II 117th CONGRESS 2d Session S. 3762 IN THE SENATE OF THE UNITED STATES March 3, 2022 Mr. Cruz (for himself and Mr. Hagerty ) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources A BILL To provide greater output, price stability, and regulatory certainty with respect to domestic energy production in the United States and exports, and for other purposes.

1. Short title; table of contents (a) Short title This Act may be cited as the Energy Freedom Act . (b) Table of contents The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Definition of Secretary. TITLE I—Accelerating energy approvals to reduce bottlenecks Sec. 101. Findings. Sec. 102. Review and approval of certain natural gas transmission projects. Sec. 103. Expedited approval for certain natural gas interstate pipelines. Sec. 104. Natural gas exports. Sec. 105. Pending applications to export natural gas. Sec. 106. Domestic environmental impacts. Sec. 107. No Presidential permit required. TITLE II—Utilizing America’s onshore resources Sec. 201. Finding. Sec. 202. Annual oil and natural gas lease sales. Sec. 203. Permit to drill application timeline. Sec. 204. Congressional authority requirement. Sec. 205. Prohibition on moratoria of new energy leases on certain Federal land and on withdrawal of Federal land from energy development. TITLE III—Outer Continental Shelf leasing Sec. 301. Finding. Sec. 302. Offshore lease sales. TITLE IV—Alternative energy Sec. 401. Geothermal, solar, and wind leasing priority areas. Sec. 402. Geothermal production on Federal lands. Sec. 403. Alternative energy and minerals with respect to territories of the United States. Sec. 404. Hardrock mineral licensing. TITLE V—Stopping Executive overreach Sec. 501. Finding. Sec. 502. Navigable Waters Protection Rule. Sec. 503. Methane rule. Sec. 504. ONRR 2020 Valuation Reform and Civil Penalty Rule. Sec. 505. NEPA rule. Sec. 506. Nationwide permit 12. 2. Definition of Secretary In this Act, the term Secretary means the Secretary of the Interior. I Accelerating energy approvals to reduce bottlenecks 101. Findings Congress finds that— (1) natural gas is a safe and abundant resource and is proven to be environmentally responsible; and (2) increasing the safe transmission of natural gas will lead to more reliable, abundant, and cleaner domestic supplies of energy that will contribute to job growth and economic development. 102. Review and approval of certain natural gas transmission projects (a) FERC approvals Section 7(e) of the Natural Gas Act ( 15 U.S.C. 717f(e) ) is amended— (1) in the second sentence, by striking The Commission and inserting the following: (3) Terms and conditions The Commission ; (2) by striking (e) Except and inserting the following: (e) Application procedure (1) In general Except ; and (3) by inserting after paragraph (1) (as so designated) the following: (2) Deadline for processing applications (A) In general Not later than 1 year after the date on which the Commission receives an application for a certificate of public convenience and necessity under subsection (c), the Commission shall— (i) complete all required consultations with other Federal agencies; (ii) review the application in accordance with the requirements of this section; and (iii) issue the certificate or deny the application. (B) Reasons for denial If the Commission denies an application under subparagraph (A)(iii), the Commission shall state the reasons for the denial. . (b) Corps of Engineers approvals (1) Definition of covered authorization In this subsection, the term covered authorization means an authorization or approval required under Federal law from the Secretary of the Army for any natural gas transmission project, including an authorization— (A) under section 404 of the Federal Water Pollution Control Act ( 33 U.S.C. 1344 ); (B) under section 10 of the Act of March 3, 1899 (commonly known as the Rivers and Harbors Act of 1899 ) (30 Stat. 1151, chapter 425; 33 U.S.C. 403 ); (C) for an easement under section 28 of the Mineral Leasing Act ( 30 U.S.C. 185 ); (D) for permission under section 14 of the Act of March 3, 1899 (commonly known as the Rivers and Harbors Act of 1899 ) (30 Stat. 1152, chapter 425; 33 U.S.C. 408 ); (E) under the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ); and (F) any other applicable Federal law. (2) Requirement The Secretary of the Army shall— (A) approve or deny an application or request for a covered authorization, including the completion of any required consultations with other Federal agencies, by not later than 1 year after the date on which the application or request is submitted; and (B) if the application or request for a covered authorization is denied, provide to the applicant or requester the reasons for the denial. 