15 U.S.C. § 717b : US Code - Section 717B: Exportation or importation of natural gas; LNG terminals

Search 15 U.S.C. § 717b : US Code - Section 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 natural gas from a foreign country without first having secured
an order of the Commission authorizing it to do so. The Commission
shall issue such order upon application, unless, after opportunity
for hearing, it finds that the proposed exportation 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 requiring 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 natural gas on an unjust, unreasonable,
unduly discriminatory, or preferential basis.
(c) Expedited application and approval process
For purposes of subsection (a) of this section, the importation
of the natural gas referred to in subsection (b) of this section,
or the exportation of natural gas to a nation with which there is
in effect a free trade agreement 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 granted 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 provided in
this chapter, nothing in this chapter is intended to affect
otherwise applicable law related to any Federal agency's
authorities or responsibilities 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 terminal is located and, if not the same, the Governor-
appointed State agency described in section 717b-1 of this
title;
(C) decide the matter in accordance with this subsection; and
(D) issue or deny the appropriate order accordingly.
(3)(A) Except as provided in subparagraph (B), the Commission may
approve an application described 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 applicant, or any affiliate of the
applicant, securing 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 Commission schedules or
contracts related to the rates, charges, terms, or conditions
of service 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 access basis shall not result in
subsidization of expansion capacity by existing customers,
degradation of service to existing customers, or undue
discrimination against existing customers 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 installation" -
(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 primarily for civil
works, rivers and harbors projects, or flood control projects, as
determined by the Secretary of Defense.
(2) The Commission shall enter into a memorandum 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
installation.
(3) The Commission shall obtain the concurrence of the Secretary
of Defense before authorizing the siting, construction, expansion,
or operation of liquefied natural gas facilities affecting the
training or activities of an active military installation.