H.R. 030 | EMPOWER Act: Expanding Modern Power Options With Energy Resilience

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IN THE SENATE

Mr. Storm of New York and Mrs.Trujillo-Kahiona of Hawaii  for themselves and others, with thanks to Mr. Faso, Mr. Kelly of Pennsylvania, Ms. Capito, Mr. Meadows, Mr. Rahall, Mr. Upton, Mr. Daines, Mr.Sanders, Mr. Shepherd, Mr. Allen,  Mrs. Rodgers, Mr. Heinrich, and others, a introduced the following bill;

A Bill

To improve domestic energy production and energy independence  both directly and through State and local governments, to improve American energy production, energy independence, energy innovation, and energy efficiency, to promote environmental sustainability and conservation, and for other purposes,

SECTION 1. Short Title

This Act may be cited as the American "EMPOWER Act: Expanding Modern Power Options With Energy Resilience”

Section 2. Nuclear.

a. To help support the development and deployment of advanced nuclear technologies:

(i) The Department of Energy shall develop a regulatory structure for new public-private partnerships in new nuclear technologies, including encouraging federal power purchase agreements and advanced cost recovery;

(ii) The Department of Energy shall implement the Gateway for Accelerated Innovation in Nuclear (GAIN) program to provide the nuclear community with access to the technical, regulatory, and financial support necessary to move innovative nuclear energy technologies toward commercialization while ensuring the continued safe, reliable, and economic operation of the existing nuclear fleet, providing trustworthy private sector and academic researchers with access to DOE National Labs, federal land use for demonstration facilities, and experimental, computational, and data capabilities;

(iii) The Nuclear Regulatory Commission shall develop a robust technology-inclusive and risk-informed licensing process for advanced reactors, including a process of regulatory review to adapt to new advanced designs and a staged licensing process to allow components of the design to be approved separately before the whole design is finalized; 

(iv) The deployment of Small Modular Reactors shall be supported by permitting federal agencies to enter into agreements with a term of up to 30 years to purchase power produced by SMRs; facilitate the Tennessee Valley Authority’s Clinch River Site project as a pilot project for SMRs, while simultaneously providing DOE with critical energy resilience and a potential opportunity to conduct research and isotope services; and require cooperation between the DoE and the DoD to identify facilities that can benefit from hosting or having an SMR located near the facility to achieve added energy resilience; and,

(v) Nuclear power shall be defined as a “clean power”. 

b. To support the creation of an advanced fuel supply, the Secretary of Energy shall:

(i)  Establish an adequate “strategic reserve” of higher assay low-enriched fuel (HA-LEU) at an enrichment of 19.75% in order to serve the needs of the advanced reactor community in the near term. The reserve should contain at least 6MT by 2017 and at least an additional 30MT by 2023;

(ii) Develop a fast neutron test facility with a design requirement that it utilize higher assay LEU to serve as a catalyst for the early production of this material;

(iii) Immediately declare a modest amount of its current inventory of highly enriched material, currently assigned to space or Navy propulsion needs, to be surplus in order to serve as the basis for establishing the strategic reserve outlined above, and to develop a plan to replenish such materials for space or Navy propulsion needs, or to present to Congress an alternative procurement strategy; 

(iv) Determine if the current capabilities to transport HA-LEU, either in the form of UF6, metal, oxide, or in the form of fuel for advanced reactors is sufficient to meet the expected need, and if not, shall engage in a 11 program with maximum reliance on the private-sector to design and seek licensing of sufficient transport containers within 5 years;

(v) Work with the Nuclear Regulatory Commission and the Department of Transportation to expedite the licensing of containers for UF6, metal, oxide or other forms of advanced reactor fuels; and,

(vi) Work with the NRC to expedite the process for conducting the review and approval of Category 2 security facilities, and to expedite the process for conducting the review and approval of increased enrichment of uranium. 

c. Restrictions on using export finance and development finance to support nuclear energy exports are hereby lifted, and the US shall use its influence to try to repeal such restrictions within the World Bank.

d. The Department of Energy shall produce a standardized process, with targets for review durations and appropriate security safeguards, for nuclear energy exports. 

e. The Nuclear Regulatory Commission shall create a regulatory process for approving consolidated interim nuclear waste storage facilities.

f. The Federal Energy Regulatory Commission (FERC) shall conduct a study to identify what market structures best encourage grid-scale decarbonization competition while ensuring competition, low prices, and a reliable grid.

