SB.8: Defending American Energy Independence Act

[Brink]

 

IN THE SENATE OF THE UNITED STATES

Mrs. ASHCROFT of NORTH CAROLINA, for herself and others, introduces

A BILL

To promote American energy independence by prioritizing domestic energy production, reducing reliance on foreign energy, and ensuring affordable energy access for all Americans.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

 

SECTION 1. SHORT TITLE.
This Act may be cited as the "Defending American Energy Independence Act."

SEC. 2. FINDINGS.
Congress finds the following:

1. American energy independence is critical for national security and economic stability.
2. Increasing domestic energy production will reduce reliance on foreign energy sources.
3. Investing in a diverse energy portfolio, including oil, gas, coal, and nuclear energy, ensures long-term energy affordability and reliability.

SEC. 3. PROMOTING DOMESTIC ENERGY PRODUCTION.
(a) Offshore Energy Production.
(1) The Secretary of the Interior shall expedite permitting for offshore oil and gas exploration and production by:

• Prioritizing applications from U.S.-based companies.
• Establishing a streamlined approval process that reduces average permit processing times to 180 days.
• Allocating $200 million for geological surveys to identify high-potential offshore drilling areas.

(2) Lease sales for energy development shall include incentives, such as reduced royalties, for companies committing to employ 75% or more U.S. citizens for operations.
(3) Nothing in this section shall be construed to override existing state laws with respect to offshore energy production.

(b) Onshore Drilling.
(1) Federal lands identified by the Department of the Interior as having proven oil and gas reserves shall be opened for leasing within 90 days of this Act’s enactment.
(2) A 10-year tax holiday on federal land leases will be granted to companies that produce a minimum of 500,000 barrels of oil or equivalent within the first year of operations.

(c) Nuclear Energy Expansion.
(1) Federal grants of $500 million $2 billion annually shall fund the development of small modular nuclear reactors (SMRs) through public-private partnerships.
(2) The Nuclear Regulatory Commission shall establish a fast-track approval process, reducing approval timelines by 50% without compromising safety standards.

(d) Promotion of Geothermal Energy.
(a) The Geothermal Energy Optimization Act is enacted

(e) Promotion of Hydroelectric Power.
(a) The Hydropower Clean Energy Future Act and the Hydroelectric Modernization and Expansion Act of 2026 are enacted.

(f) Labor Standards for Federal Support Recipients.—
(1) No company shall be eligible for any tax credit, grant, or other incentive provided under this Act unless the company:
(A) utilizes labor that is covered under a collective bargaining agreement or equivalent union protections;
(B) pays prevailing wages as determined by the Secretary of Labor; and
(C) provides its employees with safe working conditions, including compliance with all applicable workplace safety regulations and standards.

(2) The Secretary of Energy, in consultation with the Secretary of Labor, shall issue regulations to ensure compliance with this subsection, including penalties for noncompliance.

SEC. 4. INCENTIVES FOR ENERGY COMPANIES.
(a) Tax Credits for Domestic Production.
(1) Energy companies increasing domestic production by at least 10% annually shall qualify for a 20% federal corporate tax credit.
(2) An additional 10% tax credit shall be available to companies investing in economically distressed regions, with priority given to rural areas and former coal-dependent communities.

(b) Penalties for Outsourcing.
(1) Energy companies shifting production to foreign countries shall face a 15% tax increase on profits derived from the importation of foreign-produced energy.
(2) The Department of Energy shall publish an annual report highlighting companies penalized under this provision.

(c) Allocation to Green Transition Fund.—
(1) Notwithstanding any other provision of this Act, 50 percent of all revenue generated or saved as a result of the tax credits, royalty reductions, or other financial incentives provided under this Act shall be deposited into a Green Transition Fund, which is hereby established in the Treasury of the United States.

(2) Funds deposited into the Green Transition Fund shall be used exclusively for:
(A) investments in renewable energy technologies, including but not limited to wind, solar, geothermal, and battery storage;
(B) retraining programs for fossil fuel workers to transition into clean energy jobs; and
(C) grants to state and local governments for public infrastructure upgrades that improve energy efficiency or reduce greenhouse gas emissions.

(3) The Secretary of Energy shall administer the Green Transition Fund and ensure that at least 40 percent of all investments directly benefit economically distressed communities.

(d) Public Energy Dividend Program.—
(1) Beginning in fiscal year 2026, the Secretary of the Treasury shall establish and administer a Public Energy Dividend Program.

(2) Not less than 25 percent of all royalties collected from fossil fuel extraction on public lands and offshore waters shall be distributed annually to American households in the form of a Public Energy Dividend.

(3) The Secretary of the Treasury shall prioritize low- and middle-income households for dividend payments and adjust annual distributions to account for inflation and rising energy costs.

(4) Nothing in this subsection shall preclude the Department of the Interior from collecting and utilizing royalties to ensure environmental restoration and compliance with federal standards.

SEC. 5. REDUCING RELIANCE ON FOREIGN ENERGY.
(a) Import Restrictions.
(1) The importation of crude oil, natural gas, and other energy products from adversarial nations, including China, Russia, and Iran, shall be prohibited.
(2) To facilitate the transition, the Department of Energy will:

• Establish strategic partnerships with allied nations for energy imports.
• Offer subsidies to domestic companies capable of offsetting imports through increased production.

(b) Strategic Petroleum Reserve (SPR).
(1) Releases from the SPR must be used exclusively to stabilize fuel prices during emergencies such as natural disasters or supply chain disruptions.
(2) All SPR releases must include a detailed replenishment plan to restore reserves within 12 months, using domestic energy sources.