103. Expedited approval for certain natural gas interstate pipelines Section 7(c)(1) of the Natural Gas Act ( 15 U.S.C. 717f )(c)(1)) is amended— (1) in subparagraph (A)— (A) in the first sentence, by striking or operations: Provided, however, That if any such and inserting the following: “or operations. (ii) Prior operations If any such ; and (B) by adding at the end the following: (iii) Projects that meet safety regulations With respect to any application for a certificate of public convenience and necessity under clause (i) for which the Commission determines that the project covered by the application meets all safety regulations in effect as of the date of the application, the Commission shall issue the certificate without requiring further proof that public convenience and necessity will be served by the project, and without further proceedings. ; (2) by striking (c)(1)(A) No natural-gas company and inserting the following: (c) Certificates of public convenience and necessity (1) Applications (A) Requirement to apply for certificate (i) In general No natural-gas company ; and (3) in subparagraph (B), by striking (B) In all other cases the Commission and inserting the following: (B) Hearings In all cases other than the cases described in clauses (ii) and (iii) of subparagraph (A), the Commission . 104. Natural gas exports (a) Findings Congress finds that— (1) increasing clean and safe natural gas exports will lead to increased investment and development of domestic supplies of natural gas that will contribute to job growth and economic development; and (2) the export of clean and safe natural gas to other nations is of vital national interest to the United States. (b) Natural gas exports Section 3(c) of the Natural Gas Act ( 15 U.S.C. 717b(c) ) is amended— (1) by inserting or any other nation not excluded by this section after trade in natural gas ; (2) by inserting and in any event by not later than 60 days after the date on which the application is received before the period at the end; (3) by striking (c) For purposes and inserting the following: (c) Expedited application and approval process (1) In general For purposes ; and (4) by adding at the end the following: (2) Exclusions (A) In general Any nation subject to sanctions or trade restrictions imposed by the United States is excluded from expedited approval under paragraph (1). (B) Designation by President or Congress The President or Congress may designate nations that may be excluded from expedited approval under paragraph (1) for reasons of national security. (3) Order not required No order is required under subsection (a) to authorize the export or import of any natural gas to or from Canada or Mexico. . 105. Pending applications to export natural gas All applications to export natural gas from the United States to a foreign country submitted under section 3(a) of the Natural Gas Act ( 15 U.S.C. 717b(a) ) during the period beginning on January 1, 2020, and ending on January 1, 2025, are deemed approved. 106. Domestic environmental impacts (a) In general Section 102(2) of the National Environmental Policy Act of 1969 ( 42 U.S.C. 4332(2) ) is amended— (1) in subparagraph (C)— (A) in the matter preceding clause (i), by inserting in the United States after human environment ; (B) in clause (i), by inserting in the United States after proposed action ; and (C) in clause (ii), by inserting in the United States after environmental effects ; and (2) in subparagraph (F), by inserting in any proposal or other major Federal action that involves the funding or development of projects outside the United States or the exclusive economic zone of the United States, before recognize . (b) Implementing regulations Not later than 1 year after the date of enactment of this Act, the Council on Environmental Quality shall revise the implementing regulations of the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ) under subchapter A of chapter V of title 40, Code of Federal Regulations (or successor regulations), in accordance with the amendments made by subsection (a). 