Lower Energy Costs Act

What H.R. 1 does, in plain terms

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 counties of Klamath, Jackson, Douglas, and Coos of Oregon. (Sec. 10008) This section repeals certain restrictions on the import and export of natural gas under the Natural Gas Act, including (1) a requirement that FERC authorize an order to export or import natural gas only if it is in the public interest, and (2) restrictions related to free trade agreements. This section grants FERC the exclusive authority to approve or deny applications for the siting, construction, expansion, or operation of facilities to export natural gas to foreign countries or import natural gas from foreign countries. (Sec. 10009) This section expands FERC's role in conducting environmental reviews of applications for natural gas pipelines under the Natural Gas Act. Specifically, this section makes FERC the sole lead agency for the purpose of coordinating the environmental review of such pipelines under the National Environmental Policy Act of 1969 (NEPA). Thus, federal, state, and local agencies involved in the environmental review process must defer to FERC's approved scope for a NEPA review. FERC must designate the other participating agencies involved in the authorization process. This section limits the environmental review that may be conducted by agencies that are not designated as participants. This section also expedites environmental review of such projects. Specifically, agencies must complete NEPA reviews of pipeline projects by the deadlines established in this section. If a federal or state agency requires the person applying for a pipeline authorization to submit data, then the agency must consider any such data gathered by aerial or other remote means that the person submits. In addition, this section withdraws the following policy statements: (1) Certification of New Interstate Natural Gas Facilities published on March 1, 2022; and (2) Consideration of Greenhouse Gas Emissions in Natural Gas Infrastructure Project Reviews published on March 11, 2022. Finally, this section replaces the water quality certification process under Section 401 of the Clean Water Act with the NEPA process led by FERC for an interstate natural gas pipeline or liquefied natural gas project. (Sec. 10010) This section gives a facility that processes or refines a critical energy resource an interim status permit under the Resource Conservation and Recovery Act until (1) the final administrative disposition of its permit application, or (2) it is proven that the facility failed to provide information needed to process the permit application. (Sec. 10011) This section requires the Environmental Protection Agency (EPA) to allow critical energy resource facilities to utilize flexible air permitting. Specifically, the section requires the EPA to revise regulations issued under the Clean Air Act to authorize owners or operators of critical energy resource facilities to utilize flexible air permitting, as described in the final rule titled Operating Permit Programs; Flexible Air Permitting Rule published on October 6, 2009. Flexible air permits contain approaches that allow the source to make operational plans and obtain approval for anticipated types of changes to those plans without subsequent review of the changes when they occur. This section also requires the regulations to facilitate flexible, market-responsive operations (as described in the final rule) with respect to critical energy resource facilities. (Sec. 10012) If the EPA determines that the processing or refining of a critical energy resource at a critical energy resource facility is necessary to meet U.S. security or energy security needs, then the EPA may issue a temporary waiver of any requirement under the Clean Air Act or the Solid Waste Disposal Act with respect to the facility to meet such needs. Further, the EPA may issue such waiver with or without notice, hearing, or other report. (Sec. 10013) This section revises the EPA's review under the Toxic Substance Control Act (TSCA) of the risks presented by chemical substances to human health or the environment. Specifically, the section establishes requirements to expedite the review of chemical substances that are considered to be critical energy resources. Currently, TSCA requires manufacturers and processors of chemical substances to notify the EPA before manufacturing a new chemical substance or before manufacturing or processing a substance for a significant new use. The EPA must review such notices and provide a determination on whether the substance or significant new use present an unreasonable risk. This section requires the EPA, when making a determination for a chemical substance that is a critical energy resource, to also consider economic, societal, and environmental costs and benefits. If the EPA fails to make a determination by the end of the applicable review period and the submitter has not withdrawn the notice, the submitter may then proceed in manufacturing or processing the substance. The EPA may only suggest the withdrawal of a notice for a chemical substance that is a critical energy resource, or request a suspension of the review period, if the EPA has conducted a preliminary review of the notice and provided a draft of determination to the submitter. (Sec. 10014) This section eliminates a program administered by the EPA that provides incentives for petroleum and natural gas systems to reduce their emissions of methane and other greenhouse gases. It also repeals a charge on methane emissions from specific types of facilities that are required to report their greenhouse gas emissions to the EPA's Greenhouse Gas Emissions Reporting Program. (Sec. 10015) The Greenhouse Gas Reduction Fund is also repealed. This fund provides financial and technical assistance to states and other eligible recipients to help enable low-income and disadvantaged communities carry out activities to reduce greenhouse gas emissions. (Sec. 10016) This section revises the EPA's Risk Management program to exempt a petroleum (e.g., gasoline) refinery that uses a hydrofluoric acid alkylation unit from certain hazard assessment requirements. Petroleum refineries use the acid during the gasoline production process. Hydrofluoric acid is hazardous and corrosive. If it is accidently released, it can form a toxic vapor cloud. Currently, petroleum refineries are required to include in a hazard assessment an evaluation of safer technology and alternative risk management measures for a hydrofluoric acid alkylation unit. This section eliminates that requirement if the petroleum refinery (1) has obtained a construction permit or operating permit under the program, or (2) demonstrates that it will conform to the most recent version of American Petroleum Institute Recommended Practice 751. This practice provides guidance on the safe operation of such a unit. (Sec. 10017) This section repeals provisions of the Deficit Reduction Act of 2022 relating to (1) the high-efficiency electric home rebate program, (2) state-based home energy efficiency contractor training grants, and (3) assistance for latest and zero building energy code adoption. It also rescinds any unobligated balances available for such programs. (Sec. 10018) DOE must conduct a study on how to streamline regulatory timelines relating to developing new power plants. In the study, DOE must examine practices relating to various power generating sources, including fossil and nuclear generating sources. (Sec. 10019) This section sets forth requirements to expedite the application review for a state to assume the responsibility (i.e., obtain primacy) from the EPA to implement underground injection control programs under the Safe Drinking Water Act. The existing review process includes requiring the applicant to prevent contamination of underground sources of drinking water from the placement of fluids underground through injection wells. The program consists of six classes of wells that are injected with

Official summary by the Congressional Research Service, via Congress.gov.