SEC. 6. PROTECTING ENERGY INFRASTRUCTURE.
(a) Cybersecurity Measures.
(1) The Department of Energy shall allocate $1 billion annually for grants to energy companies to enhance cybersecurity for critical infrastructure, such as pipelines and power grids.
(2) The Department of Homeland Security, in coordination with the Department of Energy, shall develop a nationwide framework for responding to cyberattacks on energy systems.

(b) Resiliency Upgrades.
(1) Grants of up to $10 million per project shall be available for energy companies upgrading aging pipelines, refineries, and power plants to meet modern safety and efficiency standards.
(2) Priority will be given to projects reducing vulnerability to natural disasters and improving environmental compliance.

SEC. 7. ENVIRONMENTAL STANDARDS.
(a) Streamlined Reviews.
(1) Environmental reviews for energy projects under the National Environmental Policy Act (NEPA) shall have a maximum review period of 12 months.
(2) States may apply for waivers to conduct NEPA reviews independently, provided they meet federal guidelines.

(b) Carbon Emission Benchmarks for Domestic Energy Production.—
(1) No company shall qualify for any tax credit, grant, or other financial incentive under this Act unless the company submits a plan to the Environmental Protection Agency (EPA) demonstrating compliance with the following carbon emission benchmarks:
(A) A 50 percent reduction in greenhouse gas emissions (as defined under Section 115 of the Clean Air Act) by 2030 compared to 2005 levels.
(B) A 100 percent reduction in greenhouse gas emissions (net zero) by 2050 compared to 2005 levels.

(2) Companies receiving incentives must file annual progress reports with the EPA, and any company failing to meet these benchmarks shall be subject to:
(A) revocation of all federal benefits under this Act; and
(B) a fine equal to 150 percent of the total federal financial incentives received under this Act.

(3) The EPA Administrator shall ensure that all carbon reduction plans submitted under this subsection are publicly available for review.

SEC. 8. AUTHORIZATION OF APPROPRIATIONS.
(a) $3 billion is authorized for fiscal years 2025-2028 to implement the provisions of this Act, including cybersecurity measures, resiliency upgrades, and energy innovation grants.

SEC. 9. DEFINITIONS.
For the purposes of this Act:
(1) Adversarial Nations refers to countries identified by the Secretary of State as posing significant security threats to the United States.
(2) Small Modular Reactors refers to nuclear reactors with a capacity of less than 300 megawatts designed for small-scale, flexible deployment.
(3) Economically Distressed Regions are areas with an unemployment rate exceeding the national average by 50% or more.

SEC. 10. INCENTIVES FOR CONSUMERS
(a) Gasoline Tax Holiday
(1) The sale of taxable fuel, including gasoline, diesel fuel, and kerosene to consumers shall be exempt beginning from the enactment of this Act through January 1, 2027.
(2) This exemption does not apply to any stage of production other than the final downstream point of sale transaction directly to retail consumers.
(3) The Secretary of the Treasury may use all applicable authorities to ensure that the benefit of the reduction in taxes resulting from this section is received by consumers.

(b) Maintaining Highway Trust Fund
(1) The Secretary of the Treasury shall transfer from the general fund to the Highway Trust Fund an amount equivalent to the estimated revenue that would have otherwise been generated from the taxes exempted by this Act.

SEC. 11, 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 2027 and at least an additional 30MT by 2030;
(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.

(g) 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. 

SEC. 12, 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.

SEC. 13. HYDROELECTRIC MODERNIZATION AND EXPANSION.

(a) Funding Allocation for Aging Federal Dams 

(1) Funding Authorization:

• (A) $10 billion is authorized for fiscal years 2026-2031 for the modernization and rehabilitation of federally-owned hydroelectric dams aged 80 years or older.
• (B) Funds may be used for structural repairs, turbine replacements, dam safety upgrades, sediment management, and compliance with environmental standards.

(2) Eligibility:

(A) Priority will be given to dams that:

• Have a history of safety concerns or operational inefficiencies.
• Are located in regions with high renewable energy demands.
• Serve critical purposes such as flood control, irrigation, and electricity generation.

(3) Grant Administration:

(A) 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.

(b) National Hydroelectric Expansion Program

(a) Development Grants:

(1) $5 billion is authorized for fiscal years 2026-2032 to fund grants for:

• Construction of new hydroelectric facilities at existing non-powered dams.
• Upgrades to privately-owned hydroelectric plants to improve efficiency and safety.
• Feasibility studies for small-scale hydroelectric projects in underserved or rural areas.

(b) Incentives for Innovation:

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

• Fish-friendly turbines.
• Advanced sediment management techniques.
• Grid integration technologies for hydroelectric power.

(c) Environmental and Community Impact

(a) Environmental Compliance:

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

(d) Community Engagement:

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

(e) Reporting Requirements

(a) Annual Report to Congress:

(1) The DOE will submit an annual report to Congress detailing:

• The status of federally-owned dam modernization projects.
• Progress on new hydroelectric development.
• The environmental and economic impact of funded projects.

(f) Oversight Committee:

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

(g) Funding Source 

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

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

SEC. 14 ENERGY ONE.

(A) 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).

(B) 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, 2026, and before January 1, 2032, 30 percent,
“(4) in the case of property placed in service after December 31, 2028, and before January 1, 2030, 26 percent, and”, and

(4) by striking “December 31, 2026, and before January 1, 2028” 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. 15. 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)

SEC. 16. EFFECTIVE DATE.

This Act shall take effect on the first day of the fiscal year following its enactment.

[Brink]

This legislation passed the Senate 89-11.