[House Report 119-186]
[From the U.S. Government Publishing Office]


119th Congress }                                       { Rept.119-186
                        HOUSE OF REPRESENTATIVES
  1st Session   }                                      { Part 1

======================================================================
 
           PROMOTING CROSS-BORDER ENERGY INFRASTRUCTURE ACT

                                _______
                                

  July 2, 2025.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Guthrie, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 3062]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 3062) to establish a more uniform, transparent, 
and modern process to authorize the construction, connection, 
operation, and maintenance of international border-crossing 
facilities for the import and export of oil and natural gas and 
the transmission of electricity, having considered the same, 
reports favorably thereon with an amendment and recommends that 
the bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     4
Background and Need for Legislation..............................     4
Committee Action.................................................     7
Committee Votes..................................................     7
Oversight Findings and Recommendations...........................    10
New Budget Authority, Entitlement Authority, and Tax Expenditures    10
Congressional Budget Office Estimate.............................    10
Federal Mandates Statement.......................................    10
Statement of General Performance Goals and Objectives............    10
Duplication of Federal Programs..................................    10
Related Committee and Subcommittee Hearings......................    10
Committee Cost Estimate..........................................    12
Earmark, Limited Tax Benefits, and Limited Tariff Benefits.......    12
Advisory Committee Statement.....................................    12
Applicability to Legislative Branch..............................    12
Section-by-Section Analysis of the Legislation...................    12
Changes in Existing Law Made by the Bill, as Reported............    13
Minority, Additional, or Dissenting Views........................    22
Exchange of Letters with Additional Committees of Referral.......    25

    The amendment is as follows:
  Striking all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Promoting Cross-border Energy 
Infrastructure Act''.

SEC. 2. STRENGTHENING NORTH AMERICAN ENERGY SECURITY.

