Should Regulations Involving Energy Infrastructure Projects That Cross International Borders be Reformed? (H.R. 2883)

What is H.R. 2883?

(Updated January 18, 2021)

This bill would enact a series of reforms aimed at promoting border energy infrastructure projects that cross international borders, ranging from oil and gas pipelines to electric transmission facilities.

It would require the Federal Energy Regulatory Commission (FERC) and the Dept. of Energy to issue a certificate of crossing for a pipeline crossing international borders within 120 days after a National Environmental Policy Act (NEPA) review is completed unless the pipeline is found to not be in the public interest. Certificates wouldn’t be required to modify existing projects

Completed applications for importing or exporting natural gas to Canada and Mexico would be considered for approval within 30 days of FERC getting the application.

A provision of law allowing the federal government to buy rights-of-way — including through eminent domain — for an electricity exchange between Canada and North Dakota, South Dakota, and Nebraska would be amended to note that hearings have been conducted which found the proposed facilities wouldn’t hurt the U.S. electricity supply.

A presidential permit or executive order would no longer be needed to build, connect, operate, or maintain an oil or natural gas pipeline or electric transmission facility that crosses international borders.

Argument in favor

This bill would simplify the process for building oil and natural gas pipelines and electrical transmission facilities that cross international borders, boosting the U.S. energy industry, creating jobs, and delivering cheaper energy to consumers.

Argument opposed

By making it easier to building oil and natural gas pipelines and electrical transmission facilities that cross international borders this bill would deepen the role of fossil fuels in the economy and risk environmental damage.

Impact

Oil and natural gas pipelines and electrical transmission facilities that cross internatnional borders; FERC and the Dept. of Energy.

Cost of H.R. 2883

A CBO cost estimate is unavailable.

Additional Info

In-Depth: Sponsoring Rep. Markwayne Mullin (R-OK) introduced this bill to provide regulatory certainty and streamline the construction and operation of international border-crossing energy infrastructure used for the import and export of oil, natural gas, and electricity:

“Energy production in the United States plays a vital role in our country’s job creation and economic growth. The Promoting Cross-Border Energy Infrastructure Act simplifies the construction and operation of energy facilities that cross international borders.  It restructures the process so that cross-border pipelines can deliver lower costs to consumers and create additional jobs in the energy field, rather than these energy projects being politicized or hung up in regulatory uncertainty.”

Lead cosponsor Rep. Gene Green (D-TX) added:

“The United States is in a great position to lead a unified energy sector with its neighbors and allies that would benefit all three nations. As energy production in the United States continues to grow it is essential that we have the infrastructure necessary to support the industry.  These projects should undergo an effective and responsible process for approval and not be subject to political calculations or obstructions.  Our bipartisan legislation will strengthen our alliance and energy independence for the future.”

This legislation passed the House Energy and Commerce Committee on a party-line 31-20 vote and has the support of one Democratic cosponsor, Rep. Green.

Media:

• Sponsoring Rep. Markwayne Mullin (R-OK) Press Release
  
• Houston Public Media
  
• OK Energy Today
  
• Penn Energy