US Federal Senate Bill SB23

US Federal 2023-2024 Regular Session

• Introduced: 1/23/23
• Refer: 1/23/23

Caption

Promoting Cross-border Energy Infrastructure Act This bill establishes a new process for approving the construction and operation of energy infrastructure across an international border of the United States and replaces the existing process established under specified executive orders. Specifically, this bill requires a person to obtain a certificate of crossing before constructing, connecting, operating, or maintaining a border-crossing facility for the import or export of oil, natural gas, or electricity across a U.S. border between Canada or Mexico. A certificate must be obtained from the Federal Energy Regulatory Commission (FERC) for a facility consisting of oil or natural gas pipelines or the Department of Energy (DOE) for an electric transmission facility. As a condition of issuing a certificate, DOE must require that an electric transmission facility be constructed, connected, operated, or maintained consistent with specified policies and standards. FERC and DOE must meet a deadline for issuing a certificate as set forth by this bill. The bill also requires FERC to meet a deadline for approving applications to import or export natural gas to or from Canada or Mexico.

Impact

The bill establishes specific timelines for review and approval of applications, which proponents argue will foster greater investment in energy infrastructure and facilitate more efficient energy trade between the U.S., Canada, and Mexico. By mandating that relevant agencies respond to applications within defined periods, it aims to create a more predictable regulatory environment, potentially increasing the competitiveness of American energy exports. Additionally, it explicitly removes the need for a Presidential permit for certain projects, further simplifying the process.

Summary

Senate Bill 23, known as the Promoting Cross-border Energy Infrastructure Act, proposes a new and streamlined regulatory framework for the construction, operation, and maintenance of international border-crossing facilities related to the import and export of oil and natural gas, as well as the transmission of electricity. This bill aims to replace existing processes with a standardized procedure that seeks to eliminate bureaucratic delays while reinforcing North American energy security. Under this legislation, parties will need to secure a 'certificate of crossing' from the Federal Energy Regulatory Commission (FERC) for oil and gas pipelines, or from the Department of Energy (DOE) for electric transmission facilities, which replaces the current executive order-based framework.

Contention

Despite the intentions behind SB 23, there are notable points of contention surrounding the bill. Critics argue that the accelerated approval process may lead to insufficient environmental assessments, risking the potential for negative environmental impacts along border regions. There is concern that quick approvals might bypass local considerations and hinder community input, which could be detrimental to ecosystems and public health. Supporters counter this by emphasizing the need for energy independence and the urgent demand for modernized infrastructure, suggesting that careful planning and regulation can still be respected within the streamlined process.