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15
USC 717b: Exportation or importation of natural gas; LNG
terminals Text contains those laws in effect on
November 17, 2019

From Title 15-COMMERCE AND
TRADECHAPTER 15B-NATURAL GAS

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In TextAmendmentsExecutive
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§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), the importation 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 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.

(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 .)

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 , as amended, which is classified 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 , as amended, 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 complete classification
of this Act to the Code, see Short Title note set out under section 1251 of Title
33 and Tables.

Amendments

2005-Pub. L. 109–58, §311(c)(1), inserted "; LNG
terminals" 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).

Transfer of Functions

Enforcement functions of Secretary or other official in
Department of Energy and Commission, Commissioners, or other official in Federal
Energy Regulatory Commission related to compliance with authorizations for
importation of natural gas from Alberta as pre-deliveries 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 Inspector, Office of Federal Inspector for Alaska
Natural Gas Transportation System, until first anniversary of date of initial
operation of Alaska Natural Gas Transportation 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. Office of Federal Inspector for the Alaska Natural Gas
Transportation System abolished and functions and authority 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 vested in Secretary of Energy subsequently
transferred to Federal Coordinator for Alaska Natural Gas Transportation
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 section 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 designated and empowered to perform the following-described
functions:

(1) To receive all applications for permits for the
construction, 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
construction, operation, maintenance, or connection, at the borders of the
United States, of facilities for the exportation or importation of natural gas
to or from a foreign country.

(3) Upon finding the issuance of the permit to be consistent
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 construction, 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 cannot 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
procedures, 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 President or by the Secretary of Energy.

Sec. 5. Executive Order No. 8202
of July 13, 1939, is hereby revoked.

1 So
in original. Probably should be "finds".

2 So
in original. Probably should be "coordinates and consults".