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Title II — Energy Security and Diplomacy

H.R. 8 · 114th Congress · Dec 7, 2015 · Lineage

II Energy Security and Diplomacy

Sec. 2001 Sense of Congress

Congress finds the following:
(1)
North America’s energy revolution has significantly enhanced energy security in the United States, and fundamentally changed the Nation’s energy future from that of scarcity to abundance.
(2)
North America’s energy abundance has increased global energy supplies and reduced the price of energy for consumers in the United States and abroad.
(3)
Allies and trading partners of the United States, including in Europe and Asia, are seeking stable and affordable energy supplies from North America to enhance their energy security.
(4)
The United States has an opportunity to improve its energy security and promote greater stability and affordability of energy supplies for its allies and trading partners through a more integrated, secure, and competitive North American energy system.
(5)
The United States also has an opportunity to promote such objectives by supporting the free flow of energy commodities and more open, transparent, and competitive global energy markets, and through greater Federal agency coordination relating to regulations or agency actions that significantly affect the supply, distribution, or use of energy.

Sec. 2002 Energy security valuation

(a)
Establishment of Energy Security Valuation Methods— Not later than 1 year after the date of enactment of this Act, the Secretary of Energy, in collaboration with the Secretary of State, shall develop and transmit, after public notice and comment, to the Committee on Energy and Commerce, the Committee on Science, Space, and Technology, and the Committee on Foreign Affairs of the House of Representatives and the Committee on Energy and Natural Resources, the Committee on Commerce, Science, and Transportation, and the Committee on Foreign Relations of the Senate a report that develops recommended United States energy security valuation methods. In developing the report, the Secretaries may consider the recommendations of the Administration’s Quadrennial Energy Review released on April 21, 2015. The report shall—
(1)
evaluate and define United States energy security to reflect modern domestic and global energy markets and the collective needs of the United States and its allies and partners;
(2)
identify transparent and uniform or coordinated procedures and criteria to ensure that energy-related actions that significantly affect the supply, distribution, transportation, or use of energy are evaluated with respect to their potential impact on energy security, including their impact on—
(A)
consumers and the economy;
(B)
energy supply diversity and resiliency;
(C)
well-functioning and competitive energy markets;
(D)
United States trade balance; and
(E)
national security objectives; and
(3)
include a recommended implementation strategy that identifies and aims to ensure that the procedures and criteria referred to in paragraph (2) are—
(A)
evaluated consistently across the Federal Government; and
(B)
weighed appropriately and balanced with environmental considerations required by Federal law.
(b)
Participation— In developing the report referred to in subsection (a), the Secretaries may consult with relevant Federal, State, private sector, and international participants, as appropriate and consistent with applicable law.

Sec. 2003 North American energy security plan

(a)
Requirement— Not later than 1 year after the date of enactment of this Act, the Secretary of Energy, in collaboration with the Secretary of State, shall develop and transmit to the Committee on Energy and Commerce and the Committee on Foreign Affairs of the House of Representatives and the Committee on Energy and Natural Resources and the Committee on Foreign Relations of the Senate the plan described in subsection (b).
(b)
Purpose— The plan referred to in subsection (a) shall include—
(1)
a recommended framework and implementation strategy to—
(A)
improve planning and coordination with Canada and Mexico to enhance energy integration, strengthen North American energy security, and promote efficiencies in the exploration, production, storage, supply, distribution, marketing, pricing, and regulation of North American energy resources; and
(B)
address—
(i)
North American energy public data, statistics, and mapping collaboration;
(ii)
responsible and sustainable best practices for the development of unconventional oil and natural gas; and
(iii)
modern, resilient energy infrastructure for North America, including physical infrastructure as well as institutional infrastructure such as policies, regulations, and practices relating to energy development; and
(2)
a recommended framework and implementation strategy to improve collaboration with Caribbean and Central American partners on energy security, including actions to support—
(A)
more open, transparent, and competitive energy markets;
(B)
regulatory capacity building;
(C)
improvements to energy transmission and storage; and
(D)
improvements to the performance of energy infrastructure and efficiency.
(c)
Participation— In developing the plan referred to in subsection (a), the Secretaries may consult with other Federal, State, private sector, and international participants, as appropriate and consistent with applicable law.