107. No Presidential permit required No Presidential permit (or similar permit) required under Executive Order 13337 ( 3 U.S.C. 301 note; 69 Fed. Reg. 25299 (April 30, 2004)), Executive Order 11423 ( 3 U.S.C. 301 note; 33 Fed. Reg. 11741 (August 16, 1968)), section 301 of title 3, United States Code, Executive Order 12038 (43 Fed. Reg. 3674 (January 26, 1978)), Executive Order 10485 (18 Fed. Reg. 5397 (September 9, 1953)), or any other Executive order shall be necessary for the construction, connection, operation, or maintenance of an oil or natural gas pipeline or electric transmission facility, or any cross-border segment thereof. II Utilizing America’s onshore resources 201. Finding Congress finds that regular and predictable leasing and permitting on Federal land is important to domestic energy production, which leads to robust competition and lower energy prices. 202. Annual oil and natural gas lease sales (a) Annual lease sales Notwithstanding any other provision of law, in accordance with the Mineral Leasing Act ( 30 U.S.C. 181 et seq. ), beginning in fiscal year 2022, the Secretary shall conduct a minimum of 4 oil and natural gas lease sales annually in each of the following States: (1) Wyoming. (2) New Mexico. (3) Colorado. (4) Utah. (5) Montana. (6) North Dakota. (7) Oklahoma. (8) Nevada. (9) Alaska. (10) Any other State in which there is land available for oil and natural gas leasing under that Act. (b) Requirement In conducting a lease sale under subsection (a) in a State described in that subsection, the Secretary shall offer all parcels eligible for oil and gas development under the resource management plan in effect for the State. (c) Replacement sales If, for any reason, a lease sale under subsection (a) for a calendar year is canceled, delayed, or deferred, including for a lack of eligible parcels, the Secretary shall conduct a replacement sale during the same calendar year. 203. Permit to drill application timeline Section 17(p) of the Mineral Leasing Act ( 30 U.S.C. 226(p) ) is amended by striking paragraph (2) and inserting the following: (2) Applications for permits to drill reform and process (A) In general Not later than the end of the 30-day period beginning on the date an application for a permit to drill is received by the Secretary, the Secretary shall decide whether to issue the permit. (B) Extension (i) In general The Secretary may extend the period described in subparagraph (A) for up to 2 periods of 15 days each, if the Secretary has given written notice of the delay to the applicant. (ii) Notice The notice shall— (I) be in the form of a letter from the Secretary or a designee of the Secretary; and (II) include— (aa) the names and titles of the persons processing the application; (bb) the specific reasons for the delay; and (cc) a specific date a final decision on the application is expected. (C) Notice of reasons for denial If the application is denied, the Secretary shall provide the applicant— (i) a written statement that provides clear and comprehensive reasons why the application was not accepted and detailed information concerning any deficiencies; and (ii) an opportunity to remedy any deficiencies. (D) Application deemed approved (i) In general Except as provided in clause (ii), if the Secretary has not made a decision on the application by the end of the 60-day period beginning on the date the application is received by the Secretary, the application shall be considered approved. (ii) Exceptions Clause (i) shall not apply in cases in which existing reviews under the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ) or Endangered Species Act of 1973 ( 16 U.S.C. 1531 et seq. ) are incomplete. (E) Denial of permit If the Secretary decides not to issue a permit to drill under this paragraph, the Secretary shall— (i) provide to the applicant a description of the reasons for the denial of the permit; (ii) allow the applicant to resubmit an application for a permit to drill during the 10-day period beginning on the date the applicant receives the description of the denial from the Secretary; and (iii) issue or deny any resubmitted application not later than 10 days after the date the application is submitted to the Secretary. (F) Fee (i) In general Notwithstanding any other provision of law, the Secretary shall collect a single $6,500 permit processing fee per application from each applicant at the time the final decision is made whether to issue a permit under subparagraph (A). (ii) Resubmitted application The fee required under clause (i) shall not apply to any resubmitted application. (iii) Treatment of permit processing fee Subject to appropriation, of all fees collected under this paragraph for each fiscal year, 50 percent shall be— (I) transferred to the field office at which the fees are collected; and (II) used to process protests, leases, and permits under this Act. . 