  (a) Authorization of Certain Energy Infrastructure Projects at an 
International Boundary of the United States.--
          (1) Authorization.--Except as provided in paragraph (3) and 
        subsection (e), no person may construct, connect, operate, or 
        maintain a border-crossing facility for the import or export of 
        oil or natural gas, or the transmission of electricity, across 
        an international border of the United States without obtaining 
        a certificate of crossing for the border-crossing facility 
        under this subsection.
          (2) Certificate of crossing.--
                  (A) Requirement.--Not later than 120 days after final 
                action is taken, by the relevant official or agency 
                identified under subparagraph (B), under the National 
                Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
                seq.) with respect to a border-crossing facility for 
                which a person requests a certificate of crossing under 
                this subsection, the relevant official or agency, in 
                consultation with appropriate Federal agencies, shall 
                issue a certificate of crossing for the border-crossing 
                facility unless the relevant official or agency finds 
                that the construction, connection, operation, or 
                maintenance of the border-crossing facility is not in 
                the public interest of the United States.
                  (B) Relevant official or agency.--The relevant 
                official or agency referred to in subparagraph (A) is--
                          (i) the Federal Energy Regulatory Commission 
                        with respect to border-crossing facilities 
                        consisting of oil or natural gas pipelines; and
                          (ii) the Secretary of Energy with respect to 
                        border-crossing facilities consisting of 
                        electric transmission facilities.
                  (C) Additional requirement for electric transmission 
                facilities.--In the case of a request for a certificate 
                of crossing for a border-crossing facility consisting 
                of an electric transmission facility, the Secretary of 
                Energy shall require, as a condition of issuing the 
                certificate of crossing under subparagraph (A), that 
                the border-crossing facility be constructed, connected, 
                operated, or maintained consistent with all applicable 
                policies and standards of--
                          (i) the Electric Reliability Organization and 
                        the applicable regional entity; and
                          (ii) any Regional Transmission Organization 
                        or Independent System Operator with operational 
                        or functional control over the border-crossing 
                        facility.
          (3) Exclusions.--This subsection shall not apply to any 
        construction, connection, operation, or maintenance of a 
        border-crossing facility for the import or export of oil or 
        natural gas, or the transmission of electricity--
                  (A) if the border-crossing facility is operating for 
                such import, export, or transmission as of the date of 
                enactment of this Act;
                  (B) if a Presidential permit (or similar permit) for 
                the construction, connection, operation, or maintenance 
                has been issued pursuant to any provision of law or 
                Executive order; or
                  (C) if an application for a Presidential permit (or 
                similar permit) for the construction, connection, 
                operation, or maintenance is pending on the date of 
                enactment of this Act, until the earlier of--
                          (i) the date on which such application is 
                        denied; or
                          (ii) two years after the date of enactment of 
                        this Act, if such a permit has not been issued 
                        by such date of enactment.
          (4) Effect of other laws.--
                  (A) Application to projects.--Nothing in this 
                subsection or subsection (e) shall affect the 
                application of any other Federal statute to a project 
                for which a certificate of crossing for a border-
                crossing facility is requested under this subsection.
                  (B) Natural gas act.--Nothing in this subsection or 
                subsection (e) shall affect the requirement to obtain 
                approval or authorization under sections 3 and 7 of the 
                Natural Gas Act for the siting, construction, or 
                operation of any facility to import or export natural 
                gas.
                  (C) Oil pipelines.--Nothing in this subsection or 
                subsection (e) shall affect the authority of the 
                Federal Energy Regulatory Commission with respect to 
                oil pipelines under section 60502 of title 49, United 
                States Code.
  (b) Importation or Exportation of Natural Gas to Canada and Mexico.--
Section 3(c) of the Natural Gas Act (15 U.S.C. 717b(c)) is amended by 
adding at the end the following: ``In the case of an application for 
the importation of natural gas from, or the exportation of natural gas 
to, Canada or Mexico, the Commission shall grant the application not 
later than 30 days after the date on which the Commission receives the 
complete application.''.
  (c) Transmission of Electric Energy to Canada and Mexico.--
          (1) Repeal of requirement to secure order.--Section 202(e) of 
        the Federal Power Act (16 U.S.C. 824a(e)) is repealed.
          (2) Conforming amendments.--
                  (A) State regulations.--Section 202(f) of the Federal 
                Power Act (16 U.S.C. 824a(f)) is amended by striking 
                ``insofar as such State regulation does not conflict 
                with the exercise of the Commission's powers under or 
                relating to subsection 202(e)''.
                  (B) Seasonal diversity electricity exchange.--Section 
                602(b) of the Public Utility Regulatory Policies Act of 
                1978 (16 U.S.C. 824a-4(b)) is amended by striking ``the 
                Commission has conducted hearings and made the findings 
                required under section 202(e) of the Federal Power 
                Act'' and all that follows through the period at the 
                end and inserting ``the Secretary has conducted 
                hearings and finds that the proposed transmission 
                facilities would not impair the sufficiency of electric 
                supply within the United States or would not impede or 
                tend to impede the coordination in the public interest 
                of facilities subject to the jurisdiction of the 
                Secretary.''.
  (d) No Presidential Permit Required.--No Presidential permit (or 
similar permit) shall be required pursuant to any provision of law or 
Executive order for the construction, connection, operation, or 
maintenance of an oil or natural gas pipeline or electric transmission 
facility, or any border-crossing facility thereof.
  (e) Modifications to Existing Projects.--No certificate of crossing 
under subsection (a), or Presidential permit (or similar permit), shall 
be required for a modification to--
          (1) an oil or natural gas pipeline or electric transmission 
        facility that is operating for the import or export of oil or 
        natural gas or the transmission of electricity as of the date 
        of enactment of this Act;
          (2) an oil or natural gas pipeline or electric transmission 
        facility for which a Presidential permit (or similar permit) 
        has been issued pursuant to any provision of law or Executive 
        order; or
          (3) a border-crossing facility for which a certificate of 
        crossing has previously been issued under subsection (a).
  (f) Prohibition on Revocation of Presidential Permits.--
Notwithstanding any other provision of law, the President may not 
revoke a Presidential permit (or similar permit) issued pursuant to 
Executive Order No. 13337 (3 U.S.C. 301 note), Executive Order No. 
11423 (3 U.S.C. 301 note), Executive Order No. 12038 (42 U.S.C. 7151 
note), Executive Order No. 10485 (15 U.S.C. 717b note), or any other 
Executive order for the construction, connection, operation, or 
maintenance of an oil or natural gas pipeline or electric transmission 
facility, or any border-crossing facility thereof, unless such 
revocation is authorized by an Act of Congress.
  (g) Effective Date; Rulemaking Deadlines.--
          (1) Effective date.--Subsections (a) through (e), and the 
        amendments made by such subsections, shall take effect on the 
        date that is 1 year after the date of enactment of this Act.
          (2) Rulemaking deadlines.--Each relevant official or agency 
        described in subsection (a)(2)(B) shall--
                  (A) not later than 180 days after the date of 
                enactment of this Act, publish in the Federal Register 
                notice of a proposed rulemaking to carry out the 
                applicable requirements of subsection (a); and
                  (B) not later than 1 year after the date of enactment 
                of this Act, publish in the Federal Register a final 
                rule to carry out the applicable requirements of 
                subsection (a).
  (h) Definitions.--In this section:
          (1) Border-crossing facility.--The term ``border-crossing 
        facility'' means the portion of an oil or natural gas pipeline 
        or electric transmission facility that is located within 1,000 
        feet of the international boundary of the United States, 
        measured from the point at which the facility crosses such 
        boundary into the United States.
          (2) Modification.--The term ``modification'' includes a 
        reversal of flow direction, change in ownership, change in flow 
        volume, addition or removal of an interconnection, or an 
        adjustment to maintain flow (such as a reduction or increase in 
        the number of pump or compressor stations).
          (3) Natural gas.--The term ``natural gas'' has the meaning 
        given that term in section 2 of the Natural Gas Act (15 U.S.C. 
        717a).
          (4) Oil.--The term ``oil'' means petroleum or a petroleum 
        product.
          (5) Electric reliability organization; regional entity.--The 
        terms ``Electric Reliability Organization'' and ``regional 
        entity'' have the meanings given those terms in section 215 of 
        the Federal Power Act (16 U.S.C. 824o).
          (6) Independent system operator; regional transmission 
        organization.--The terms ``Independent System Operator'' and 
        ``Regional Transmission Organization'' have the meanings given 
        those terms in section 3 of the Federal Power Act (16 U.S.C. 
        796).

                          Purpose and Summary

    H.R. 3062, the ``Promoting Cross-border Energy 
Infrastructure Act,'' was introduced by Rep. Fedorchak (R-ND) 
on April 29, 2025. H.R. 3062 would establish a more uniform, 
transparent, and modern process to authorize the construction, 
connection, operation, and maintenance of international border-
crossing facilities for the import and export of oil and 
natural gas and the transmission of electricity. The 
legislation would replace the existing Presidential Permit 
process that has been established through Executive Order with 
a statutorily directed process. Under the legislation, the 
Federal Energy Regulatory Commission (FERC) would be authorized 
to review applications for cross-border oil and natural gas 
pipelines, and DOE would be authorized to review applications 
for cross-border electric transmission facilities.