(i) In the event that a deregulated power market is found to put nuclear power at an unfair competitive disadvantage, the DoE shall be authorized to use surplus royalty payments and power sale profits to compensate for such facilities. 

SECTION 3. HYDROPOWER. 

a. To improve the retrofitting and investment rate in US Army Corps of Engineer-owned hydropower facilities, investment in such facilities will be improved by:

(i) Allowing Power Marketing Administrations selling power generated by USACE-owned hydropower facilities to charge up to market rates; 

(ii) Developing a systematic process that covers the entire USACE-owned and operated hydropower fleet to identify, analyze and fund modernization projects and to identify facilities most in need of repair and maintenance;

(iii) Allowing funds earned through the sale of power to be used for modernization and non-routine maintenance projects;

(iv) Allowing USACE to enter into public-private partnerships to modernize dams and hydropower facilities; and,

(v) Reducing USACE backlogs by reauthorizing the Water Resources Development Act and creating an automatic deauthorization process for projects specified under that act, to reduce the WRDA backlog, automatically deauthorizing any project that has not received any construction funding in the past five years unless a specific waiver is granted by the President.

b. To facilitate faster regulatory approval of hydropower projects, the Federal Energy Regulatory Commission's coordinating role shall be strengthened. 

(i) Governmental entities and Indian tribes, when considering an aspect of an application for federal authorization, must coordinate with FERC and comply with its deadlines.

(ii) Information requests required for the permitting and regulatory process shall go through, and be pooled by, the FERC. 

(iii) The FERC when deciding whether to issue a license for hydropower project works, shall give equal consideration to minimizing infringement on the useful exercise and enjoyment of property rights held by non-licensees. The licensee, in developing any recreational resource within the project boundary, shall consider private landownership as a means to encourage and facilitate private investment, increased tourism, conservation, and recreational use.

c. To approve the speed and efficiency of environmental studies for hydropower projects under the National Environmental Policy Act and related legislation:

(i) Other recent studies conducted in the region, that are still relevant and meet current standards of environmental review, may be cited by developers in seeking hydropower project approval;

(ii) Public resources shall be made available to address common questions and recurring issues that arise during hydropower licensing or relicensing; and,

(iii) Electrification of municipal water systems shall be made exempt from the environmental study process.

(d) Hydropower shall be designated as a renewable resource for the purposes of federal purchasing requirements.

SECTION 4. GEOTHERMAL POWER. 

a. The Secretary of the Interior shall complete, and update every 10 years, a comprehensive nationwide geothermal resource assessment that examines the full range of domestic geothermal resources.

b. To promote geothermal activity on federal lands:

(i) Oil and gas leases on federal lands will, unless there is an explicit decision to the contrary, also allow coproduction of geothermal energy; and,

(ii) A uniform permitting process for geothermal energy developments on federal lands shall be developed, including by:

(1) Identifying relevant Categorical Exclusions;

(2) Identifying pre-approved sites for geothermal development, and where appropriate auctioning them; and,

(3) Prioritising the use of federal land for "proof of concept" projects in order to prove the viability of geothermal developments on other sites; and,

(iii) The same Categorical Exclusions provided to oil and gas drilling under the 2005 Energy Policy Act of 2005 shall be extended to geothermal drilling. 

c. The Secretary of Energy shall, via grants and technical assistance, support research, development, demonstration, and commercial application programs to expand geothermal energy production from hydrothermal systems, including programs for: 

(i) Development of advanced hydrothermal resource tools;

(ii) Field demonstration of industry coupled exploratory drilling;

(iii) Components and systems capable of withstanding extreme geothermal environments to develop geothermal reservoirs and geothermal energy;

(iv) Geothermal reservoir performance modeling;

(v) Mitigation of potential adverse environmental impacts of geothermal energy development;

