Lower Energy Costs Act

The Clerk was authorized to correct section numbers, punctuation, and cross references, and to make other necessary technical and conforming corrections in the engrossment of H.R. 1.

Mar 30, 2023

This division of the Lower Energy Costs Act establishes several requirements and authorities related to energy production and infrastructure. It directs the Department of Energy to assess critical energy resource supplies and develop strategies to strengthen supply chains, and requires the National Petroleum Council to report on U.S. petrochemical refineries and their capacity expansion. It prohibits the President from declaring a moratorium on hydraulic fracturing without Congressional authorization and creates a new federal permitting process for cross-border energy infrastructure (oil, natural gas, and electric transmission facilities) between the U.S. and Canada or Mexico, with deadlines for permit issuance and a requirement for Congressional approval before revoking cross-border permits. The bill also includes congressional expressions of disapproval regarding the revocation of the Keystone XL pipeline permit and Oregon's denial of permits for a liquefied natural gas export terminal and associated pipeline.

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Lower Energy Costs Act DIVISION A--INCREASING AMERICAN ENERGY PRODUCTION, EXPORTS, INFRASTRUCTURE, AND CRITICAL MINERALS PROCESSING (Sec. 10001) In carrying out the Department of Energy Organization Act, the Department of Energy (DOE) must assess the supply of critical energy resources that are essential to the energy security of the United States, facilitate the development of strategies to strengthen the supply chains for those resources, develop substitutes and alternatives to those resources, and improve technology that reuses and recycles critical energy resources. (Sec. 10002) This section prohibits the President from declaring a moratorium on the use of hydraulic fracturing unless Congress authorizes the moratorium. Hydraulic fracturing, or fracking, is a process to extract underground resources such as oil or gas from a geologic formation by injecting water, a propping agent (e.g., sand), and chemical additives into a well under enough pressure to fracture the formation. This section also expresses the sense of Congress that states should maintain primacy for the regulation of hydraulic fracturing for oil and natural gas production on state and private lands. (Sec. 10003) DOE must direct the National Petroleum Council to publish a report on petrochemical refineries located in the United States. The report must include information concerning (1) the contributions of such refineries to U.S. energy security, (2) a projection for expanding the capacities of the refineries, (3) any federal or state executive actions that have contributed to a decline in their capacities, and (4) any recommendations to increase such capacities. (Sec. 10004) This section establishes a new process for permitting the construction and operation of energy infrastructure across an international border of the United States. Thus, it replaces the existing process established under specified executive orders. This section requires a person to obtain a certificate of crossing before constructing, connecting, operating, or maintaining a border-crossing facility for the import or export of oil, natural gas, or electricity across a U.S. border between Canada or Mexico. A certificate must be obtained from (1) the Federal Energy Regulatory Commission (FERC) for a facility consisting of oil or natural gas pipelines, or (2) from DOE for an electric transmission facility. As a condition of obtaining a DOE certificate, an electric transmission facility must be constructed, connected, operated, or maintained in accordance with specified policies and standards. FERC and DOE must meet a deadline for issuing a certificate as set forth by this section. In addition, this section also requires the President to obtain the approval of Congress before revoking a permit issued under executive orders for constructing, connecting, operating, or maintaining an oil or natural gas pipeline, an electric transmission facility, or a border-crossing facility. (Sec. 10005) This section expresses congressional disapproval of the revocation of the presidential permit for the Keystone XL pipeline. The permit authorized the TransCanada Keystone Pipeline to construct, connect, operate, and maintain the pipeline facilities in Phillips County, Montana, for the import of oil from Canada to the United States. (Sec. 10006) This section expresses the sense of Congress that the federal government should not impose (1) overly restrictive regulations on the exploration, production, or marketing of energy resources; or (2) any restrictions on the export of crude oil or other petroleum products under the Energy Policy and Conservation Act, except with respect to petroleum exports to foreign persons or foreign governments subject to sanctions under U.S. law. (Sec. 10007) This section expresses congressional disapproval of Oregon's denial of permits and certifications necessary for (1) a new liquefied natural gas export terminal in Coos County, Oregon; and (2) the Pacific Connector Pipeline in the