Promoting Cross-border Energy Infrastructure Act
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Would replace the Presidential permit system for cross-border oil, gas pipeline, and electric transmission projects with a new certificate-of-crossing process run by FERC and the Department of Energy, subject to binding approval deadlines.
It would also bar the President from unilaterally revoking existing Presidential permits for cross-border energy infrastructure without explicit authorization from Congress, shifting power over these approvals from the executive to regulatory agencies.
What this bill would do
What it would do
The bill would establish a new certificate-of-crossing system as the sole approval mechanism for constructing, connecting, operating, or maintaining oil or natural gas pipelines and electric transmission facilities that cross U.S. borders with Canada or Mexico. FERC would issue certificates for oil and gas pipeline crossings, while the Secretary of Energy would handle electric transmission facilities. Both would have 120 days after completion of National Environmental Policy Act review to issue or deny a certificate based on the public interest. For natural gas import and export applications involving Canada or Mexico, FERC would face a 30-day deadline to act. The bill also repeals Section 202(e) of the Federal Power Act, which previously required a separate authorization order for electric energy exports to Canada and Mexico.
The bill would eliminate the Presidential permit requirement for new border-crossing energy facilities entirely, and would prohibit the President from revoking existing Presidential permits issued under specified executive orders unless Congress authorizes the revocation by statute. Facilities already operating or holding a Presidential permit at enactment are exempted from the new certificate requirement. Modifications to existing facilities — including flow reversals, ownership changes, and capacity adjustments — would also require no new certificate.
Key provisions
- 1Would require any person constructing, connecting, operating, or maintaining a border-crossing oil, gas, or electric facility to first obtain a certificate of crossing from FERC (pipelines) or the Secretary of Energy (electric transmission).
- 2Would require FERC or DOE to issue or deny a certificate of crossing within 120 days after final NEPA action, unless the facility is found not in the public interest.
- 3Would require electric transmission facility certificates to include a condition that the facility comply with Electric Reliability Organization, regional entity, and applicable grid-operator standards.
- 4Would amend the Natural Gas Act to require FERC to approve or deny natural gas import or export applications involving Canada or Mexico within 30 days of receiving a complete application.
- 5Would repeal the Federal Power Act Section 202(e) requirement for a separate authorization order before transmitting electric energy to Canada or Mexico.
- 6Would eliminate the Presidential permit requirement for new cross-border oil, gas, and electric facilities, making the certificate-of-crossing the sole required federal authorization.
- 7Would prohibit the President from revoking any Presidential permit for cross-border energy infrastructure issued under specified executive orders without an authorizing act of Congress.
Who would be affected
Companies and project developers seeking to build or operate oil and gas pipelines or electric transmission lines crossing U.S. borders with Canada or Mexico. FERC and the Department of Energy, which would take over approval authority currently exercised by the President. Owners of existing Presidential-permit projects, who would gain protection against unilateral executive revocation. Energy traders and utilities involved in cross-border electricity or natural gas trade.
Why it matters
Developers of cross-border energy infrastructure would gain a more predictable, time-bound permitting process with clear agency accountability and defined deadlines. The prohibition on unilateral Presidential revocation of existing permits provides investment certainty, shielding approved projects from cancellation by executive order. The 30-day deadline for Canada and Mexico natural gas trade approvals could significantly speed up cross-border commerce in natural gas.
What would change
Changes to existing law
Amends Natural Gas Act, 15 U.S.C. § 717b(c) (Sec. 2(b))
Adds a 30-day deadline for FERC to grant natural gas import or export applications involving Canada or Mexico.
Repeals Federal Power Act, Section 202(e), 16 U.S.C. § 824a(e) (Sec. 2(c)(1))
Eliminates the requirement to obtain a Commission authorization order before transmitting electric energy to Canada or Mexico.
Amends Federal Power Act, Section 202(f), 16 U.S.C. § 824a(f) (Sec. 2(c)(2)(A))
Conforming amendment removing reference to the repealed Section 202(e) regarding state regulation limits.
Amends Public Utility Regulatory Policies Act of 1978, Section 602(b), 16 U.S.C. § 824a-4(b) (Sec. 2(c)(2)(B))
Conforming amendment replacing a cross-reference to repealed Federal Power Act Section 202(e) with a Secretary of Energy hearing and findings standard.
Agencies directed to act
Effective dates
- Certificate-of-crossing requirement and related amendments take effect
- FERC and DOE must publish proposed rulemakings for the certificate process
- FERC and DOE must publish final rules for the certificate process
Funding and costs
Congressional Budget Office estimate
CBO estimates H.R. 3062 would have a negligible effect on the federal deficit, with changes to direct spending and revenues each totaling less than $500,000 over the 2025–2035 period.
H.R. 3062 would replace the Presidential permit requirement for cross-border oil, natural gas, and electric transmission infrastructure with a certificate-of-crossing process administered by FERC and the Department of Energy. CBO estimates any increases in offsetting receipts (royalty payments from oil and gas production on federal lands) would total less than $500,000 over 2025–2035, and administrative costs for DOE would be less than $500,000 over 2025–2030, subject to appropriated funds. The bill contains both an intergovernmental mandate and a private-sector mandate — stemming from potential FERC fee increases — but CBO estimates both fall well below the Unfunded Mandates Reform Act thresholds of $103 million and $206 million, respectively.
How implementation would work
FERC and the Secretary of Energy must each publish a proposed rulemaking in the Federal Register within 180 days of enactment and a final rule within one year. The certificate-of-crossing process itself takes effect one year after enactment. Once active, each agency evaluates applications following completion of NEPA review and must issue or deny a certificate within 120 days based on a public-interest standard. DOE must additionally require electric facilities to meet applicable reliability and grid-operator standards as a condition of the certificate. FERC handles the parallel 30-day natural gas trade approval track under an amended Natural Gas Act provision.
Legislative status & sources
Latest action
Received in the Senate and Read twice and referred to the Committee on Energy and Natural Resources.
Official CRS summary
Show the CRS summaryHide the CRS summary
Promoting Cross-border Energy Infrastructure Act
This bill establishes a new process for approving or revoking permits for the construction and operation of energy infrastructure across an international border of the United States. Thus, it replaces the existing process established under specified executive orders.
The bill requires a person to obtain a certificate of crossing before constructing, connecting, operating, or maintaining a border-crossing facility for the import or export of oil or natural gas, or the transmission of electricity, across a U.S. border with Canada or Mexico. A certificate must be obtained from the Federal Energy Regulatory Commission (FERC) for a facility consisting of oil or natural gas pipelines or the Department of Energy (DOE) for an electric transmission facility. As a condition of issuing a certificate, DOE must require that an electric transmission facility be constructed, connected, operated, or maintained consistent with specified policies and standards.
FERC and DOE must meet a deadline for issuing a certificate as set forth by this bill. The bill also requires FERC to meet a deadline for approving applications to import or export natural gas to or from Canada or Mexico.
The bill also requires the President to obtain the approval of Congress before revoking a permit issued under executive orders for constructing, connecting, operating, or maintaining an oil or natural gas pipeline, an electric transmission facility, or a related border-crossing facility.
Legislative subjects
Administrative law and regulatory procedures; Canada; Department of Energy; Electric power generation and transmission; Energy; Environmental assessment, monitoring, research; Federal Energy Regulatory Commission (FERC); Latin America; Licensing and registrations; Mexico; Oil and gas; Pipelines; Trade restrictions
Committee report
H. Rept. 119-186