(vi) Enhanced geothermal systems technologies, such as reservoir characterization, monitoring, and modeling; stress mapping; tracer development; three-dimensional tomography; and understanding seismic effects of reservoir engineering and stimulation;

(vii) Enhanced geothermal systems reservoir stimulation; 

(viii) Geothermal energy production from oil and gas fields and production and recovery of energy from geopressured resources; 

(ix) Hybrid opportunities for geothermal energy and new revenue streams, such as critical minerals recovery, for geothermal energy producers; and,

(x) Reducing barriers to all uses of geothermal energy. 

d. The Secretary of Energy shall:

(i) Award to an institution of higher education (or consortium) a grant to establish a Center for Geothermal Technology Transfer to serve as information clearinghouse for the geothermal industry on best practices to develop and utilize geothermal resources;

(ii) Expand DOE's GeoPowering the West program, renamed "GeoPowering America," to extend its geothermal technology transfer activities throughout the United States;

(iii) Seek to award grant funding, on a competitive basis, to an institution of higher education for a geothermal-powered energy generation facility on the institution's campus to provide electricity and space heating; and,

(iv) Support international collaborative efforts to promote the research, development, and deployment of geothermal technologies used to develop hydrothermal and enhanced geothermal system resources, in partnership with the African Rift Geothermal Development Facility, Australia, China, France, the Republic of Iceland, India, Japan, and the United Kingdom. 

e. $1 billion annually, adjusted for inflation, shall be appropriated to this section. 

SECTION 5. FOSSIL FUELS.

a. The Secretary of Energy shall carry out a comprehensive program, to be appropriated $100 million annually adjusted for inflation, to reduce methane emissions from flaring and venting natural gas during oil and natural gas production activities, recognizing that States are the primary regulators of oil and natural gas production activities and emissions, including by—

(1) providing technical assistance to State and public utility commissioners and officials, representatives from the energy industry, and other stakeholders from State, local, and Tribal organizations;

(2) accelerating the development and application of technologies and practices to reduce the flaring and venting of natural gas;

(3) maintaining a database that summarizes the relevant flaring and venting regulations in each of the oil and gas producing States; and

(4) informing the States and other stakeholders of potential options available to economically capture and utilize natural gas, and providing regular reports and technical conferences in aid of such efforts.

b. The Department of Energy shall, within the National Energy Technology Laboratory, establish a new Office of 21st Century Natural Gas Research, to be appropriated at least $100 million annually adjusted for inflation, to advance the science and understanding around natural gas, including by:

(i) Providing a unified federal government strategy for both basic and advanced research projects concerning the extraction, use, and environmental impacts of natural gas;

(ii) Developing cleaner and more effective gas-based power plant technologies, methods to reduce incidental methane leakage, and other emissions mitigation, emissions quantification, and modular natural gas conversion technologies;

(iii) Researching new uses for natural gas, including using the constituent molecules for other commercials, manufacturing, and refining processes; 

(iv) Via cost-shared partnerships between the government and industry, developing and demonstrating advanced iterations of such technologies at a commercial scale; and, 

(v) Researching and developing technologies to reduce the environmental impact of produced water and opportunities to reprocess produced water at natural gas or oil development sites.

c. The federal government shall establish a pre-permitting process to identify suitable sites for natural gas pipelines in advance, in a manner that minimizes environmental risk and disruption to local and tribal communities.

SECTION 6. REGULATORY PROCESS IMPROVEMENT AND FUNDING SUPPORT.

a. To improve regulatory access for renewable energy projects:

(i) Within a year of this legislation's enactment, the federal government shall issue regulations creating a new scheme that allows for expedited approval of renewable energy projects on reclaimed mine land, including, where possible, developing a pre-approval process;

(ii) The federal government shall develop a process of pre-approving rights, to then be auctioned off, for renewable energy developments such as wind and solar on federal land sites identified as especially appropriate for future development, as well as pre-permitting areas where initial interest or investment has already occurred; and,

(iii) The federal government shall seek to, over the next decade, establish a target of doubling the renewable energy production on federal land, and quadrupling wind and solar production. An interagency office shall be established to ensure the relevant coordination in permitting and investment to achieve this goal.