204. Congressional authority requirement Notwithstanding any other provision of law, the Secretary may not declare a moratorium on the leasing of Federal land, including outer Continental Shelf land, for the drilling, mining, or collection of oil, gas, or coal, or for related activities, unless the moratorium is authorized by an Act of Congress. 205. Prohibition on moratoria of new energy leases on certain Federal land and on withdrawal of Federal land from energy development (a) Definitions In this section: (1) Critical mineral The term critical mineral has the meaning given the term in section 7002(a) of the Energy Act of 2020 ( 30 U.S.C. 1606(a) ). (2) Federal land (A) In general The term Federal land means— (i) National Forest System land; (ii) public lands (as defined in section 103 of the Federal Land Policy and Management Act of 1976 ( 43 U.S.C. 1702 )); (iii) the outer Continental Shelf (as defined in section 2 of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1331 )); and (iv) land managed by the Secretary of Energy. (B) Inclusions The term Federal land includes land described in clauses (i) through (iv) of subparagraph (A) for which the rights to the surface estate or subsurface estate are owned by a non-Federal entity. (3) President The term President means the President or any designee of the President, including— (A) the Secretary of Agriculture; (B) the Secretary of Energy; and (C) the Secretary. (b) Prohibitions (1) In general Notwithstanding any other provision of law, the President may not carry out any action that would prohibit or substantially delay the issuance of any of the following on Federal land, unless such an action has been authorized by an Act of Congress: (A) New oil and gas leases, drill permits, approvals, or authorizations. (B) New coal leases, permits, approvals, or authorizations. (C) New hardrock leases, permits, approvals, or authorizations. (D) New critical minerals leases, permits, approvals, or authorizations. (2) Prohibition on withdrawal Notwithstanding any other provision of law, the President may not withdraw any Federal land from forms of entry, appropriation, or disposal under the public land laws, location, entry, and patent under the mining laws, or disposition under laws pertaining to mineral and geothermal leasing or mineral materials unless the withdrawal has been authorized by an Act of Congress. III Outer Continental Shelf leasing 301. Finding Congress finds that regular and predictable leasing and permitting on the outer Continental Shelf is important to domestic energy production, which leads to robust competition and low energy prices. 302. Offshore lease sales (a) Offshore lease sales The Secretary shall conduct all lease sales described in the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program (November 2016) that have not been conducted as of the date of enactment of this Act by not later than December 31, 2022. (b) Central and Western Gulf of Mexico region annual lease sales (1) In general Notwithstanding any other provision of law, if a final 2023–2027 oil and gas leasing program is not approved under section 18(a) of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1344(a) ) by July 1, 2022, the Secretary shall conduct a minimum of 2 region-wide oil and natural gas lease sales annually in the Gulf of Mexico Region of the outer Continental Shelf, which shall include the following areas described in the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program (November 2016): (A) The Central Gulf of Mexico Planning Area. (B) The Western Gulf of Mexico Planning Area. (2) Timing The Secretary shall conduct the first lease sales required under paragraph (1) in the first and third quarters of calendar year 2023. (3) Inclusions Each lease sale required under paragraph (1)— (A) shall offer all unleased acres in the Central Gulf of Mexico Planning Area and the Western Gulf of Mexico Planning Area; and (B) shall be subject to the same lease stipulations, withdrawals, and moratoriums as were included in Gulf of Mexico Outer Continental Shelf Region-wide Oil and Gas Lease Sale 256 conducted on November 18, 2020. (4) Continuation The Secretary shall conduct lease sales annually under this subsection until the date on which a new 5-year oil and gas leasing program is approved and implemented under section 18(a) of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1344(a) ). (c) Alaska region annual lease sales Notwithstanding any other provision of law, beginning in fiscal year 2022, the Secretary shall conduct a minimum of 2 region-wide oil and natural gas lease sales annually in the Alaska Region of the outer Continental Shelf, as described in