                  Background and Need for Legislation

    Trade of oil, gas, and electricity among the United States, 
Canada, and Mexico has resulted in one large, integrated North 
American market. In 2024, the value of energy trade between the 
United States and its North American partners exceeded $1 
trillion.\1\\2\ The expansion of cross-border energy 
transportation infrastructure--pipelines for oil and natural 
gas and transmission lines for electricity--is necessary to 
enable increased energy trade. A number of new projects are 
proposed to further expand cross-border capacity, but they face 
considerable Federal regulatory uncertainty.
---------------------------------------------------------------------------
    \1\Office of the United States Trade Representative. Mexico Trade 
Summary. USTR, 2023. https://ustr.gov/countries-regions/americas/
mexico.
    \2\Office of the United States Trade Representative. Canada Trade 
Summary. USTR, 2023. https://ustr.gov/countries-regions/americas/
canada.
---------------------------------------------------------------------------
    Congress has not asserted its authority to establish 
procedures for permitting cross-border energy infrastructure. 
In the absence of a statutorily directed process, agencies have 
made decisions regarding cross-border energy infrastructure 
within the context of their interpretations of a series of 
Executive Orders dating back to the 1950's. Under these Orders, 
the Secretary of State has the authority to issue Presidential 
permits for cross-border liquids pipelines, the FERC for cross-
border natural gas pipelines, and the DOE for cross-border 
electric transmission facilities.
    The U.S. currently has over 40 cross-border electric 
transmission lines between the U.S. and Canada and the U.S. and 
Mexico. These interconnections--the majority of which are 
located at the Canadian border--have improved reliability, fuel 
diversity, and efficiencies in system operations, particularly 
for the New England, New York, and Midwest regions. Over the 
last decade, the U.S. has experienced growing net electricity 
imports from both Canada and Mexico, although Canada is by far 
the greater trading partner. Future cross-border electricity 
trade will be a function of both the development of future 
generation capacity and the availability of cross-border 
transmission infrastructure to move electric power. Under 
current law, applications for new transmission projects will be 
required to obtain a Presidential Permit and an export 
authorization from the Secretary of Energy. There are currently 
18 pending export authorization applications and five pending 
Presidential Permit applications before DOE.\3\
---------------------------------------------------------------------------
    \3\DOE, Grid Deployment Office, ``Pending Application.''
---------------------------------------------------------------------------
    There are over 50 operating natural gas pipelines between 
the U.S. and Canada and the U.S. and Mexico. Over the last five 
years, natural gas pipeline capacity between the U.S. and 
Mexico has grown significantly. According to the Energy 
Information Administration (EIA), U.S. natural gas pipeline 
exports to Mexico averaged a record 6.8 billion cubic feet per 
day (bcf/d) in June 2023, surpassing the previous record set in 
June 2021.\4\
---------------------------------------------------------------------------
    \4\Energy Information Administration. U.S. Natural Gas Pipeline 
Exports to Mexico Averaged a Record High in 2023. EIA, 6 June 2024. 
https://www.eia.gov/todayinenergy/
detail.php?id=60120.
---------------------------------------------------------------------------
    Under the current process to construct and operate a cross-
border natural gas pipeline, any person seeking to construct 
and operate such facility must obtain two, separate 
authorizations from FERC for the facility and an authorization 
under section 3 of the Natural Gas Act (NGA) is necessary for 
siting, construction, or operation of facilities to import or 
export natural gas. In addition, pursuant to Executive Order 
10485 (September 3, 1954) as amended by Executive Order 12038 
(February 3, 1978), a Presidential Permit also must be obtained 
for the cross-border portion of the pipeline. Any person 
seeking to import or export natural gas must also obtain a 
separate authorization from DOE under section 3 of the NGA.\5\ 
For imports and exports to countries with which the U.S. has a 
Free Trade Agreement, such as Canada and Mexico, DOE is 
required to grant requests ``without modification or delay.''
---------------------------------------------------------------------------
    \5\15 United States Code Sec. 717b.
---------------------------------------------------------------------------
    Executive Order 12038 provides that, before a Presidential 
Permit is issued, there must be a finding that the action is 
consistent with the public interest. The criteria used for 
determining if an application is consistent with the public 
interest is identical to the criteria for approving 
applications for the siting, construction, and operation of 
import and export facilities under section 3 of the NGA.
    For ``border facilities'' subject to Presidential Permit 
and NGA section 3 review, discretion is given to FERC on a 
project-by-project basis to determine the exact scope of the 
project review, and therefore the exact parameters of the 
Presidential Permit and section 3 application. FERC looks for a 
physical feature on a project, such as a valve or meter on the 
interior side of the U.S. border, as an end-point for what may 
be considered to lie within the Commission's jurisdiction and, 
therefore, subject to its review procedures. From the physical 
feature, the border crossing facilities would be construed to 
extend to either the U.S./Canada or the U.S./Mexico border.
    Crude oil trade between the U.S. and its North American 
trading partners is significant. Under the current process, any 
person seeking to construct and operate an international cross-
border oil pipeline must obtain a Presidential Permit pursuant 
to Executive Order 13337 from the Department of State. Under 
Executive Order 13337, the Secretary of State is to approve 
cross-border oil pipelines that have been determined to ``serve 
the national interest.'' Although the Department of State will 
not necessarily evaluate the same factors for each application 
for a Presidential Permit, its evaluation considers such things 
as the environmental impacts of the proposed project 
(associated closely with the compliance with the National 
Environmental Policy Act (NEPA)), the stability of trading 
partners from whom the U.S. obtains crude oil, the security of 
transport pathways for crude oil supplies to the U.S., and the 
economic benefits to the U.S.
    The Committee finds that cross-border permitting authority 
should be explicitly granted by statute, as opposed to the 
current framework created entirely by the Executive Branch. The 
Committee is concerned by the inconsistent, ad hoc manner in 
which Presidential Permit authority has been exercised among 
the agencies to which it has been delegated by Executive Order. 
This issue came into particular focus in the context of the 
State Department's review of the Keystone XL pipeline proposal, 
which originally applied for a Presidential Permit in 2008 and 
did not receive approval until 2017, and subsequently had its 
Presidential Permit revoked by President Biden in January 2021. 
The Committee also finds that removing the Presidential Permit 
authority from the executive branch will grant increased 
regulatory certainty to cross-border facilities that have 
already been issued a Presidential Permit.
    The Committee finds that the statutorily directed process 
for cross-border permitting embodied in H.R. 3062 would lead to 
more objective and timely decisions, which in turn would create 
jobs, strengthen our nation's energy security, and support 
affordable and reliable energy for Americans.
    H.R. 3062 would replace the Presidential Permit requirement 
with a more transparent, efficient, and effective review 
process. The legislation would require those seeking to 
construct, connect, operate, or maintain a border-crossing 
facility for the import or export of oil or natural gas, or the 
transmission of electricity, to obtain a Certificate of 
Crossing. The term ``border-crossing facility'' and thus what 
may be considered jurisdictional for the purposes of the 
Certificate of Crossing review, means the portion of the 
pipeline or transmission facility that is located within 1,000 
feet of an international boundary. This description is 
consistent with FERC's established procedures for review of 
Presidential Permit and NGA section 3 applications. Under the 
legislation, the relevant official would issue the certificate 
of crossing unless it is found that the construction, 
connection, operation, or maintenance of border facilities 
comprising the cross-border segment is not in the public 
interest of the United States. Consistent with FERC's existing 
procedures for review of cross-border gas pipelines, the cross-
border segment of the border crossing facility would be 
identified as the segment spanning from the international 
boundary to a physical feature within 1,000 feet, such as a 
valve or meter. This legislation would have no effect on the 
requirement to obtain approval or authorization under sections 
3 and 7 of the NGA or the authorities of FERC with respect to 
the siting of oil pipelines upstream or downstream of a border 
crossing facility. The legislation would also have no effect on 
any other Federal statute that would apply to a project for 
which a Certificate of Crossing is required, including any 
requirements of NEPA.

