II 118THCONGRESS 1 STSESSION 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 MARCH27, 2023 Mr. H OEVEN(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 VerDate Sep 11 2014 02:21 Apr 06, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S989.IS S989 kjohnson on DSK79L0C42PROD with BILLS 2 •S 989 IS SEC. 2. APPROVAL FOR BORDER-CROSSING FACILITIES. 1 (a) A UTHORIZATION OF CERTAINENERGYINFRA-2 STRUCTUREPROJECTS AT AN INTERNATIONAL BOUND-3 ARY OF THEUNITEDSTATES.— 4 (1) A UTHORIZATION.—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) C ERTIFICATE OF CROSSING.— 13 (A) R EQUIREMENT.—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 VerDate Sep 11 2014 02:21 Apr 06, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S989.IS S989 kjohnson on DSK79L0C42PROD with BILLS 3 •S 989 IS cility is not in the public interest of the United 1 States. 2 (B) R ELEVANT 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) A DDITIONAL 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 VerDate Sep 11 2014 02:21 Apr 06, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S989.IS S989 kjohnson on DSK79L0C42PROD with BILLS 4 •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) E XCLUSIONS.—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 VerDate Sep 11 2014 02:21 Apr 06, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S989.IS S989 kjohnson on DSK79L0C42PROD with BILLS 5 •S 989 IS (4) EFFECT OF OTHER LAWS .— 1 (A) A PPLICATION 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) N ATURAL 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) O IL 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) S COPE 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 VerDate Sep 11 2014 02:21 Apr 06, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S989.IS S989 kjohnson on DSK79L0C42PROD with BILLS 6 •S 989 IS tificate of crossing for a border-crossing facility 1 is requested under this subsection. 2 (b) I MPORTATION OR EXPORTATION OF NATURAL 3 G AS TOCANADA ANDMEXICO.—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) T RANSMISSION OFELECTRICENERGY TOCAN-12 ADA ANDMEXICO.— 13 (1) R EPEAL 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) C ONFORMING AMENDMENTS .— 17 (A) S TATE 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) S EASONAL DIVERSITY ELECTRICITY 24 EXCHANGE.—Section 602(b) of the Public Util-25 VerDate Sep 11 2014 02:21 Apr 06, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S989.IS S989 kjohnson on DSK79L0C42PROD with BILLS 7 •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) N OPRESIDENTIALPERMITREQUIRED.—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) M ODIFICATIONS TO AND MAINTENANCE OF EX-20 ISTINGPROJECTS.—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 VerDate Sep 11 2014 02:21 Apr 06, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S989.IS S989 kjohnson on DSK79L0C42PROD with BILLS 8 •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) E FFECTIVEDATES; RULEMAKINGDEADLINES.— 9 (1) E FFECTIVE 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) R ULEMAKING 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 VerDate Sep 11 2014 02:21 Apr 06, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S989.IS S989 kjohnson on DSK79L0C42PROD with BILLS 9 •S 989 IS (g) JUDICIALREVIEW.—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) D EFINITIONS.—In this section: 10 (1) A PPROPRIATE 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) B ORDER-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 VerDate Sep 11 2014 02:21 Apr 06, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S989.IS S989 kjohnson on DSK79L0C42PROD with BILLS 10 •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) E LECTRIC 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) I NDEPENDENT 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) M ODIFICATION.—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 VerDate Sep 11 2014 02:21 Apr 06, 2023 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S989.IS S989 kjohnson on DSK79L0C42PROD with BILLS 11 •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) O IL.—The term ‘‘oil’’ means petroleum or 4 a petroleum product. 5 Æ VerDate Sep 11 2014 02:21 Apr 06, 2023 Jkt 039200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6301 E:\BILLS\S989.IS S989 kjohnson on DSK79L0C42PROD with BILLS