Cross-Border Energy Projects Get an Express Lane: New Bill Sets 90-Day Agency Approval, Ditches Presidential Permit

The North American Energy Act is looking to overhaul how the U.S. gives the green light to major energy projects crossing our borders – think oil and natural gas pipelines, and big electric transmission lines connecting us with Canada and Mexico. Gone would be the current system requiring a Presidential Permit. Instead, these projects would need a 'certificate of crossing.' For oil and gas pipelines, the Federal Energy Regulatory Commission (FERC) makes the call; for electric lines, it's the Secretary of Energy. The headline news here is the timeline: these agencies are generally mandated to issue this certificate within 90 days after the environmental homework under the National Environmental Policy Act (NEPA) gets its final stamp, provided the project isn't found to be against the 'U.S. public interest.'

From Oval Office to Agency Office: Who Calls the Shots Now?

For decades, getting a major energy project like a pipeline across the U.S. border often involved a process that could culminate in a Presidential Permit – a decision made at a very high level. This bill proposes to change that game, shifting the primary decision-making power for these 'border-crossing facilities' directly to federal agencies. As mentioned, FERC will handle oil and gas pipelines, and the Department of Energy will oversee electric transmission facilities. While this could streamline things, the bill states a certificate can be denied if it's 'against the U.S. public interest' – a term whose specific criteria will be important to watch for in the upcoming agency rulemaking, to ensure it provides a clear standard. For electricity projects, there's an added layer: they still have to meet the standards set by the relevant Electric Reliability Organization and regional grid operators, which is key for maintaining a stable power supply.

Speed Pass for Energy: What's the New Timeline?

The most significant shift for many will likely be the speed. That 90-day window for a 'certificate of crossing' after NEPA environmental reviews are finalized is a notable acceleration. Imagine you're involved with a company planning a new power line to Canada; once the comprehensive environmental impact statement is done, the clock starts ticking for the Department of Energy. For natural gas trade specifically with Canada and Mexico, the bill amends Section 3(c) of the Natural Gas Act (15 U.S.C. 717b(c)) to require the Commission to approve import or export applications within just 30 days after a complete application is filed. Plus, a specific requirement under Section 202(e) of the Federal Power Act (16 U.S.C. 824a(e)) to get an order for sending electricity to Canada and Mexico is being repealed altogether. For businesses in the energy sector, this could mean projects get planned and potentially built much faster. For communities or environmental advocates, these tight deadlines might raise questions about the depth of review possible in such compressed timeframes.

Who Gets a Hall Pass? Exemptions and Existing Projects

Not every cross-border energy facility will be subject to this new 'certificate of crossing.' The bill includes some important exemptions. If a pipeline or power line is already operating, has its permits, or even has a permit application pending when this bill is enacted (with a two-year window for those pending applications if the permit isn't issued yet), it's generally excluded from these new rules. Also, if an existing facility just needs 'modifications' or routine 'maintenance' – say, an energy company needs to repair a section of an existing oil pipeline at the border – they won't need to go through this new certificate process. This aims to ensure that keeping current infrastructure in good working order isn't unnecessarily delayed by new approval layers.

The Fine Print: Rollout, Rules, and Challenging Decisions

These changes won't happen overnight. The core parts of this new approval system are set to become effective one year after the bill is signed into law. Before that, the relevant agencies – FERC and the Department of Energy – have their own homework. They need to publish proposed rules within 180 days of enactment and finalize those rules within one year. This rulemaking process will be crucial as it will fill in the operational details of how this new 'certificate of crossing' system will actually function. And if an entity feels an agency got a final decision on one of these certificates wrong, the bill provides a path to challenge it: they'd have 60 days from the final agency action to file for a review in the U.S. Court of Appeals.