                            Committee Action

    On April 30, 2025, the Subcommittee on Energy held a 
legislative hearing on 14 pieces of legislation, including H.R. 
3062. The Subcommittee received testimony from:
           Mike Goff, Acting Undersecretary of Energy, 
        U.S. Department of Energy;
           David L. Morenoff, Acting General Counsel, 
        Federal Energy Regulatory Commission;
           Terry Turpin, Director, Office of Energy 
        Projects, Federal Energy Regulatory Commission;
           Jim Matheson, Chief Executive Officer, 
        National Rural Electric Cooperative Association;
           Amy Andryszak, President and Chief Executive 
        Officer, Interstate Natural Gas Association of America;
           Todd A. Snitchler, President and Chief 
        Executive Officer, Electric Power Supply Association 
        and;
           Kim Smaczniak, Partner, Roselle LLP.
    On June 5, 2025, the Subcommittee on Energy met in open 
markup session and forwarded H.R. 3062, as amended, to the full 
Committee by a record vote of 16 yeas and 13 nays.
    On June 25, 2025, the full Committee on Energy and Commerce 
met in open markup session and ordered H.R. 3062, without 
amendment, favorably reported to the House by a record vote of 
28 yeas and 23 nays.

                            Committee Votes

    Clause 3(b) of rule XIII requires the Committee to list the 
record votes on the motion to report legislation and amendments 
thereto. The following reflects the record votes taken during 
both the Subcommittee and Committee consideration:


                 Oversight Findings and Recommendations

    Pursuant to clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII, the Committee held hearings and made findings that 
are reflected in this report.

             New Budget Authority, Entitlement Authority, 
                          and Tax Expenditures

    Pursuant to clause 3(c)(2) of rule XIII, the Committee 
finds that H.R. 3062 would result in no new or increased budget 
authority, entitlement authority, or tax expenditures or 
revenues.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII, at the time this 
report was filed, the cost estimate prepared by the Director of 
the Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974 was not available.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII, the general 
performance goal or objective of this legislation is to 
establish coordinated procedures to authorize the construction, 
connection, operation, and maintenance of international border-
crossing facilities for the import and export of oil and 
natural gas and the transmission of electricity.

                    Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII, no provision of 
H.R. 3062 is known to be duplicative of another Federal 
program, including any program that was included in a report to 
Congress pursuant to section 21 of Public Law 111-139 or the 
most recent Catalog of Federal Domestic Assistance.

