Fast-track pipelines and preemption

Summary#

The bill creates a fast-track process for interstate oil and natural gas pipelines that the President calls “covered pipeline projects” because they are needed for national security. It gives the Federal Energy Regulatory Commission (FERC) exclusive authority to approve these projects, limits state and local control, and allows use of eminent domain with rules for landowner compensation. The bill also lets the President waive major environmental laws for these projects and sets strict deadlines that can cause approvals to be “deemed” granted if agencies do not act.

• Who decides: The President designates which interstate pipelines are “covered.”
• Lead agency: FERC (called the “Commission” in the bill) becomes the only federal agency to approve siting, construction, expansion, or operation of covered pipelines.
• Fast deadlines: If federal agencies do not complete required actions within 180 days, those requirements are treated as satisfied; for State, local, or Tribal agencies the deadline is 60 days.
• Preemption: States, Tribes, and local governments cannot enforce laws that would block or delay a covered pipeline, and their permits are advisory only.
• Waivers: The President may waive compliance with NEPA, the Clean Air Act, the Clean Water Act, or the Endangered Species Act to avoid “unacceptable delay.”
• Eminent domain: Certificate holders may acquire land by negotiation or by filing condemnation proceedings, with required notice, appraisal, and rules for just compensation.

What it means for you#

• Landowners near a proposed pipeline

  • A pipeline company with a certificate may negotiate to buy rights. If negotiation fails, the company may sue to condemn (use eminent domain) in federal or state court.
  • Landowners must get written notice at least 30 days before condemnation is filed. That notice must include a description of the interest sought, an independent appraisal, and a statement that the owner can get their own appraisal and contest the offer.
  • Compensation must equal fair market value, include severance damages if only part of a parcel is taken, and separately value temporary construction work areas.

• Pipeline companies / developers

  • Can seek a “certificate” from FERC for a covered pipeline. FERC is the only body that can approve or deny the certificate for covered projects.
  • If federal or state agencies miss the bill’s deadlines, their required authorizations can be treated as approved, which could speed construction.
  • May face fewer state or local legal or permitting hurdles because those are preempted for covered projects.

• State, Tribal, and local governments

  • Cannot enforce laws or impose requirements that would delay or block a covered pipeline. Their permits are advisory only and have no binding effect on the project.
  • May have reduced ability to protect environmental, land use, or other local interests for covered projects.

• Federal agencies

  • FERC must act as lead agency to coordinate federal authorizations and environmental reviews for covered projects.
  • Agencies have 180 days to complete required federal actions or be deemed to have satisfied them.

• Military installations and defense-related facilities

  • The bill targets pipelines the President finds necessary to ensure energy for military bases, the defense industrial base, or critical infrastructure.

• General public and environment

  • The President can waive compliance with major environmental laws for covered projects, which could shorten environmental review or skip some protections. The bill requires notification to Congress about designations and waivers.

Expenses#

No publicly available information.

Possible costs or financial effects suggested by the bill text:

• The government must pay just compensation when land is taken under eminent domain. The bill defines how that compensation is calculated but does not estimate totals.
• FERC may need additional staff or resources to serve as lead agency and meet the bill’s coordination and reporting duties. The bill does not provide funding details.
• States, Tribes, and localities may lose permit fees or related administrative revenue for covered projects, because their permits are nonbinding.
• Legal costs could arise from expedited judicial review and any litigation in the D.C. Circuit.

Proponents' View#

• The bill appears intended to speed up pipeline projects that supporters view as crucial to national defense and resilience.
• It could reduce delays caused by multiple, overlapping federal, state, and local reviews. This may be seen as improving reliability of energy deliveries to military bases and defense industry facilities.
• Centralizing authority at FERC could make coordination among federal agencies simpler and avoid repeated or conflicting reviews.
• The bill requires good-faith negotiation and sets standards for fair compensation, which could be presented as protecting landowner rights while still allowing projects to proceed.

Opponents' View#

• One concern is that the bill sharply limits state, Tribal, and local control over land use and environmental protection for designated projects.
• The President’s power to waive major environmental laws (NEPA, Clean Air Act, Clean Water Act, Endangered Species Act) is broad and rests on the President’s judgment of “unacceptable delay.” It is unclear what checks apply.
• The strict deadlines that cause federal or state actions to be “deemed approved” may let projects move forward without complete environmental or regulatory review.
• The bill gives exclusive judicial review in the D.C. Circuit with an “arbitrary and capricious” standard for agency actions, which could narrow the courts’ ability to block improperly approved projects.
• The bill does not state clear criteria or procedures for how the President decides which pipelines qualify as “critical to national security,” leaving questions about scope and oversight.