President Donald Trump will issue two executive orders today seeking changes to rules that have thrown up hurdles to projects such as the Keystone XL crude pipeline and natural gas pipelines in New York.
The executive orders envision overhauling permitting rules for pipelines and LNG facilities. They instruct federal agencies to prioritize updates to water permitting regulations and safety standards that the energy sector says have stalled numerous projects.
But industry officials question whether the orders will provide near-term relief to projects delayed because of litigation.
Trump will sign the orders today near Houston, as he gears up a re-election campaign based in part on his "energy dominance" agenda. Oil and gas production has boomed since Trump took office, but he has failed to deliver on promises to enable pipeline operator TransCanada to start construction on the long-delayed, 830,000 b/d Keystone XL pipeline.
One executive order aims to streamline permitting for cross-border oil pipelines such as Keystone XL, which would cross the US-Canadian border. The order would revoke a policy that gave the US State Department responsibility to permit cross-border oil pipelines, a process that has become a source of delays and litigation for many projects. Instead, that authority would reside exclusively with the president. The State Department could still advise the president but would have to do so within 60 days.
The order appears to align with Trump's decision on 29 March to reissue a presidential permit for the 1,180-mile (1,900km) Keystone XL pipeline. The administration this week asked a court to throw out litigation around an earlier presidential permit that was approved under the previous process.
The other executive order focuses broadly on energy infrastructure. It will attempt to limit the ability of states to use "section 401" water permits to block gas pipelines by ordering regulators to update their rules and guidance. New York has used those water permits to block the 628mn cf/d Constitution and the 500mn cf/d Northern Access natural gas pipelines.
The executive order will also direct the US transportation secretary to update 40-year-old safety standards for LNG liquefaction facilities and revise existing rules that prohibit the transportation of LNG on rail cars. Those rules have "failed to adapt to recognize industry best practices and modern technologies," a senior administration official said.
Industry officials have conceded that revisions to the section 401 water permitting rules would be helpful, by narrowing when states can deny pipeline permits.
But they say without changes to the Clean Water Act, states would still likely be able to use their permitting authority to stop projects they oppose.
