15 U.S.C. § 717b — Exportation or importation of natural gas;

Page 1188 TITLE 15—COMMERCE AND TRADE § 717b 1 So in original. Probably should be ‘‘finds’’. 1992—Par. (10). Pub. L. 102–486 added par. (10). Statutory Notes and Related Subsidiaries TERMINATION OF FEDERAL POWER COMMISSION; TRANSFER OF FUNCTIONS The Federal Power Commission was terminated, and its functions, personnel, property, funds, etc., were transferred to the Secretary of Energy (except for cer- tain functions which were transferred to the Federal Energy Regulatory Commission) by sections 7151(b), 7171(a), 7172(a)(1), 7291, and 7293 of Title 42, The Public Health and Welfare. § 717b. Exportation or importation of natural gas; LNG terminals (a) Mandatory authorization order After six months from June 21, 1938, no person shall export any natural gas from the United States to a foreign country or import any nat- ural gas from a foreign country without first having secured an order of the Commission au- thorizing it to do so. The Commission shall issue such order upon application, unless, after oppor- tunity for hearing, it finds that the proposed ex- portation or importation will not be consistent with the public interest. The Commission may by its order grant such application, in whole or in part, with such modification and upon such terms and conditions as the Commission may find necessary or appropriate, and may from time to time, after opportunity for hearing, and for good cause shown, make such supplemental order in the premises as it may find necessary or appropriate. (b) Free trade agreements With respect to natural gas which is imported into the United States from a nation with which there is in effect a free trade agreement requir- ing national treatment for trade in natural gas, and with respect to liquefied natural gas— (1) the importation of such natural gas shall be treated as a ‘‘first sale’’ within the meaning of section 3301(21) of this title; and (2) the Commission shall not, on the basis of national origin, treat any such imported nat- ural gas on an unjust, unreasonable, unduly discriminatory, or preferential basis. (c) Expedited application and approval process For purposes of subsection (a), the importa- tion of the natural gas referred to in subsection (b), or the exportation of natural gas to a nation with which there is in effect a free trade agree- ment requiring national treatment for trade in natural gas, shall be deemed to be consistent with the public interest, and applications for such importation or exportation shall be grant- ed without modification or delay. (d) Construction with other laws Except as specifically provided in this chapter, nothing in this chapter affects the rights of States under— (1) the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq.); (2) the Clean Air Act (42 U.S.C. 7401 et seq.); or (3) the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.). (e) LNG terminals (1) The Commission shall have the exclusive authority to approve or deny an application for the siting, construction, expansion, or operation of an LNG terminal. Except as specifically pro- vided in this chapter, nothing in this chapter is intended to affect otherwise applicable law re- lated to any Federal agency’s authorities or re- sponsibilities related to LNG terminals. (2) Upon the filing of any application to site, construct, expand, or operate an LNG terminal, the Commission shall— (A) set the matter for hearing; (B) give reasonable notice of the hearing to all interested persons, including the State commission of the State in which the LNG ter- minal is located and, if not the same, the Gov- ernor-appointed State agency described in sec- tion 717b–1 of this title; (C) decide the matter in accordance with this subsection; and (D) issue or deny the appropriate order ac- cordingly. (3)(A) Except as provided in subparagraph (B), the Commission may approve an application de- scribed in paragraph (2), in whole or part, with such modifications and upon such terms and conditions as the Commission find 1 necessary or appropriate. (B) Before January 1, 2015, the Commission shall not— (i) deny an application solely on the basis that the applicant proposes to use the LNG terminal exclusively or partially for gas that the applicant or an affiliate of the applicant will supply to the facility; or (ii) condition an order on— (I) a requirement that the LNG terminal offer service to customers other than the ap- plicant, or any affiliate of the applicant, se- curing the order; (II) any regulation of the rates, charges, terms, or conditions of service of the LNG terminal; or (III) a requirement to file with the Com- mission schedules or contracts related to the rates, charges, terms, or conditions of serv- ice of the LNG terminal. (C) Subparagraph (B) shall cease to have effect on January 1, 2030. (4) An order issued for an LNG terminal that also offers service to customers on an open ac- cess basis shall not result in subsidization of ex- pansion capacity by existing customers, deg- radation of service to existing customers, or undue discrimination against existing cus- tomers as to their terms or conditions of service at the facility, as all of those terms are defined by the Commission. (f) Military installations (1) In this subsection, the term ‘‘military in- stallation’’— (A) means a base, camp, post, range, station, yard, center, or homeport facility for any ship or other activity under the jurisdiction of the Department of Defense, including any leased facility, that is located within a State, the District of Columbia, or any territory of the United States; and (B) does not include any facility used pri- marily for civil works, rivers and harbors Page 1189 TITLE 15—COMMERCE AND TRADE § 717b–1 2 So in original. Probably should be ‘‘coordinates and consults’’. projects, or flood control projects, as deter- mined by the Secretary of Defense. (2) The Commission shall enter into a memo- randum of understanding with the Secretary of Defense for the purpose of ensuring that the Commission coordinate and consult 2 with the Secretary of Defense on the siting, construction, expansion, or operation of liquefied natural gas facilities that may affect an active