Senators offer bill to reform energy project cross-border permitting

Sept. 16, 2014
Four US senators—2 Democrats and 2 Republicans—introduced legislation to prevent extended delays of energy projects requiring a cross-border permit by moving reviews of applications from the White House to appropriate federal agencies.

Four US senators—2 Democrats and 2 Republicans—introduced legislation to prevent extended delays of energy projects requiring a cross-border permit by moving reviews of applications from the White House to appropriate federal agencies.

John Hoeven (R-ND), Joe Manchin (D-W.Va.), Lisa Murkowski (R-Alas.), and Joe Donnelly (D-Ind.) offered the bill on Sept. 16, 3 days before the sixth anniversary of TransCanada Corp.’s original filing for presidential approval of the proposed Keystone XL crude oil pipeline’s cross-border permit application.

All but Donnelly are on the Energy and Natural Resources Committee. “We need to streamline the process for approval of energy infrastructure projects, so that they are not subject to endless, unnecessary delays,” he said. “I have long advocated for construction of the Keystone XL pipeline because it is in our economic and national security interests.”

Murkowski is the committee’s ranking minority member. “The jobs, economic activity, and enhanced security that the Keystone XL pipeline represents should have been realized years ago,” she said. “Unfortunately, politics got in the way of decisions that would have strengthened the ties with our neighbor and closest ally.”

They introduced their bill as House Energy and Commerce Committee leaders said they expected the full House to vote later in the week on a package of bills which included committee member Lee Terry’s (R-Neb.) measure that similarly would move cross-border energy project permit approval out of the White House (OGJ Online, Sept. 16, 2014).

The senators’ bill, the North American Energy Infrastructure Act, also would:

  • Impose a 120-day limit on the US Department of State to either issue a certificate of crossing or deny a project approval following completion of the National Environmental Policy Act (NEPA) process.
  • Focus the NEPA process on the federal section of the pipeline—the portion crossing the border with Canada or Mexico—and recognize that states are the ones to regulate the siting of pipelines within their boundaries.
  • Expedite gas pipeline permits to Canada or Mexico by requiring the US Department of Energy to approve a permit application within 30 days of its receipt.
  • And streamline electricity transmission permit processes by consolidating 2 separate DOE reviews into one determination.

“Energy infrastructure projects are too important to our economy and our national security to be dragged out, virtually for years in the case of the Keystone XL pipeline,” said Hoeven, the bill’s primary sponsor. “We need a process that is fact-based and transparent, a process that looks out for the interests of the American people now and into the future. Our bill achieves that goal.”

The House passed a similar measure in June by 238 to 173 votes, the senators noted. “This bipartisan, bicameral legislation would make it easier for companies to go through the approval process needed to attain pipeline and transmission permits with Canada or Mexico while also reducing the economic burden of unnecessary or redundant regulations,” Manchin said.

An American Petroleum Institute official applauded the senators’ introduction of the bill. A dysfunctional permitting process for energy projects is hurting the nation’s economy and national security, API Downstream and Industry Operations Group Director Bob Greco said on Sept. 16.

“While we need a consistent and robust regulatory process, it must be fair and be aligned with today’s energy realities,” he maintained. “Unnecessary regulatory burdens on America’s energy development will stifle investment, harm our economy, and weaken our national security.”

Contact Nick Snow at [email protected].