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H.R. 1938 (112th): North American-Made Energy Security Act

The text of the bill below is as of Jul 28, 2011 (Placed on Calendar in the Senate). The bill was not enacted into law.


Calendar No. 116


1st Session

H. R. 1938


July 27, 2011

Received; read the first time

July 28, 2011

Read the second time and placed on the calendar


To direct the President to expedite the consideration and approval of the construction and operation of the Keystone XL oil pipeline, and for other purposes.


Short title

This Act may be cited as the North American-Made Energy Security Act.



Congress finds and declares the following:


The United States currently imports more than half of the oil it consumes, often from countries hostile to United States interests or with political and economic instability that compromises supply security.


While a significant portion of imports are derived from allies such as Canada and Mexico, the United States remains vulnerable to substantial supply disruptions created by geopolitical tumult in major producing nations.


Strong increases in oil consumption in the developing world outpace growth in conventional oil supplies, bringing tight market conditions and higher oil prices in periods of global economic expansion or when supplies are threatened.


The development and delivery of oil and gas from Canada to the United States is in the national interest of the United States in order to secure oil supplies to fill needs that are projected to otherwise be filled by increases in other foreign supplies, notably from the Middle East.


Continued development of North American energy resources, including Canadian oil, increases domestic refiners’ access to stable and reliable sources of crude and improves certainty of fuel supply for the Department of Defense, the largest consumer of petroleum in the United States.


Canada and the United States have the world’s largest two-way trading relationship. Therefore, for every United States dollar spent on products from Canada, including oil, 90 cents is returned to the United States economy. When the same metrics are applied to trading relationships with some other major sources of United States crude oil imports, returns are much lower.


The principal choice for Canadian oil exporters is between moving increasing crude oil volumes to the United States or Asia, led by China. Increased Canadian oil exports to China will result in increased United States crude oil imports from other foreign sources, especially the Middle East.


Increased Canadian crude oil imports into the United States correspondingly reduce the scale of wealth transfers to other more distant foreign sources resulting from the greater cost of importing crude oil from those sources.


Not only are United States companies major investors in Canadian oil sands, but many United States businesses throughout the country benefit from supplying goods and services required for ongoing Canadian oil sands operations and expansion.


There has been more than 2 years of consideration and a coordinated review by more than a dozen Federal agencies of the technical aspects and of the environmental, social, and economic impacts of the proposed pipeline project known as the Keystone XL from Hardisty, Alberta, to Steele City, Nebraska, and then on to the United States Gulf Coast through Cushing, Oklahoma.


Keystone XL represents a high capacity pipeline supply option that could meet early as well as long-term market demand for crude oil to United States refineries, and could also potentially bring over 100,000 barrels per day of United States Bakken crudes to market.


Completion of the Keystone XL pipeline would increase total Keystone pipeline capacity by 700,000 barrels per day to 1,290,000 barrels per day.


The Keystone XL pipeline would provide short-term and long-term employment opportunities and related labor income benefits, as well as government revenues associated with sales and payroll taxes.


The earliest possible construction of the Keystone XL pipeline will make the extensive proven and potential reserves of Canadian oil available for United States use and increase United States jobs and will therefore serve the national interest.


Analysis using the Environmental Protection Agency models shows that the Keystone XL pipeline will result in no significant change in total United States or global greenhouse gas emissions.


The Keystone XL pipeline would be state-of-the-art and have a degree of safety higher than any other typically constructed domestic oil pipeline system.


Because of the extensive governmental studies already made with respect to the Keystone XL project and the national interest in early delivery of Canadian oil to United States markets, a decision with respect to a Presidential Permit for the Keystone XL pipeline should be promptly issued without further administrative delay or impediment.


Expedited approval process


In general

The President, acting through the Secretary of Energy, shall coordinate with each Federal agency responsible for coordinating or considering an aspect of the President’s National Interest Determination and Presidential Permit decision regarding construction and operation of the Keystone XL pipeline, to ensure that all necessary actions with respect to such decision are taken on an expedited schedule.


Agency cooperation with Secretary of Energy

Each Federal agency described in subsection (a) shall comply with any deadline established by the Secretary of Energy pursuant to subsection (a).


Final order

Not later than 30 days after the issuance of the final environmental impact statement, the President shall issue a final order granting or denying the Presidential Permit for the Keystone XL pipeline, but in no event shall such decision be made later than November 1, 2011.


Environmental review

No action by the Secretary of Energy pursuant to this section shall affect any duty or responsibility to comply with any requirement to conduct environmental review.


Sense of Congress

It is the sense of Congress that the United States must decrease its dependence on oil from countries which are hostile to the interests of the United States. Canada has long been a strong trading partner, and increased access to their energy resources will create jobs in the United States.

Passed the House of Representatives July 26, 2011.

Karen L. Haas,