b. All federal permitting, licencing, and project approval processes, including but not limited to energy development and infrastructure projects, shall be governed in accordance with a permittees' bill of rights, giving permittees the right to:

(i) Full notification and justification of any delays that extend beyond the initially agreed upon deadline;

(ii) Full assistance and prompt response to any queries or concerns they may raise;

(iii) Clear and concise expression of fee schedules, expected stakeholders and concerns to be consulted and explored in the permitting process, and expected deadlines;

(iv) Clear and concise expression of any deficiencies in an application that led to a rejection;

(v) A target of two years for all approvals; and,

(vi) Transparent and unbiased decisions made in accordance with the law and associated regulations.

c. To encourage more cooperative approaches to public lands rights:

(i) Agencies involved in permitting and approval shall cooperate to create a new process whereby energy developers and groups that aim to oppose their proposals, such as environmental groups, have a forum through which to agree collaborative and cooperative agreements about land use; 

(ii) To support such agreements, federal leasing rules shall allow contracts to be made between energy developers and conservationists, and reform environmental review processes to allow direct negotiation; and,

(iii) Open energy auctions shall be opened to recreational, conservation, and environmental interests. 

d. To unleash energy development in tribal communities and on reservation lands and improve the overall standard of governance: 

(i) Tribal Energy Resource Agreements, as created by the Energy Policy Act, shall be amended to require the federal government to provide equitable access to transmission grids for participating tribes, and the federal government shall conduct a review to urgently simplify and streamline the process, and have the authority to implement the results of such reviews, to ensure TERAs are an effective alternative for tribes; 

(ii) Tribal communities shall have a right under federal law to export energy products developed on their land, and the federal government shall ensure at least one reasonable export route is available if state and local regulations in other jurisdictions close off all otherwise-economically viable routes; 

(iii) ‘One-stop shops’, streamlining energy approval and permitting processes, shall be created on request for every tribal government that formally requests one; 

(iv) Individual Indian mineral owners shall be allowed to negotiate TERA agreements and agreements under the Indian Mineral Development Act; 

(v) The $6,500 fee assessed by the Bureau of Land Management for processing each application to drill on Indian lands is hereby repealed; 

(vi) The HEARTH Act is hereby enacted, and applied to traditional forms of subsurface energy development; 

(vii) The Tribal Law and Order Act is hereby enacted, funded at an inflation-adjusted $50 million per year;

(viii) The Department of the Interior shall consult with tribes on creating a Native American Property Ownership Initiative, giving reservation residents opportunities to hold, if their community chooses to participate in the Initiative, full legal titles to land while remaining under tribal jurisdiction; and, 

(ix) Tribes who wish to do so will be able to substitute BIA oversight over natural resources with their own processes, provided such processes meet at least minimum federal standards. 

SECTION 7. AMERICAN ENERGY EXPORTS.

a. A new program for financing energy independence projects around the world shall be established, given $5 billion in initial seed funding and hereafter funded by returns on investments and profits. 

(i) Funded projects may include key energy infrastructure; electricity sector upgrades; energy efficiency programs; renewable energy projects; and climate change adaptation and mitigation practices. 

(ii) Eligible countries shall propose energy projects and the program shall select those that provide the most potential in terms of supporting energy independence, reducing the power of hostile states and petro-dictators, and advancing clean and sustainable energy goals. 

(iii) A pre-determined GDP level shall be set by the program’s board. Countries above this level will receive low-interest loans, while those below that level will receive grants or matching grants, utilizing an income-based sliding scale. For multi-country projects, the lowest GDP level will be used.

b. To support the export of US energy to countries abroad to assist in diversifying the energy sources of US allies and reduce reliance on energy exports from hostile states:

(i) The program described in subsection a shall also be able to provide, additionally, $500 million in loan guarantees to create liquid natural gas import terminals abroad to facilitate US gas imports;

(ii) Restrictions on using export finance and development finance to support nuclear energy exports are hereby lifted, and the US shall use its influence to try to repeal such restrictions within the World Bank; 

(iii) The Department of Energy shall produce a standardized process, with targets for review durations, for nuclear energy exports, maintaining security provisions; 

c. The Nuclear Energy Leadership Act is hereby enacted into law, and fully funded (with clerical fixes to the dates). 

d. The Energy Sector Innovation Credit Act is hereby enacted into law (with clerical fixes to the dates).

