North American Energy Act
The North American Energy Act would create a streamlined, uniform national process to authorize border-crossing energy infrastructure between the United States and its neighbors (Canada and Mexico). It focuses on pipelines for oil and natural gas, and electric transmission facilities that cross the international boundary. The core idea is to replace a patchwork of permits with a single “certificate of crossing” issued by the appropriate federal agency (FERC for oil/gas pipelines; the Secretary of Energy for electric transmission), after a NEPA review. The bill also repeals a historical requirement for a Presidential permit for cross-border electric projects and makes several adjustments to how cross-border energy projects are reviewed, built, modified, and maintained. It establishes deadlines, rulemaking timelines, and a path for judicial review. Potential impact includes a faster, clearer authorization process for cross-border energy projects, potential changes in how state and federal reviews interact, and a shift in regulatory authority away from Presidential permits toward streamlined agency-based certification. It may affect timelines, permitting strategy, and coordination among various federal entities, reliability organizations, and grid operators.
Key Points
- 1Single “certificate of crossing” path for border-crossing facilities:
- 2- For oil/natural gas pipelines, administered by the Federal Energy Regulatory Commission (FERC).
- 3- For electric transmission facilities, administered by the Secretary of Energy.
- 4- A facility cannot be constructed, connected, or operated across a border without this certificate, with limited exceptions.
- 590-day certification timeline after NEPA action:
- 6- After final action under NEPA, the relevant official must issue a certificate of crossing within 90 days unless the project is deemed not in the public interest.
- 7- For electric facilities, the certificate must also align with applicable reliability policies and regional grid operators’ standards.
- 8Exclusions and transitional provisions:
- 9- Projects already operating, already issued permits, or applications pending (until a specified denial date or up to 2 years) are generally exempt from the new crossing certificate requirement.
- 10Repeal and modernization of border-energy rules:
- 11- Repeals the requirement to obtain a Presidential permit for cross-border oil, natural gas, or electric transmission facilities.
- 12- Makes related conforming changes to state regulation references and existing FPA/PUC provisions.
- 13Modifications and maintenance:
- 14- Modifications or maintenance to existing cross-border facilities do not require a new crossing certificate if already authorized or permitted, subject to conditions.
- 15Administrative timelines and judicial review:
- 16- Effective date is one year after enactment.
- 17- Agencies must publish proposed and final rules within specified timeframes (proposed within 180 days; final within 1 year).
- 18- Eligible to seek judicial review in federal courts of appeals within 60 days of a final agency action.