the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program (November 2016). IV Alternative energy 401. Geothermal, solar, and wind leasing priority areas (a) Designation of geothermal, solar, and wind leasing priority areas As soon as practicable, but not later than 1 year after the date of enactment of this Act, the Secretary, in consultation with the Secretary of Energy, shall designate— (1) 1 or more priority areas on Federal land for geothermal energy leasing; (2) 1 or more priority areas on Federal land for solar energy leasing; and (3) 1 or more priority areas on Federal land for wind energy leasing. (b) Criteria for selection In determining whether Federal land should be designated as a priority area for geothermal, solar, or wind energy leasing under subsection (a), the Secretary, in consultation with the Secretary of Energy, shall consider whether— (1) production of geothermal, solar, or wind energy on the Federal land is economically viable, including whether the Federal land has access to existing methods of energy transmission; and (2) the designation would comply with section 202 of the Federal Land Policy and Management Act of 1976 ( 43 U.S.C. 1712 ), including subsection (c)(9) of that section. (c) Timeline for leasing As soon as practicable, but not later than 1 year, after designating the priority areas under subsection (a), the Secretary shall conduct, as applicable, geothermal, solar, or wind lease sales for the priority areas. 402. Geothermal production on Federal lands The Geothermal Steam Act of 1970 ( 30 U.S.C. 1001 et seq. ) is amended by adding at the end the following: 30. Categorical exclusion for geothermal exploration test projects (a) Requirement To provide notice Not later than 30 days before the date on which the holder of a lease issued under this Act intends to begin carrying out a project the leaseholder believes is a geothermal exploration test project, the leaseholder shall provide notice to the Secretary of the intent to carry out the geothermal exploration test project. (b) Review and determination Not later than 10 days after receipt of a notice of intent from a leaseholder under subsection (a), the Secretary shall, with respect to the project described in the notice of intent— (1) (A) determine whether the project is a geothermal exploration test project; and (B) if so, determine whether the geothermal exploration test project qualifies for a categorical exclusion in accordance with subsection (c); and (2) notify the leaseholder of the determinations under paragraph (1). (c) Categorical exclusion Unless extraordinary circumstances exist, as determined by the Secretary, a project that the Secretary determines is a geothermal exploration test project under subsection (b)(1)(A) shall be categorically excluded from the requirements for an environmental assessment or an environmental impact statement under the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ). (d) Opportunity To remedy If the Secretary determines under subsection (b)(1)(A) that a project is not a geothermal exploration test project or under subsection (b)(1)(B) that a geothermal exploration test project does not qualify for a categorical exclusion because extraordinary circumstances exist, the Secretary shall— (1) include in the notice under subsection (b)(2) clear and detailed findings on any deficiencies in the project that resulted in the determination; and (2) allow the leaseholder to remedy any such deficiencies and resubmit the notice of intent under subsection (a). . 403. Alternative energy and minerals with respect to territories of the United States Section 2 of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1331 ) is amended— (1) in subsection (a)— (A) by striking lying seaward and inserting the following: “lying— (1) seaward ; (B) in paragraph (1) (as so designated), by adding or after the semicolon at the end; and (C) by adding at the end the following: (2) within the exclusive economic zone of the United States adjacent to any territory or possession (other than an area conveyed by Congress to a territorial government for administration); ; (2) in subsection (p), by striking and after the semicolon at the end; (3) in subsection (q), by striking the period at the end and inserting a semicolon; and (4) by adding at the end the following: (r) The term State means— (1) each of the several States; and (2) each territory or possession; and (s) The term territory or possession means— (1) the Commonwealth of Puerto Rico; (2) Guam; (3) American Samoa; (4) the United States Virgin Islands; and (5) the Commonwealth of the Northern Mariana Islands. . 