3. The New Manhattan Project for Energy Independence, fully funded, is hereby enacted into law, establishing a prize program for goals that can achieve energy independence. (with clerical fixes to the dates).

4. The Energy Security and Independence Act of 2021 is hereby enacted into law (with clerical fixes to the dates).

5. The Rare Earth Element Advanced Coal Technologies Act fully funded, is hereby enacted into law, establishing a prize program for goals that can achieve energy independence. (with clerical fixes to the dates).

 SEC. 8. BUY AMERICA REQUIREMENTS.

(a) In General.—For all goods and materials an entity purchases in whole or in part with funds provided by this Act, the entity shall be required to comply with, and ensure compliance by all contractors, subcontractors, and suppliers of contractors of, the domestic content provisions of the section 5323(j) of title 49, United States Code, and all applicable Federal labor and employment laws.

(b) Inclusive Procurement Policies.—Notwithstanding any federal laws or regulations to the contrary, the entity may adhere to an inclusive procurement policy for all goods and materials that are part of any project funded in whole or in part by this Act that includes any of the following:

(1) Greater domestic content than is required by Federal law.

(2) A disclosure and evaluation of the embedded carbon emissions of all industrial products.

(3) Requirements for disclosure by the contractors, subcontractors, and suppliers of contractors of—

(A) wages and benefits of employees of the contractor, subcontractor, and suppliers;

(B) training program commitments for employees and potential employees; and

(C) targeted hiring commitments for members of disadvantaged communities, including veterans, women, low-income populations, and formerly incarcerated individuals.

(4) Job quality evaluation and incentives.

(5) Job quality commitment enforcement, including contract enforcement provisions for adherence to job quality commitments.

(6) Transparency to the public of job quality commitments and adherence to such commitments.

COORDINATION WITH STATE-LEVEL ECONOMIC DEVELOPMENT ORGANIZATIONS.

Not later than 180 days after the date of the enactment of this Act, the Executive Director of SelectUSA shall solicit comments from State-level economic development organizations—

(1) to review—

(A) what efforts the Federal Government can take to support increased foreign direct investment in any segment of semiconductor-related production;

(B) what barriers to such investment may exist and how to amplify State efforts to attract such investment;

(C) public opportunities those organizations have identified to attract foreign direct investment to help increase investment described in subparagraph (A);

(D) resource gaps or other challenges that prevent those organizations from increasing such investment; and

(2) to develop recommendations for—

(A) how SelectUSA can increase such investment independently or through partnership with those organizations; and

(B) working with countries that are allies or partners of the United States to ensure that foreign adversaries (as defined in section 8(c)(2) of the Secure and Trusted Communications Networks Act of 2019 (47 U.S.C. 1607(c)(2))) do not benefit from United States efforts to increase such investment.

REPORT ON INCREASING FOREIGN DIRECT INVESTMENT IN SEMICONDUCTOR-RELATED MANUFACTURING AND PRODUCTION.

Not later than 2 years after the date of the enactment of this Act, the Executive Director of SelectUSA, in coordination with the Federal Interagency Investment Working Group established by Executive Order 13577 (76 Fed. Reg. 35,715; relating to establishment of the SelectUSA Initiative), shall submit to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Energy and Commerce of the House of Representatives a report that includes—

(1) a review of the comments SelectUSA received from State-level economic development organizations under section 4;

(2) a description of activities SelectUSA is engaged in to increase foreign direct investment in semiconductor-related manufacturing and production; and

(3) an assessment of strategies SelectUSA may implement to achieve an increase in such investment and to help secure the United States supply chain for semiconductors, including by—

   (A) working with other relevant Federal agencies; and

   (B) working with State-level economic development organizations and implementing any strategies or recommendations SelectUSA received from those organizations.