              Related Committee and Subcommittee Hearings

    Pursuant to clause 3(c)(6) of rule XIII, the following 
related hearings were used to develop or consider H.R. 3062:
    On February 5, 2025, the Subcommittee on Energy held a 
hearing on H.R. 3062. The title of the hearing was ``Powering 
America's Future: Unleashing American Energy.'' The 
Subcommittee received testimony from:
           Amanda Eversole, Executive Vice President 
        and Chief Advocacy Officer, American Petroleum 
        Institute;
           Brigham McCown, Senior Fellow and Director, 
        Initiative on American Energy Security, The Hudson 
        Institute;
           Gary Arnold, Business Manager, Denver 
        Pipefitters Local 208 and;
           Tyler O'Connor, Partner, Crowell & Moring 
        LLP.
    On March 5, 2025, the Subcommittee on Energy held a hearing 
on H.R. 3062. The title of the hearing was ``Scaling for 
Growth: Meeting the Demand for Reliable, Affordable 
Electricity.'' The Subcommittee received testimony from:
           Todd Brickhouse, CEO and General Manager, 
        Basin Electric Power Cooperative;
           Asim Haque, Senior Vice President for 
        Governmental and Member Services, PJM;
           Noel W. Black, Senior VP of Regulatory 
        Affairs, Southern Company and;
           Tyler H. Norris, James B. Duke Fellow, Duke 
        University.
    On March 25, 2025, the Subcommittee on Energy held a 
hearing on H.R. 3062. The title of the hearing was ``Keeping 
the Lights On: Examining the State of Regional Grid 
Reliability.'' The Subcommittee received testimony from:
           Gordon van Welie, President and Chief 
        Executive Officer, ISO New England;
           Richard J. Dewey, President and Chief 
        Executive Officer, New York Independent System 
        Operator;
           Manu Asthana, President and Chief Executive 
        Officer, PJM Interconnection LLC;
           Jennifer Curran, Senior Vice President for 
        Planning and Operations, Midcontinent ISO;
           Lanny Nickell, Chief Operating Officer, 
        Southwest Power Pool;
           Elliot Mainzer, President and Chief 
        Executive Officer, California Independent System 
        Operator and;
           Pablo Vegas President and Chief Executive 
        Officer, Electric Reliability Council of Texas, Inc.
    On April 9, 2025, the Committee on Energy and Commerce held 
a full Committee hearing on H.R. 3062. The title of the hearing 
was ``The Energy Needs for Advancing American Technological 
Leadership.'' The Committee received testimony from:
           Eric Schmidt, Chair, Special Competitive 
        Studies Project;
           Manish Bhatia, Executive Vice President of 
        Global Operations, Micron Technology;
           Alexander Wang, Founder and Chief Executive 
        Officer, Scale AI, and;
           David Turk, Distinguished Visiting Fellow, 
        Center on Global Energy Policy, Columbia University.
    On April 30, 2025, the Subcommittee on Energy held a 
legislative hearing on H.R. 3062. The title of the hearing was 
``Assuring Abundant, Reliable American Energy to Power 
Innovation.'' The Subcommittee received testimony from:
           Mike Goff, Acting Undersecretary of Energy, 
        U.S. Department of Energy;
           David L. Morenoff, Acting General Counsel, 
        Federal Energy Regulatory Commission;
           Terry Turpin, Director, Office of Energy 
        Projects, Federal Energy Regulatory Commission;
           Jim Matheson, Chief Executive Officer, 
        National Rural Electric Cooperative Association;
           Amy Andryszak, President and Chief Executive 
        Officer, Interstate Natural Gas Association of America;
           Todd A. Snitchler, President and Chief 
        Executive Officer, Electric Power Supply Association 
        and;
           Kim Smaczniak, Partner, Roselle LLP.

                        Committee Cost Estimate

    Pursuant to clause 3(d)(1) of rule XIII, the Committee 
adopts as its own the cost estimate prepared by the Director of 
the Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974. At the time this report was 
filed, the estimate was not available.

       Earmark, Limited Tax Benefits, and Limited Tariff Benefits

    Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the 
Committee finds that H.R. 3062 contains no earmarks, limited 
tax benefits, or limited tariff benefits.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    This section provides the short title of ``Promoting Cross-
Border Energy Infrastructure Act.''

Section 2. Approval for border-crossing facilities

    Section 2(a)(1) provides that no person may construct, 
connect, operate, or maintain a border-crossing facility for 
the import or export of oil or natural gas, or the transmission 
of electricity, across an international border of the United 
States without obtaining a certificate of crossing.
    Section 2(a)(2) instructs relevant officials or agencies, 
in consultation with appropriate Federal agencies, to issue a 
certificate of crossing for a border-crossing facility within 
120 days after final action is taken, unless the relevant 
official or agency finds that the construction, connection, 
operation, or maintenance of the border-crossing facility is 
not in the public interest of the United States. The relevant 
official or agency with respect to border-crossing facilities 
consisting of oil or natural gas pipelines is the Federal 
Energy Regulatory Commission. The relevant official or agency 
with respect to electric transmission facilities is the 
Secretary of Energy. This section also provides additional 
requirements for electric transmission facilities.
    Section 2(a)(3) instructs that subsection (a) shall not 
apply to border-crossing facilities that are in operation on 
the date of enactment of this Act if a permit as described in 
subsection (d) has been issued, or if a permit as described in 
subsection (d) is pending and meets certain requirements.
    Section 2(a)(4) specifies that nothing in subsection (a) or 
subsection (e) shall affect the application of any other 
Federal statute to a project for which a certificate of 
crossing for a border-crossing facility is requested; the 
requirement to obtain approval or authorization under sections 
3 and 7 of the NGA or the authority of the FERC with respect to 
oil pipelines under section 60502 of title 49, United States 
Code.
    Section 2(b) amends section 3(c) of the NGA directing FERC 
to grant an application for the importation of natural gas 
from, or exportation of natural gas to, Canada and Mexico not 
later than 30 days after the date on which the Commission 
receives the complete application.
    Section 2(c) repeals section 202(e) of the Federal Power 
Act, eliminating the requirement to secure an order from FERC 
to transmit electric energy from the United States to a foreign 
country. This section also contains conforming amendments 
related to State regulations and seasonal diversity electricity 
exchange.
    Section 2(d) specifies that no Presidential Permit 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 border-
crossing facility.
    Section 2(e) directs that no certificate of crossing under 
subsection (a) or permit described in subsection (d) shall be 
required for a modification to an oil or natural gas pipeline 
or electric transmission facility that is operating for the 
import or export of energy as of the date of enactment of this 
Act. Additionally, a certificate of crossing or a permit shall 
not be required for a modification to an oil or natural gas 
pipeline or electric transmission facility for which a permit 
described in subsection (d) has been issued, or for which a 
certificate of crossing has previously been issued under 
subsection (a).
    Section 2(f) specifies that the President may not revoke a 
Presidential permit issued pursuant to a relevant Executive 
Order for the construction, connection, operation, or 
maintenance of an oil or natural gas pipeline or electric 
transmission facility unless such revocation is authorized by 
Congress.
    Section 2(g) specifies that subsections (a) through (c) 
shall take effect on the date that is one year after the date 
of enactment of this Act. Each relevant official or agency 
shall publish in the Federal Register a notice of a proposed 
rulemaking to carry out the requirements of subsection (a) 
within 180 days after the date of enactment of this Act. Not 
later than one year after the date of enactment, the relevant 
officials or agencies shall publish a final rule in the Federal 
Register.
    Section 2(h) provides definitions for terms used throughout 
this section.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                            NATURAL GAS ACT