404. Hardrock mineral licensing The Outer Continental Shelf Lands Act ( 43 U.S.C. 1331 et seq. ) is amended by adding at the end the following: 33. Hardrock mineral licensing (a) In general The Secretary may grant noncompetitive licenses for the exploration and mining of hardrock minerals on the outer Continental Shelf. (b) Royalty rate The royalty rate for hardrock minerals extracted pursuant to a license under subsection (a) shall be a royalty rate determined by the Secretary through regulations issued not more than 2 years after the date of enactment of the Energy Freedom Act , which may include a royalty rate of 0 percent if the Secretary finds that such a royalty rate is necessary to ensure competition. . V Stopping Executive overreach 501. Finding Congress finds that frequent change to major energy regulations have a detrimental effect on investment in, and development of, domestic energy production, which reduces competition and raises energy prices. 502. Navigable Waters Protection Rule (a) Reinstatement The final rule of the Corps of Engineers and the Environmental Protection Agency entitled The Navigable Waters Protection Rule: Definition of Waters of the United States (85 Fed. Reg. 22250 (April 21, 2020)) is hereby reinstated, and each of its provisions shall apply unless and until the effective date of a subsequent final rule promulgated, subject to subsection (b), under applicable authority that replaces or repeals that provision. (b) Modification prohibited The Secretary of the Army and the Administrator of the Environmental Protection Agency may not modify the final rule described in subsection (a) during the 15-year period that begins on the date of enactment of this Act. 503. Methane rule (a) Reinstatement Notwithstanding Public Law 117–23 (135 Stat. 295), the final rule of the Environmental Protection Agency entitled Oil and Natural Gas Sector: Emission Standards for New, Reconstructed, and Modified Sources Review (85 Fed. Reg. 57018 (September 14, 2020)) is hereby reinstated, and each of its provisions shall apply unless and until the effective date of a subsequent final rule promulgated, subject to subsection (b), under applicable authority that replaces or repeals that provision. (b) Modification prohibited The Administrator of the Environmental Protection Agency may not modify the final rule described in subsection (a) during the 15-year period that begins on the date of enactment of this Act. 504. ONRR 2020 Valuation Reform and Civil Penalty Rule (a) Reinstatement The final rule of the Office of Natural Resources Revenue of the Department of the Interior entitled ONRR 2020 Valuation Reform and Civil Penalty Rule (86 Fed. Reg. 4612 (January 15, 2021)) is hereby reinstated, and each of its provisions shall apply unless and until the effective date of a subsequent final rule promulgated, subject to subsection (b), under applicable authority that replaces or repeals that provision. (b) Modification prohibited The Secretary and the Director of the Office of Natural Resources Revenue may not modify the final rule described in subsection (a) during the 15-year period that begins on the date of enactment of this Act. 505. NEPA rule (a) Reinstatement The final rule of the Council on Environmental Quality entitled Update to the Regulations Implementing the Procedural Provisions of the National Environmental Policy Act (85 Fed. Reg. 43304 (July 16, 2020)) is hereby reinstated, and each of its provisions shall apply unless and until the effective date of a subsequent final rule promulgated, subject to subsection (b), under applicable authority that replaces or repeals that provision. (b) Updates to implementing regulations Not later than 60 days after the date of enactment of this Act, the Council on Environmental Quality shall revise the implementing regulations of the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ) under subchapter A of chapter V of title 40, Code of Federal Regulations (or successor regulations), in accordance with the final rule described in subsection (a). (c) Prohibition The Council on Environmental Quality may not modify the final rule described in subsection (a) during the 15-year period that begins on the date of enactment of this Act. 506. Nationwide permit 12 Notwithstanding any other provision of law, the Secretary of the Army may not modify nationwide permit 12, as described in the final rule of the Secretary of the Army entitled Reissuance and Modification of Nationwide Permits (86 Fed. Reg. 2744 (January 13, 2021)), during the 15-year period that begins on the date of enactment of this Act.