SEC. 9. ENERGY EFFICIENT CARS

Electric Vehicle Charging Stations.--

   ``(1) Standards.--Electric vehicle charging infrastructure installed using funds provided under this title shall provide, at a minimum--

 ``(A) non-proprietary charging connectors that meet applicable industry safety standards; and

 ``(B) open access to payment methods that are available to all members of the public to ensure secure, convenient, and equal access to the electric vehicle charging infrastructure that shall not be limited by  membership to a particular payment provider.

 ``(2) Treatment of projects.--Notwithstanding any other provision of law, a project to install electric vehicle charging infrastructure using funds provided under this title shall be  treated as if the project is located on a Federal-aid highway.''.

SEC. 11. Hydroelectric Modernization and Expansion

Funding Allocation for Aging Federal Dams 

 Funding Authorization:

 $10 billion is authorized for fiscal years 2026-2031 for the modernization and rehabilitation of federally-owned hydroelectric dams aged 80 years or older.

Funds may be used for structural repairs, turbine replacements, dam safety upgrades, sediment management, and compliance with environmental standards.

Eligibility:

        Priority will be given to dams that:

        a. Have a history of safety concerns or operational inefficiencies.

        b. Are located in regions with high renewable energy demands.

        c. Serve critical purposes such as flood control, irrigation, and electricity generation.

Grant Administration:

        The Department of Energy (DOE), in consultation with the Army Corps of Engineers and the Bureau of Reclamation, will administer grants to agencies responsible for federally-owned dams.

National Hydroelectric Expansion Program

 Development Grants:

        $5 billion is authorized for fiscal years 2026-2031 to fund grants for:

        a. Construction of new hydroelectric facilities at existing non-powered dams.

        b. Upgrades to privately-owned hydroelectric plants to improve efficiency and safety.

        c. Feasibility studies for small-scale hydroelectric projects in underserved or rural areas.

Incentives for Innovation:

        $1 billion is allocated to support research and development in hydroelectric technology, including:

        a. Fish-friendly turbines.

        b. Advanced sediment management techniques.

        c. Grid integration technologies for hydroelectric power.

Environmental and Community Impact

Environmental Compliance:

        Projects funded under this Act must comply with the Clean Water Act, Endangered Species Act, and other applicable environmental laws.

Community Engagement:

        The DOE will require public hearings and community input before approving modernization or new development projects.

 Reporting Requirements

Annual Report to Congress:

        The DOE will submit an annual report to Congress detailing:

        a. The status of federally-owned dam modernization projects.

        b. Progress on new hydroelectric development.

        c. The environmental and economic impact of funded projects.

Oversight Committee:

        A bipartisan Congressional committee will be established to oversee the implementation of this Act and ensure accountability and transparency.

Funding Source 

The funding authorized under this Act will be sourced from the Green Energy Infrastructure Fund established under the Inflation Reduction Act of 2022.

    If additional funds are required, Congress may consider issuing renewable energy bonds to raise capital.

SEC 12. Geothermal Energy Optimization

The Geothermal Energy Optimization Act is hereby enacted providing Geothermal Observation Test Projects as well as leasing improvements, permitting enhancements, and the creation of a Geothermal Ombudsman and Strike Team

SEC 13. Hydropower Clean Energy Future

The Hydropower Clean Energy Future Act is hereby enacted into law (with clerical fixes to the dates where necessary)

SECTION 14. Hydrogen Innovation and Infrastructure Initiative

(a) The Hydrogen Infrastructure Finance and Innovation Act is hereby enacted, with all dates modified as necessary and funding appropriated for $50,000,000 for each of fiscal years 2023 through 2026. 

(b) The Hydrogen for Trucks Act is hereby enacted, with all dates modified as necessary and funding appropriated for $50,000,000 for each of fiscal years 2023 through 2026. 

(c) The Hydrogen for Industry Act is hereby enacted, with all dates modified as necessary and funding of $1.2 billion appropriated for the period of fiscal years 2023 through 2026, which shall remain available until expended.

SECTION 15.Energy One

SEC. 4a. INVESTMENT TAX CREDIT FOR BIOMASS HEATING PROPERTY.

