S. 1485: North American Energy Act

The North American Energy Act aims to create a streamlined and consistent process for authorizing the construction, connection, operation, and maintenance of international border-crossing facilities used for the import and export of oil, natural gas, and the transmission of electricity. Below are the key components of the bill:

Definitions and Scope

• Border-Crossing Facility: This includes sections of oil pipelines between international boundaries and their first mainline valves, as well as portions of natural gas pipelines or electric transmission facilities located at U.S. international borders.
• Appropriate Federal Agencies: Various federal officials and agencies are involved, such as the Secretaries of Defense, Interior, Energy, and others who will participate in approving projects.

Authorization Requirements

• Entities must obtain a certificate of crossing before constructing or operating border-crossing facilities for oil, natural gas, or electricity.
• The relevant authority will issue this certificate within 90 days after a final decision is made regarding environmental assessments, unless public interest dictates otherwise.
• The Federal Energy Regulatory Commission (FERC) will handle oil and natural gas facilities, while electric transmission facilities will be managed by the Secretary of Energy.

Exemptions

• Modifications and maintenance of existing facilities do not require a new certificate as long as they have been previously approved.

Changes to Natural Gas and Electric Transmission Regulations

• For natural gas imports and exports with Canada and Mexico, the bill mandates that applications must be approved within 30 days.
• It repeals the requirement for electric transmission facilities to obtain prior orders for certain activities, simplifying the process for interstate electricity exchange.

No Presidential Permit Required

No Presidential or similar permits will be needed for the construction or operation of oil, natural gas pipelines, or electricity transmission facilities across international borders.

Implementation Timeline

Provisions of the bill regarding the authorization process will go into effect one year after its enactment. Regulatory agencies are tasked with establishing guidelines within 180 days of enactment and finalizing rules within a year.

Judicial Review

Entities that disagree with agency decisions can appeal in the United States Court of Appeals within 60 days of the final action.

Relevant Companies

• XOM (ExxonMobil Corporation) - As a major player in oil and gas, this legislation could impact its ability to expedite facility operations for cross-border projects.
• CVX (Chevron Corporation) - Similar to ExxonMobil, Chevron may benefit from expedited processes for their pipeline and gas facilities located at borders.
• NEE (NextEra Energy, Inc.) - As a prominent utility company, changes to the electric transmission facility regulations could influence its international operations.