for
5
a border-crossing facility is requested under
6
this subsection.
7
(B) NATURAL GAS ACT.—Nothing in this
8
subsection or subsection (e) shall affect the re-
9
quirement to obtain approval or authorization
10
under sections 3 and 7 of the Natural Gas Act
11
(15 U.S.C. 717b, 717f) for the siting, construc-
12
tion, or operation of any facility to import or
13
export natural gas.
14
(C) OIL PIPELINES.—Nothing in this sub-
15
section or subsection (e) shall affect the author-
16
ity of the Federal Energy Regulatory Commis-
17
sion with respect to oil pipelines under section
18
60502 of title 49, United States Code.
19
(D) SCOPE OF NEPA REVIEW.—Nothing in
20
this Act, or the amendments made by this Act,
21
shall affect the scope of any review required to
22
be conducted under section 102 of the National
23
Environmental Policy Act of 1969 (42 U.S.C.
24
4332) with respect to a project for which a cer-
25
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•S 989 IS
tificate of crossing for a border-crossing facility
1
is requested under this subsection.
2
(b) IMPORTATION OR EXPORTATION OF NATURAL
3
GAS TO CANADA AND MEXICO.—Section 3(c) of the Nat-
4
ural Gas Act (15 U.S.C. 717b(c)) is amended by adding
5
at the end the following: ‘‘In the case of an application
6
for the importation of natural gas from, or the exportation
7
of natural gas to, Canada or Mexico, the Commission shall
8
grant the application not later than 30 days after the date
9
on which the Commission receives the complete applica-
10
tion.’’.
11
(c) TRANSMISSION OF ELECTRIC ENERGY TO CAN-
12
ADA AND MEXICO.—
13
(1) REPEAL
OF
REQUIREMENT
TO
SECURE
14
ORDER.—Section 202(e) of the Federal Power Act
15
(16 U.S.C. 824a(e)) is repealed.
16
(2) CONFORMING AMENDMENTS.—
17
(A) STATE REGULATIONS.—Section 202(f)
18
of the Federal Power Act (16 U.S.C. 824a(f))
19
is amended by striking ‘‘insofar as such State
20
regulation does not conflict with the exercise of
21
the Commission’s powers under or relating to
22
subsection (e)’’.
23
(B) SEASONAL
DIVERSITY
ELECTRICITY
24
EXCHANGE.—Section 602(b) of the Public Util-
25
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•S 989 IS
ity Regulatory Policies Act of 1978 (16 U.S.C.
1
824a–4(b)) is amended by striking ‘‘the Com-
2
mission has conducted hearings and made the
3
findings required under section 202(e) of the
4
Federal Power Act’’ and all that follows
5
through the period at the end and inserting
6
‘‘the Secretary has conducted hearings and
7
finds that the proposed transmission facilities
8
would not impair the sufficiency of electric sup-
9
ply within the United States or would not im-
10
pede or tend to impede the coordination in the
11
public interest of facilities subject to the juris-
12
diction of the Secretary.’’.
13
(d) NO PRESIDENTIAL PERMIT REQUIRED.—No
14
Presidential permit (or similar permit) shall be required
15
pursuant to any provision of law or Executive order for
16
the construction, connection, operation, or maintenance of
17
an oil or natural gas pipeline or electric transmission facil-
18
ity, or any border-crossing facility thereof.
19
(e) MODIFICATIONS TO AND MAINTENANCE OF EX-
20
ISTING PROJECTS.—No certificate of crossing under sub-
21
section (a), or permit described in subsection (d), shall be
22
required for a modification to or maintenance of—
23
(1) an oil or natural gas pipeline or electric
24
transmission facility that is operating for the import
25
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•S 989 IS
or export of oil or natural gas or the transmission
1
of electricity as of the date of enactment of this Act;
2
(2) an oil or natural gas pipeline or electric
3
transmission facility for which a permit described in
4
subsection (d) has been issued; or
5
(3) a border-crossing facility for which a certifi-
6
cate of crossing has previously been issued under
7
subsection (a).
8
(f) EFFECTIVE DATES; RULEMAKING DEADLINES.—
9
(1)
EFFECTIVE
DATE.—Subsections
(a)
10
through (e) and the amendments made by such sub-
11
sections shall take effect on the date that is 1 year
12
after the date of enactment of this Act.
13
(2) RULEMAKING DEADLINES.—Each relevant
14
official or agency described in subsection (a)(2)(B)
15
shall—
16
(A) not later than 180 days after the date
17
of enactment of this Act, publish in the Federal
18
Register notice of a proposed rulemaking to
19
carry out the applicable requirements of sub-
20
section (a); and
21
(B) not later than 1 year after the date of
22
enactment of this Act, publish in the Federal
23
Register a final rule to carry out the applicable
24
requirements of subsection (a).
25
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•S 989 IS
(g) JUDICIAL REVIEW.—Any entity aggrieved by a
1
final agency action taken under this section may obtain
2
a review of such action by filing a petition for review in
3
the United States Court of Appeals for any circuit wherein
4
an applicant for authorization under this section is located
5
or has its principal place of business, or in the United
6
States Court of Appeals for the District of Columbia. The
7
petition must be filed not later than 60 days after such
8
action is taken.
9
(h) DEFINITIONS.—In this section:
10
(1) APPROPRIATE
FEDERAL
AGENCIES.—The
11
term ‘‘appropriate Federal agencies’’ in subsection
12
(a)(2)(A) means the Secretary of Defense, the Attor-
13
ney General, the Secretary of the Interior, the Sec-
14
retary of Commerce, the Secretary of Transpor-
15
tation, the Secretary of Energy, the Secretary of
16
Homeland Security, the Administrator of the Envi-
17
ronmental Protection Agency, and, for applications
18
concerning the border with Mexico, the United
19
States Commissioner of the International Boundary
20
and Water Commission.
21
(2) BORDER-CROSSING
FACILITY.—The term
22
‘‘border-crossing facility’’ means—
23
(A) the portion of an oil pipeline between
24
an international boundary and the first main-
25
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•S 989 IS
line valve on the United States side of an inter-
1
national boundary; and
2
(B) the portion of a natural gas pipeline or
3
electric transmission facility that is located at
4
an international boundary of the United States.
5
(3) ELECTRIC RELIABILITY ORGANIZATION; RE-
6
GIONAL
ENTITY.—The terms ‘‘Electric Reliability
7
Organization’’ and ‘‘regional entity’’ have the mean-
8
ings given those terms in section 215 of the Federal
9
Power Act (16 U.S.C. 824o).
10
(4) INDEPENDENT
SYSTEM
OPERATOR; RE-
11
GIONAL TRANSMISSION ORGANIZATION.—The terms
12
‘‘Independent System Operator’’ and ‘‘Regional
13
Transmission Organization’’ have the meanings
14
given those terms in section 3 of the Federal Power
15
Act (16 U.S.C. 796).
16
(5) MODIFICATION.—The term ‘‘modification’’
17
includes a reversal of flow direction, change in own-
18
ership, change in flow volume, change in product de-
19
livered, addition or removal of an interconnection, or
20
an adjustment to regulate flow (such as a reduction
21
or increase in the number of pump or compressor
22
stations or valves).
23
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•S 989 IS
(6) NATURAL GAS.—The term ‘‘natural gas’’
1
has the meaning given that term in section 2 of the
2
Natural Gas Act (15 U.S.C. 717a).
3
(7) OIL.—The term ‘‘oil’’ means petroleum or
4
a petroleum product.
5
Æ
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