           *       *       *       *       *       *       *
        exportation or importation of natural gas; lng terminals

  Sec. 3. (a) After six months from the date on which this act 
takes effect no person shall export any natural gas from the 
United States to a foreign country or import any natural gas 
from a foreign country without first having secured an order of 
the Commission authorizing it to do so. The Commission shall 
issue such order upon application, unless, after opportunity 
for hearing, it finds that the proposed exportation or 
importation will not be consistent with the public interest. 
The Commission may by its order grant such application, in 
whole or in part, with such modification and upon such terms 
and conditions as the Commission may find necessary or 
appropriate, and may from time to time, after opportunity for 
hearing, and for good cause shown, make such supplemental order 
in the premises as it may find necessary or appropriate.
  (b) With respect to natural gas which is imported into the 
United States from a nation with which there is in effect a 
free trade agreement requiring national treatment for trade in 
natural gas, and with respect to liquefied natural gas--
          (1) the importation of such natural gas shall be 
        treated as a ``first sale'' within the meaning of 
        section 2(21) of the Natural Gas Policy Act of 1978; 
        and
          (2) the Commission shall not, on the basis of 
        national origin, treat any such imported natural gas on 
        an unjust, unreasonable, unduly discriminatory, or 
        preferential basis.
  (c) For purposes of subsection (a), the importation of the 
natural gas referred to in subsection (b), or the exportation 
of natural gas to a nation with which there is in effect a free 
trade agreement requiring national treatment for trade in 
natural gas, shall be deemed to be consistent with the public 
interest, and applications for such importation or exportation 
shall be granted without modification or delay. In the case of 
an application for the importation of natural gas from, or the 
exportation of natural gas to, Canada or Mexico, the Commission 
shall grant the application not later than 30 days after the 
date on which the Commission receives the complete application.
  (d) Except as specifically provided in this Act, nothing in 
this Act affects the rights of States under--
          (1) the Coastal Zone Management Act of 1972 (16 
        U.S.C. 1451 et seq.);
          (2) the Clean Air Act (42 U.S.C. 7401 et seq.); or
          (3) the Federal Water Pollution Control Act (33 
        U.S.C. 1251 et seq.).
  (e)(1) The Commission shall have the exclusive authority to 
approve or deny an application for the siting, construction, 
expansion, or operation of an LNG terminal. Except as 
specifically provided in this Act, nothing in this Act is 
intended to affect otherwise applicable law related to any 
Federal agency's authorities or responsibilities related to LNG 
terminals.
  (2) Upon the filing of any application to site, construct, 
expand, or operate an LNG terminal, the Commission shall--
          (A) set the matter for hearing;
          (B) give reasonable notice of the hearing to all 
        interested persons, including the State commission of 
        the State in which the LNG terminal is located and, if 
        not the same, the Governor-appointed State agency 
        described in section 3A;
          (C) decide the matter in accordance with this 
        subsection; and
          (D) issue or deny the appropriate order accordingly.
  (3)(A) Except as provided in subparagraph (B), the Commission 
may approve an application described in paragraph (2), in whole 
or part, with such modifications and upon such terms and 
conditions as the Commission find necessary or appropriate.
  (B) Before January 1, 2015, the Commission shall not--
          (i) deny an application solely on the basis that the 
        applicant proposes to use the LNG terminal exclusively 
        or partially for gas that the applicant or an affiliate 
        of the applicant will supply to the facility; or
          (ii) condition an order on--
                  (I) a requirement that the LNG terminal offer 
                service to customers other than the applicant, 
                or any affiliate of the applicant, securing the 
                order;
                  (II) any regulation of the rates, charges, 
                terms, or conditions of service of the LNG 
                terminal; or
                  (III) a requirement to file with the 
                Commission schedules or contracts related to 
                the rates, charges, terms, or conditions of 
                service of the LNG terminal.
  (C) Subparagraph (B) shall cease to have effect on January 1, 
2030.
  (4) An order issued for an LNG terminal that also offers 
service to customers on an open access basis shall not result 
in subsidization of expansion capacity by existing customers, 
degradation of service to existing customers, or undue 
discrimination against existing customers as to their terms or 
conditions of service at the facility, as all of those terms 
are defined by the Commission.
  (f)(1) In this subsection, the term ``military 
installation''--
          (A) means a base, camp, post, range, station, yard, 
        center, or homeport facility for any ship or other 
        activity under the jurisdiction of the Department of 
        Defense, including any leased facility, that is located 
        within a State, the District of Columbia, or any 
        territory of the United States; and
          (B) does not include any facility used primarily for 
        civil works, rivers and harbors projects, or flood 
        control projects, as determined by the Secretary of 
        Defense.
  (2) The Commission shall enter into a memorandum of 
understanding with the Secretary of Defense for the purpose of 
ensuring that the Commission coordinate and consult with the 
Secretary of Defense on the siting, construction, expansion, or 
operation of liquefied natural gas facilities that may affect 
an active military installation.
  (3) The Commission shall obtain the concurrence of the 
Secretary of Defense before authorizing the siting, 
construction, expansion, or operation of liquefied natural gas 
facilities affecting the training or activities of an active 
military installation.