military in- stallation. (3) The Commission shall obtain the concur- rence of the Secretary of Defense before author- izing the siting, construction, expansion, or op- eration of liquefied natural gas facilities affect- ing the training or activities of an active mili- tary installation. (June 21, 1938, ch. 556, § 3, 52 Stat. 822; Pub. L. 102–486, title II, § 201, Oct. 24, 1992, 106 Stat. 2866; Pub. L. 109–58, title III, § 311(c), Aug. 8, 2005, 119 Stat. 685.) Editorial Notes REFERENCES IN TEXT The Coastal Zone Management Act of 1972, referred to in subsec. (d)(1), is title III of Pub. L. 89–454 as added by Pub. L. 92–583, Oct. 27, 1972, 86 Stat. 1280, which is clas- sified generally to chapter 33 (§ 1451 et seq.) of Title 16, Conservation. For complete classification of this Act to the Code, see Short Title note set out under section 1451 of Title 16 and Tables. The Clean Air Act, referred to in subsec. (d)(2), is act July 14, 1955, ch. 360, 69 Stat. 322, which is classified generally to chapter 85 (§ 7401 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 7401 of Title 42 and Tables. The Federal Water Pollution Control Act, referred to in subsec. (d)(3), is act June 30, 1948, ch. 758, as amended generally by Pub. L. 92–500, § 2, Oct. 18, 1972, 86 Stat. 816, which is classified generally to chapter 26 (§ 1251 et seq.) of Title 33, Navigation and Navigable Waters. For com- plete classification of this Act to the Code, see Short Title note set out under section 1251 of Title 33 and Ta- bles. AMENDMENTS 2005—Pub. L. 109–58, § 311(c)(1), inserted ‘‘; LNG termi- nals’’ after ‘‘natural gas’’ in section catchline. Subsecs. (d) to (f). Pub. L. 109–58, § 311(c)(2), added subsecs. (d) to (f). 1992—Pub. L. 102–486 designated existing provisions as subsec. (a) and added subsecs. (b) and (c). Executive Documents TRANSFER OF FUNCTIONS Enforcement functions of Secretary or other official in Department of Energy and Commission, Commis- sioners, or other official in Federal Energy Regulatory Commission related to compliance with authorizations for importation of natural gas from Alberta as pre-de- liveries of Alaskan gas issued under this section with respect to pre-construction, construction, and initial operation of transportation system for Canadian and Alaskan natural gas transferred to the Federal Inspec- tor, Office of Federal Inspector for Alaska Natural Gas Transportation System, until first anniversary of date of initial operation of Alaska Natural Gas Transpor- tation System, see Reorg. Plan No. 1 of 1979, §§ 102(d), 203(a), 44 F.R. 33663, 33666, 93 Stat. 1373, 1376, effective July 1, 1979, set out under section 719e of this title. Of- fice of Federal Inspector for the Alaska Natural Gas Transportation System abolished and functions and au- thority vested in Inspector transferred to Secretary of Energy by section 3012(b) of Pub. L. 102–486, set out as an Abolition of Office of Federal Inspector note under section 719e of this title. Functions and authority vest- ed in Secretary of Energy subsequently transferred to Federal Coordinator for Alaska Natural Gas Transpor- tation Projects by section 720d(f) of this title. DELEGATION OF FUNCTIONS Functions of President respecting certain facilities constructed and maintained on United States borders delegated to Secretary of State, see Ex. Ord. No. 11423, Aug. 16, 1968, 33 F.R. 11741, set out as a note under sec- tion 301 of Title 3, The President. EX. ORD. NO. 10485. PROVIDING FOR THE PERFORMANCE OF CERTAIN FUNCTIONS HERETOFORE PERFORMED BY THE PRESIDENT WITH RESPECT TO ELECTRIC POWER AND NATURAL GAS FACILITIES LOCATED ON THE BORDERS OF THE UNITED STATES Ex. Ord. No. 10485. Sept. 3, 1953, 18 F.R. 5397, as amended by Ex. Ord. No. 12038, Feb. 3, 1978, 43 F.R. 4957, provided: SECTION 1. (a) The Secretary of Energy is hereby des- ignated and empowered to perform the following-de- scribed functions: (1) To receive all applications for permits for the con- struction, operation, maintenance, or connection, at the borders of the United States, of facilities for the transmission of electric energy between the United States and a foreign country. (2) To receive all applications for permits for the con- struction, operation, maintenance, or connection, at the borders of the United States, of facilities for the ex- portation or importation of natural gas to or from a foreign country. (3) Upon finding the issuance of the permit to be con- sistent with the public interest, and, after obtaining the favorable recommendations of the Secretary of State and the Secretary of Defense thereon, to issue to the applicant, as appropriate, a permit for such con- struction, operation, maintenance, or connection. The Secretary of Energy shall have the power to attach to the issuance of the permit and to the exercise of the rights granted thereunder such conditions as the public interest may in its judgment require. (b) In any case wherein the Secretary of Energy, the Secretary of State, and the Secretary of Defense can- not agree as to whether or not a permit should be issued, the Secretary of Energy shall submit to the President for approval or disapproval the application for a permit with the respective views of the Secretary of Energy, the Secretary of State and the Secretary of Defense. SEC. 2. [Deleted.] SEC. 3. The Secretary of Energy is authorized to issue such rules and regulations, and to prescribe such proce- dures, as it may from time to time deem necessary or desirable for the exercise of the authority delegated to it by this order. SEC. 4. All Presidential Permits heretofore issued pursuant to Executive Order No. 8202 of July 13, 1939, and in force at the time of the issuance of this order, and all permits issued hereunder, shall remain in full force and effect until modified or revoked by the Presi- dent or by the Secretary of Energy. SEC. 5. Executive Order No. 8202 of July 13, 1939, is hereby revoked. § 717b–1. State and local safety considerations (a) Promulgation of regulations The Commission shall promulgate regulations on the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) pre-filing process within 60 days after August 8, 2005. An applicant shall comply with pre-filing process required