Sec. 2004 Collective energy security

(a)
In general— The Secretary of Energy and the Secretary of State shall collaborate to strengthen domestic energy security and the energy security of the allies and trading partners of the United States, including through actions that support or facilitate—
(1)
energy diplomacy;
(2)
the delivery of United States assistance, including energy resources and technologies, to prevent or mitigate an energy security crisis;
(3)
the development of environmentally and commercially sustainable energy resources;
(4)
open, transparent, and competitive energy markets; and
(5)
regulatory capacity building.
(b)
Energy Security Forums— Not later than 1 year after the date of enactment of this Act, the Secretary of Energy, in collaboration with the Secretary of State, shall convene not less than 2 forums to promote the collective energy security of the United States and its allies and trading partners. The forums shall include participation by the Secretary of Energy and the Secretary of State. In addition, an invitation shall be extended to—
(1)
appropriate representatives of foreign governments that are allies or trading partners of the United States; and
(2)
independent experts and industry representatives.
(c)
Requirements— The forums shall—
(1)
consist of at least 1 Trans-Atlantic and 1 Trans-Pacific energy security forum;
(2)
be designed to foster dialogue among government officials, independent experts, and industry representatives regarding—
(A)
the current state of global energy markets;
(B)
trade and investment issues relevant to energy; and
(C)
barriers to more open, competitive, and transparent energy markets; and
(3)
be recorded and made publicly available on the Department of Energy’s website, including, not later than 30 days after each forum, publication on the website any significant outcomes.
(d)
Notification— At least 30 days before each of the forums referred to in subsection (b), the Secretary of Energy shall send a notification regarding the forum to—
(1)
the chair and the ranking minority member of the Committee on Energy and Commerce and the Committee on Foreign Affairs of the House of Representatives; and
(2)
the chair and ranking minority member of the Committee on Energy and Natural Resources and the Committee on Foreign Relations of the Senate.

Sec. 2005 Authorization to export natural gas

(a)
Decision deadline— For proposals that must also obtain authorization from the Federal Energy Regulatory Commission or the United States Maritime Administration to site, construct, expand, or operate LNG export facilities, the Department of Energy shall issue a final decision on any application for the authorization to export natural gas under section 3 of the Natural Gas Act (15 U.S.C. 717b) not later than 30 days after the later of—
(1)
the conclusion of the review to site, construct, expand, or operate the LNG facilities required by the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); or
(2)
the date of enactment of this Act.
(b)
Conclusion of review— For purposes of subsection (a), review required by the National Environmental Policy Act of 1969 shall be considered concluded—
(1)
for a project requiring an Environmental Impact Statement, 30 days after publication of a Final Environmental Impact Statement;
(2)
for a project for which an Environmental Assessment has been prepared, 30 days after publication by the Department of Energy of a Finding of No Significant Impact; and
(3)
upon a determination by the lead agency that an application is eligible for a categorical exclusion pursuant to National Environmental Policy Act of 1969 implementing regulations.
(c)
Public disclosure of export destinations— Section 3 of the Natural Gas Act (15 U.S.C. 717b) is amended by adding at the end the following:

“(g) Public Disclosure of LNG Export Destinations—As a condition for approval of any authorization to export LNG, the Secretary of Energy shall require the applicant to publicly disclose the specific destination or destinations of any such authorized LNG exports.”

Sec. 2006 Environmental review for energy export facilities

Notwithstanding any other provision of law, including any other provision of this Act and any amendment made by this Act, to the extent that the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) applies to the issuance of a permit for the construction, operation, or maintenance of a facility for the export of bulk commodities, no such permit may be denied until each applicable Federal agency has completed all reviews required for the facility under such Act.