(a) In General.—Section 48(a)(3)(A) of the Internal Revenue Code of 1986 is amended—

(1) by striking “or” at the end of clause (vii),

(2) by adding “or” at the end of clause (viii), and

(3) and by inserting after clause (viii) the following new clause:

“(ix) open-loop biomass heating property (within the meaning of section 45(c)(3)) heating property, including boilers or furnaces that operate at thermal output efficiencies of not less than 75 percent (measured by the lower heating value of the fuel at nominal output), that are installed indoors, and that provide thermal energy in the form of heat, hot water, or steam for space heating, air conditioning, domestic hot water, or industrial process heat,”.

(b) Open-Loop Biomass Heating Property Defined.—Section 48(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

“(6) OPEN-LOOP BIOMASS HEATING PROPERTY.—

“(A) IN GENERAL.—The term ‘open-loop biomass heating property’ means any property which—

“(i) uses open-loop biomass (as defined in section 45(c)(3)) to produce thermal energy in the form of heat, hot water, hot air, or steam, and

“(ii) is used for space heating, air conditioning, domestic hot water, industrial process heat, or any combination of the foregoing.

“(B) REQUIREMENTS FOR BOILERS AND FURNACES.—Such term shall not include any boiler or furnace unless such boiler or furnace—

“(i) operates at thermal output efficiencies of not less than 75 percent (measured by the lower heating value of the fuel at nominal output), and

“(ii) is installed indoors.”.

(c) ENERGY- Percentage.—Section 48(a)(2)(A)(i) of such Code is amended—

(1) by striking “and” at the end of subclause (IV), and

(2) by adding at the end the following new subclause:

“(VI) open-loop biomass heating property, but only with respect to property the construction of which begins before January 1, 2023, and”.

(d) Effective Date.—The amendments made by this section shall apply to periods after December 31, 2021, in taxable years ending after such date, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).

SEC. 4b. EXTENSION OF RESIDENTIAL ENERGY EFFICIENT PROPERTY CREDIT.

(a) In General.—Section 25D(h) of the Internal Revenue Code of 1986 is amended by striking “December 31, 2023” and inserting “December 31, 2028”.

(b) Application Of Phaseout.—Section 25D(g) of such Code is amended—

(1) by striking “before January 1, 2023” in paragraph (2) and inserting “before January 1, 2022”,

(2) by striking “and” at the end of paragraph (2),

(3) by redesignating paragraph (3) as paragraph (5) and by inserting after paragraph (2) the following new paragraphs:

“(3) in the case of property placed in service after December 31, 2021, and before January 1, 2027, 30 percent,

“(4) in the case of property placed in service after December 31, 2026, and before January 1, 2028, 26 percent, and”, and

(4) by striking “December 31, 2022, and before January 1, 2024” in paragraph (5) (as so redesignated) and inserting “December 31, 2027, and before January 1, 2029”.

(c) Effective Date.—The amendments made by this section shall apply to expenditures made after the date of the enactment of this Act.

SEC. 16. STRENGTHENING NORTH AMERICAN ENERGY SECURITY.

(a) Authorization Of Certain Energy Infrastructure Projects At An International Boundary Of The United States.—

(1) AUTHORIZATION.—Except as provided in paragraph (3) and subsection (e), no person may construct, connect, operate, or maintain a border-crossing facility for the import or export of oil or natural gas, or the transmission of electricity, across an international border of the United States without obtaining a certificate of crossing for the border-crossing facility under this subsection.

(2) CERTIFICATE OF CROSSING.—

(A) REQUIREMENT.—Not later than 120 days after final action is taken, by the relevant official or agency identified under subparagraph (B), under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) with respect to a border-crossing facility for which a person requests a certificate of crossing under this subsection, the relevant official or agency, in consultation with appropriate Federal agencies, shall issue a certificate of crossing for the border-crossing facility unless the relevant official or agency finds that the construction, connection, operation, or maintenance of the border-crossing facility is not in the public interest of the United States.

(B) RELEVANT OFFICIAL OR AGENCY.—The relevant official or agency referred to in subparagraph (A) is—

(i) the Federal Energy Regulatory Commission with respect to border-crossing facilities consisting of oil or natural gas pipelines; and

(ii) the Secretary of Energy with respect to border-crossing facilities consisting of electric transmission facilities.