           *       *       *       *       *       *       *

                              ----------                              


                           FEDERAL POWER ACT



           *       *       *       *       *       *       *
PART II--REGULATION OF ELECTRIC UTILITY COMPANIES ENGAGED IN INTERSTATE 
COMMERCE

           *       *       *       *       *       *       *


     interconnection and coordination of facilities; emergencies; 
                   transmission to foreign countries

  Sec. 202. (a) For the purpose of assuring an abundant supply 
of electric energy throughout the United States with the 
greatest possible economy and with regard to the proper 
utilization and conservation of natural resources, the 
Commission is empowered and directed to divide the country into 
regional districts for the voluntary interconnection and 
coordination of facilities for the generation, transmission, 
and sale of electric energy, and it may at any time thereafter, 
upon its own motion or upon application, make such 
modifications thereof as in its judgment will promote the 
public interest. Each such district shall embrace an area 
which, in the judgment of the Commission, can economically be 
served by such interconnected and coordinated electric 
facilities. It shall be the duty of the Commission to promote 
and encourage such interconnection and coordination within each 
such district and between such districts. Before establishing 
any such district and fixing or modifying the boundaries 
thereof the Commission shall give notice to the State 
commission of each State situated wholly or in part within such 
district, and shall afford each such State commission 
reasonable opportunity to present its views and 
recommendations, and shall receive and consider such views and 
recommendations.
  (b) Whenever the Commission, upon application of any State 
commission or of any person engaged in the transmission or sale 
of electric energy, and after notice to each State commission 
and public utility affected and after opportunity for hearing, 
finds such action necessary or appropriate in the public 
interest it may by order direct a public utility (if the 
Commission finds that no undue burden will be placed upon such 
public utility thereby) to establish physical connection of its 
transmission facilities with the facilities of one or more 
other persons engaged in the transmission or sale of electric 
energy, to sell energy to or exchange energy with such persons: 
Provided, That the Commission shall have no authority to compel 
the enlargement of generating facilities for such purposes, nor 
to compel such public utility to sell or exchange energy when 
to do so would impair its ability to render adequate service to 
its customers. The Commission may prescribe the terms and 
conditions of the arrangement to be made between the persons 
affected by any such order, including the apportionment of cost 
between them and the compensation or reimbursement reasonably 
due to any of them.
  (c)(1) During the continuance of any war in which the United 
States is engaged, or whenever the Commission determines that 
an emergency exists by reason of a sudden increase in the 
demand for electric energy, or a shortage of electric energy or 
of facilities for the generation or transmission of electric 
energy, or of fuel or water for generating facilities, or other 
causes, the Commission shall have authority, either upon its 
own motion or upon complaint, with or without notice, hearing, 
or report, to require by order such temporary connections of 
facilities and such generation, delivery, interchange, or 
transmission of electric energy as in its judgment will best 
meet the emergency and serve the public interest. If the 
parties affected by such order fail to agree upon the terms of 
any arrangement between them in carrying out such order, the 
Commission, after hearing held either before or after such 
order takes effect, may prescribe by supplemental order such 
terms as it finds to be just and reasonable, including the 
compensation or reimbursement which should be paid to or by any 
such party.
  (2) With respect to an order issued under this subsection 
that may result in a conflict with a requirement of any 
Federal, State, or local environmental law or regulation, the 
Commission shall ensure that such order requires generation, 
delivery, interchange, or transmission of electric energy only 
during hours necessary to meet the emergency and serve the 
public interest, and, to the maximum extent practicable, is 
consistent with any applicable Federal, State, or local 
environmental law or regulation and minimizes any adverse 
environmental impacts.
  (3) To the extent any omission or action taken by a party, 
that is necessary to comply with an order issued under this 
subsection, including any omission or action taken to 
voluntarily comply with such order, results in noncompliance 
with, or causes such party to not comply with, any Federal, 
State, or local environmental law or regulation, such omission 
or action shall not be considered a violation of such 
environmental law or regulation, or subject such party to any 
requirement, civil or criminal liability, or a citizen suit 
under such environmental law or regulation.
  (4)(A) An order issued under this subsection that may result 
in a conflict with a requirement of any Federal, State, or 
local environmental law or regulation shall expire not later 
than 90 days after it is issued. The Commission may renew or 
reissue such order pursuant to paragraphs (1) and (2) for 
subsequent periods, not to exceed 90 days for each period, as 
the Commission determines necessary to meet the emergency and 
serve the public interest.
  (B) In renewing or reissuing an order under subparagraph (A), 
the Commission shall consult with the primary Federal agency 
with expertise in the environmental interest protected by such 
law or regulation, and shall include in any such renewed or 
reissued order such conditions as such Federal agency 
determines necessary to minimize any adverse environmental 
impacts to the extent practicable. The conditions, if any, 
submitted by such Federal agency shall be made available to the 
public. The Commission may exclude such a condition from the 
renewed or reissued order if it determines that such condition 
would prevent the order from adequately addressing the 
emergency necessitating such order and provides in the order, 
or otherwise makes publicly available, an explanation of such 
determination.
  (5) If an order issued under this subsection is subsequently 
stayed, modified, or set aside by a court pursuant to section 
313 or any other provision of law, any omission or action 
previously taken by a party that was necessary to comply with 
the order while the order was in effect, including any omission 
or action taken to voluntarily comply with the order, shall 
remain subject to paragraph (3).
  (d) During the continuance of any emergency requiring 
immediate action, any person or municipality engaged in the 
transmission or sale of electric energy and not otherwise 
subject to the jurisdiction of the Commission may make such 
temporary connections with any public utility subject to the 
jurisdiction of the Commission or may construct such temporary 
facilities for the transmission of electric energy in 
interstate commerce as may be necessary or appropriate to meet 
such emergency, and shall not become subject to the 
jurisdiction of the Commission by reason of such temporary 
connection or temporary construction: Provided, That such 
temporary connection shall be discontinued or such temporary 
construction removed or otherwise disposed of upon the 
termination of such emergency: Provided further, That upon 
approval of the Commission permanent connections for emergency 
use only may be made hereunder.
  [(e) After six months from the date on which this Part takes 
effect, no person shall transmit any electric energy from the 
United States to a foreign country without first having secured 
an order of the Commission authorizing it to do so. The 
Commission shall issue such order upon application unless, 
after opportunity for hearing, it finds that the proposed 
transmission would impair the sufficiency of electric supply 
within the United States or would impede or tend to impede the 
coordination in the public interest of facilities subject to 
the jurisdiction of the Commission. The Commission may by its 
order grant such application in whole or in part, with such 
modifications and upon such terms and conditions as the 
Commission may find necessary or appropriate, and may from time 
to time, after opportunity for hearing and for good cause 
shown, make such supplemental orders in the premises as it may 
find necessary or appropriate.]
  (f) The ownership or operation of facilities for the 
transmission or sale at wholesale of electric energy which is 
(a) generated within a State and transmitted from that State 
across an international boundary and not thereafter transmitted 
into any other State, or (b) generated in a foreign country and 
transmitted across an international boundary into a State and 
not thereafter transmitted into any other State, shall not make 
a person a public utility subject to regulation as such under 
other provisions of this part. The State within which any such 
facilities are located may regulate any such transaction 
[insofar as such State regulation does not conflict with the 
exercise of the Commission's powers under or relating to 
subsection 202(e)].
  (g) In order to insure continuity of service to customers of 
public utilities, the Commission shall require by rule, each 
public utility to--
          (1) report promptly to the Commission and any 
        appropriate State regulatory authorities any 
        anticipated shortage of electric energy or capacity 
        which would affect such utility's capability of serving 
        its wholesale customers,
          (2) submit to the Commission, and to any appropriate 
        State regulatory authority, and periodically revise, 
        contingency plans respecting--
                  (A) shortages of electric energy or capacity, 
                and
                  (B) circumstances which may result in such 
                shortages, and
          (3) accommodate any such shortages or circumstances 
        in a manner which shall--
                  (A) give due consideration to the public 
                health, safety, and welfare, and
                  (B) provide that all persons served directly 
                or indirectly by such public utility will be 
                treated, without undue prejudice or 
                disadvantage.

