North American Energy Act

Key Points

• The bill replaces the current Presidential permit system for cross-border energy projects with a new "certificate of crossing" issued by federal energy agencies. This is meant to create a faster, more predictable approval process for oil pipelines, natural gas pipelines, and electric transmission lines crossing the U.S. border with Canada or Mexico.
• FERC would handle oil and gas pipeline approvals while the Department of Energy would handle electric transmission lines. Once environmental review is done, the agency must issue a certificate within 90 days unless it finds the project is not in the public interest.
• Natural gas import and export applications to Canada or Mexico would get a fast track: the government must approve them within 30 days of receiving a complete application. The bill also repeals the requirement to get a federal order before transmitting electricity across the border.
• Existing pipelines and power lines that are already operating would be grandfathered in and would not need new certificates. Routine maintenance or modifications to existing projects, like changing flow direction or adding pump stations, also would not require new approvals.
• If enacted, the new rules would take effect one year after the bill becomes law. Agencies would need to publish proposed rules within 180 days and finalize them within one year.