Department of Energy (DOE). DOE also plays a lead role in North American energy integration  activities. As the lead agency for foreign policy  related to energy, State may play a part in most bilateral and trilateral  efforts. U.S., Canadian, and Mexican Governments Cooperate on Energy Integration, although Some Strategic Efforts Have Made Limited Progress

Generally speaking, the United States cooperates on energy integration  with Canada and Mexico strategically at the presidential and ministry  levels and technically at the agency level, although progress on some  strategic efforts has been limited. However, efforts  to develop a North American Energy Strategy were placed on hold in late  2017 because of disagreement about its scope, although discussions  resumed in 2018, according DOE officials. However, efforts to formalize the strategy were  subsequently suspended because of a lack of agreement on its scope,  according to U.S., Canadian, and Mexican officials. While  some of these activities had multiple purposes or goals, the activities  generally comprised five types: technical discussions and assistance,  regulatory cooperation, international agreements and other instruments,  trade promotion, and research and development. For  example:
DOE. For example:
DOE. For  example:
DOE. U.S. Agencies Reported Coordinating through High-Level Interagency Meetings and Working-Level Efforts

Agency officials reported coordinating their energy integration–related  activities through a number of coordination efforts and mechanisms. Officials of agencies participating in the NSC-led working  group reported that it served primarily as a mechanism to promote  coordination and to bring awareness of agencies’ bilateral and  trilateral engagement with Canada and Mexico to the NSC and to the  other agencies participating in the group. According to U.S. agency officials we interviewed,  multiple agencies have provided input and advice in preparation for  summits and meetings such as the North American Leaders’ Summit, the  North American Energy Ministerial, the North American Foreign Ministers’  Meeting, and the U.S.–Mexico High Level Economic Dialogue. U.S. Additionally, agencies may use formal public–private bodies and  collaborations that gather private sector and civil society input on energy  integration issues. For example, the private sector members of the U.S.– Mexico Energy Business Council are able to provide recommendations to  U.S. and Mexican agencies. Informal Mechanisms

Agencies receive input on North American energy integration from the  private sector and civil society through informal mechanisms such as  letters, emails, phone calls, interactions at various related events,  personal connections, and reports. U.S., Canadian, and Mexican Officials Suggested Steps to Further Energy Integration but Expressed General Satisfaction with Intergovernmental Cooperation

Some of the officials we interviewed from all three countries suggested  several new or additional steps that the U.S. government could take, in  cooperation with Canada and Mexico, to address factors that might  impede energy integration and to facilitate a more integrated and secure  energy market in North America. Steps Suggested by U.S., Canadian, and Mexican Officials to Further North American Energy Integration
Align energy-related regulations. Involve states and provinces in energy integration efforts. The  roles played by states and provinces in the countries’ energy sectors vary  by country. GAO staff who made key contributions to this  report are listed in appendix V.

Appendix I: Objectives, Scope and Methodology

This report examines (1) ways in which the U.S., Canadian, and Mexican  governments cooperate on North American energy integration; (2) U.S.  agencies’ activities to facilitate North American energy integration; (3)  U.S. agencies’ efforts to coordinate among themselves on North  American energy integration; (4) ways in which U.S. agencies obtain  feedback and input from U.S. industry and civil society regarding North  American energy integration; and (5) steps that U.S., Canadian, and  Mexican officials suggested to further facilitate North American energy  integration. Appendix III: U.S. Agencies’ North American Energy Integration Activities, 2014-1017

Table 2 describes activities related to North American energy integration  in 2014 through 2017 reported by eight U.S. agencies—the Departments  of Energy, Interior, Commerce, State, Transportation, and the Treasury;  the U.S. Agency for International Development; and the Federal Energy  Regulatory Commission.
Why GAO Did This Study

According to a U.S. government study, increased U.S. energy trade with Canada and Mexico—two of the United States' top energy trade partners—is viewed as a major contributor to U.S. economic prosperity and energy security. In recent years, North American energy production has experienced changes. For example, the United States has become the world's top oil producer, Canada has substantially increased its oil outputs, and Mexico has implemented energy reforms. To address energy production and trade issues, the public sector and private sector stakeholders have advocated for further integration of the three North American countries' energy sectors.
GAO was asked to review the role of U.S. agencies in supporting energy integration in North America. This report examines (1) ways in which the U.S., Canadian, and Mexican governments cooperate on North American energy integration; (2) U.S. agencies' activities to facilitate North American energy integration; (3) U.S. agencies' efforts to coordinate among themselves on North American energy integration; (4) ways in which U.S. agencies receive feedback from U.S. industry and civil society regarding North American energy integration; and (5) steps that U.S., Canadian, and Mexican officials suggested to further facilitate North American energy integration. GAO reviewed bilateral and trilateral cooperation activities and mechanisms; surveyed U.S. agencies involved in energy integration; and interviewed U.S., Canadian, and Mexican energy officials.
GAO is not making any recommendations in this report.

What GAO Found

Cooperation. The United States cooperates with Canada and Mexico on integrating North American energy markets and infrastructure (energy integration). Cooperation occurs at the presidential and ministerial levels (e.g., the countries' secretaries or ministers of energy) for strategic issues and at the agency level for technical issues. However, progress on some strategic issues has been limited. For example, development of a North American energy strategy, which the U.S. Department of Energy (DOE) proposed in March 2017, was suspended later that year because of disagreement about its scope. Discussions of the strategy resumed in 2018, according to DOE officials.
Agency activities. Eight U.S. agencies have engaged in multiple efforts to facilitate North American energy integration. DOE generally serves as the lead agency on energy integration issues, while the Department of State—the lead agency on foreign policy—also leads some bilateral and trilateral efforts. Other agencies play roles in areas such as regulatory compliance or efforts to open energy markets. Agency officials GAO surveyed and interviewed identified 81 energy integration–related activities conducted in 2014 through 2017, including international agreements and other instruments, research and development, technical forums and assistance, regulatory cooperation, and trade promotion.
Interagency coordination. U.S. agency officials reported coordinating on energy integration through high-level U.S. interagency meetings, summits, and other means. For example, agencies participating in a National Security Council–led working group share information, provide advice, and coordinate on activities. Agency officials also reported using mechanisms such as stakeholder forums and staff discussions to coordinate on energy integration issues.
Stakeholder feedback. U.S. agencies receive feedback on energy integration issues from the private sector and civil society through formal mechanisms such as comments in the Federal Register and public–private advisory entities. For example, the U.S.–Mexico Energy Business Council is designed to capture private sector feedback. Informal feedback comes through activities such as emails, phone calls, and letters.
Steps suggested by U.S., Canadian, and Mexican officials . Officials in the three countries expressed general satisfaction with intergovernmental cooperation on energy integration and said cooperative activities had helped foster integration. They also suggested further work in areas such as aligning energy regulations.
Source: GAO analysis of information provided by U.S, Canadian, and Mexican officials. | GAO-18-575