(C) ADDITIONAL REQUIREMENT FOR ELECTRIC TRANSMISSION FACILITIES.—In the case of a request for a certificate of crossing for a border-crossing facility consisting of an electric transmission facility, the Secretary of Energy shall require, as a condition of issuing the certificate of crossing under subparagraph (A), that the border-crossing facility 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 border-crossing facility.

(3) EXCLUSIONS.—This subsection shall not apply to any construction, connection, operation, or maintenance of a border-crossing facility for the import or export of oil or natural gas, or the transmission of electricity—

(A) if the border-crossing facility is operating for such import, export, or transmission as of the date of enactment of this Act;

(B) if a permit described in subsection (d) for the construction, connection, operation, or maintenance has been issued; or

(C) if an application for a permit described in subsection (d) for the construction, connection, operation, or maintenance is pending on the date of enactment of this Act, until the earlier of—

(i) the date on which such application is denied; or

(ii) two years after the date of enactment of this Act, if such a permit has not been issued by such date of enactment.

(4) EFFECT OF OTHER LAWS.—

(A) APPLICATION TO PROJECTS.—Nothing in this subsection or subsection (e) shall affect the application of any other Federal statute to a project for which a certificate of crossing for a border-crossing facility is requested under this subsection.

(B) NATURAL GAS ACT.—Nothing in this subsection or subsection (e) shall affect the requirement to obtain approval or authorization under sections 3 and 7 of the Natural Gas Act for the siting, construction, or operation of any facility to import or export natural gas.

(C) OIL PIPELINES.—Nothing in this subsection or subsection (e) shall affect the authority of the Federal Energy Regulatory Commission with respect to oil pipelines under section 60502 of title 49, United States Code.

(b) 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 of natural gas from, or the exportation of natural gas to, Canada or Mexico, the Commission shall grant the application not later than 30 days after the date on which the Commission receives the complete application.”.

(c) 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.”.

(d) No Presidential Permit Required.—No Presidential permit (or similar permit) required under Executive Order No. 13337 (3 U.S.C. 301 note), Executive Order No. 11423 (3 U.S.C. 301 note), section 301 of title 3, United States Code, Executive Order No. 12038, Executive Order No. 10485, or any other Executive order shall be necessary for the construction, connection, operation, or maintenance of an oil or natural gas pipeline or electric transmission facility, or any border-crossing facility thereof.

(e) Modifications To Existing Projects.—No certificate of crossing under subsection (a), or permit described in subsection (d), shall be required for a modification to—

(1) an oil or natural gas pipeline or electric transmission facility that is operating for the import or export of oil or natural gas or the transmission of electricity as of the date of enactment of this Act;

(2) an oil or natural gas pipeline or electric transmission facility for which a permit described in subsection (d) has been issued; or

(3) a border-crossing facility for which a certificate of crossing has previously been issued under subsection (a).

(f) Effective Date; Rulemaking Deadlines.—

(1) EFFECTIVE DATE.—Subsections (a) through (e), and the amendments made by such subsections, shall take effect on the date that is 1 year after the date of enactment of this Act.

(2) RULEMAKING DEADLINES.—Each relevant official or agency described in subsection (a)(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 (a); 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 (a).

(g) Definitions.—In this section—

(1) the term “border-crossing facility” means the portion of an oil or natural gas pipeline or electric transmission facility that is located at an international boundary of the United States;

(2) the term “modification” includes a reversal of flow direction, change in ownership, change in flow volume, addition or removal of an interconnection, or an adjustment to maintain flow (such as a reduction or increase in the number of pump or compressor stations);

(3) the term “natural gas” has the meaning given that term in section 2 of the Natural Gas Act (15 U.S.C. 717a);

(4) the term “oil” means petroleum or a petroleum product;

(5) 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); and

(6) 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).

Section.17. Reshoring Energy Grid

The Facilitating the Reshoring of Energy Grid Component Manufacturing Act of 2021 is hereby enacted into law, and fully funded (with clerical fixes to the dates). 

hereby enacted into law, and fully funded (with clerical fixes to the dates). 

 

[Brink]

This legislation passed the House 221-212.

Edited December 24, 2024 by Brink