Sec. 2007 Authorization of cross-border infrastructure projects

(a)
Finding— Congress finds that the United States should establish a more uniform, transparent, and modern process for the construction, connection, operation, and maintenance of pipelines and electric transmission facilities for the import and export of liquid products, including water and petroleum, and natural gas and the transmission of electricity to and from Canada and Mexico.
(b)
Authorization of certain infrastructure projects at the national boundary of the united states—
(1)
Requirement— No person may construct, connect, operate, or maintain a cross-border segment of a pipeline or electric transmission facility for the import or export of liquid products or natural gas, or the transmission of electricity, to or from Canada or Mexico without obtaining a certificate of crossing for such construction, connection, operation, or maintenance under this subsection.
(2)
Certificate of crossing—
(A)
Issuance—
(i)
In general— Not later than 120 days after final action is taken under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) with respect to a cross-border segment described in paragraph (1), the relevant official identified under subparagraph (B), in consultation with appropriate Federal agencies, shall issue a certificate of crossing for the cross-border segment unless the relevant official finds that the construction, connection, operation, or maintenance of the cross-border segment is not in the public interest of the United States.
(ii)
Natural gas— For the purposes of natural gas pipelines, a finding with respect to the public interest under section 3(a) of the Natural Gas Act (15 U.S.C. 717b(a)) shall serve as a finding under clause (i) of this subparagraph.
(B)
Relevant official— The relevant official referred to in subparagraph (A) is—
(i)
the Secretary of State with respect to liquid pipelines;
(ii)
the Federal Energy Regulatory Commission with respect to natural gas pipelines; and
(iii)
the Secretary of Energy with respect to electric transmission facilities.
(C)
Additional requirement for electric transmission facilities— The Secretary of Energy shall require, as a condition of issuing a certificate of crossing for an electric transmission facility, that the cross-border segment be constructed, connected, operated, or maintained consistent with all applicable policies and standards of—
(i)
the Electric Reliability Organization and the applicable regional entity; and
(ii)
any Regional Transmission Organization or Independent System Operator with operational or functional control over the cross-border segment of the electric transmission facility.
(3)
Modifications to existing projects— No certificate of crossing shall be required under this subsection for a change in ownership, volume expansion, downstream or upstream interconnection, or adjustment to maintain flow (such as a reduction or increase in the number of pump or compressor stations) with respect to a liquid or natural gas pipeline or electric transmission facility unless such modification would result in a significant impact at the national boundary.
(4)
Effect of other laws— Nothing in this subsection shall affect the application of any other Federal statute (including the Natural Gas Act and the Energy Policy and Conservation Act) to a project for which a certificate of crossing is sought under this subsection.
(c)
Importation or exportation of natural gas to Canada and Mexico— Section 3(c) of the Natural Gas Act (15 U.S.C. 717b(c)) is amended by adding at the end the following: “In the case of an application for the importation or exportation of natural gas to or from Canada or Mexico, the Commission shall grant the application not later than 30 days after the date of receipt of the complete application.”.
(d)
Transmission of electric energy to Canada and Mexico—
(1)
Repeal of requirement to secure order— Section 202(e) of the Federal Power Act (16 U.S.C. 824a(e)) is repealed.
(2)
Conforming amendments—
(A)
State regulations— Section 202(f) of the Federal Power Act (16 U.S.C. 824a(f)) is amended by striking “insofar as such State regulation does not conflict with the exercise of the Commission’s powers under or relating to subsection 202(e)”.
(B)
Seasonal diversity electricity exchange— Section 602(b) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 824a–4(b)) is amended by striking “the Commission has conducted hearings and made the findings required under section 202(e) of the Federal Power Act” and all that follows through the period at the end and inserting “the Secretary has conducted hearings and finds that the proposed transmission facilities would not impair the sufficiency of electric supply within the United States or would not impede or tend to impede the coordination in the public interest of facilities subject to the jurisdiction of the Secretary”.
(e)
Effective date; rulemaking deadlines—
(1)
Effective date— Subsections (b) through (d), and the amendments made by such subsections, shall take effect on January 20, 2017.
(2)
Rulemaking deadlines— Each relevant official described in subsection (b)(2)(B) shall—
(A)
not later than 180 days after the date of enactment of this Act, publish in the Federal Register notice of a proposed rulemaking to carry out the applicable requirements of subsection (b); and
(B)
not later than 1 year after the date of enactment of this Act, publish in the Federal Register a final rule to carry out the applicable requirements of subsection (b).
(f)
Definitions— In this section—
(1)
the term cross-border segment means the portion of a liquid or natural gas pipeline or electric transmission facility that is located at the national boundary of the United States with either Canada or Mexico;
(2)
the terms Electric Reliability Organization and regional entity have the meanings given those terms in section 215 of the Federal Power Act (16 U.S.C. 824o);
(3)
the terms Independent System Operator and Regional Transmission Organization have the meanings given those terms in section 3 of the Federal Power Act (16 U.S.C. 796);
(4)
the term liquid includes water, petroleum, petroleum product, and any other substance that flows through a pipeline other than natural gas; and
(5)
the term natural gas has the meaning given that term in section 2 of the Natural Gas Act (15 U.S.C. 717a).

Sec. 2008 Report on smart meter security concerns

Not later than 1 year after the date of enactment of this Act, the Secretary of Energy shall transmit to Congress a report on the weaknesses in currently available smart meters’ security architecture and features, including an absence of event logging, as described in the Government Accountability Office testimony entitled “Critical Infrastructure Protection: Cybersecurity of the Nation’s Electricity Grid Requires Continued Attention” on October 21, 2015.