           *       *       *       *       *       *       *

                              ----------                              


             PUBLIC UTILITY REGULATORY POLICIES ACT OF 1978



           *       *       *       *       *       *       *
TITLE VI--MISCELLANEOUS PROVISIONS

           *       *       *       *       *       *       *


SEC. 602. SEASONAL DIVERSITY ELECTRICITY EXCHANGE.

  (a) Authority.--The Secretary may acquire rights-of-way by 
purchase, including eminent domain, through North Dakota, South 
Dakota, and Nebraska for transmission facilities for the 
seasonal diversity exchange of electric power to and from 
Canada if he determines--
          (1) after opportunity for public hearing--
                  (A) that the exchange is in the public 
                interest and would further the purposes 
                referred to in section 101 (1) and (2) of this 
                Act and that the acquisition of such rights-of-
                way and the construction and operation of such 
                transmission facilities for such purposes is 
                otherwise in the public interest,
                  (B) that a permit has been issued in 
                accordance with subsection (b) for such 
                construction, operation, maintenance, and 
                connection of the facilities at the border for 
                the transmission of electric energy between the 
                United States and Canada as is necessary for 
                such exchange of electric power, and
                  (C) that each affected State has approved the 
                portion of the transmission route located in 
                each State in accordance with applicable State 
                law, or if there is no such applicable State 
                law in such State, the Governor has approved 
                such portion; and
          (2) after consultation with the Secretary of the 
        Interior and the heads of other affected Federal 
        agencies, that the Secretary of the Interior and the 
        heads of such, other agencies concur in writing in the 
        location of such portion of the transmission facilities 
        as crosses Federal land under the jurisdiction of such 
        Secretary or such other Federal agency, as the case may 
        be.
The Secretary shall provide to any State such cooperation and 
technical assistance as the State may request and as he 
determines appropriate in the selection of a transmission 
route. If the transmission route approved by any State does not 
appear to be feasible and in the public interest, the Secretary 
shall encourage such State to review such route and to develop 
a route that is feasible and in the public interest. Any 
exercise by the Secretary of the power of eminent domain under 
this section shall be in accordance with other applicable 
provisions of Federal law. The Secretary shall provide public 
notice of his intention to acquire any right-of-way before 
exercising such power of eminent domain with respect to such 
right-of-way.
  (b) Permit.--Notwithstanding any transfer of functions under 
the first sentence of section 301(b) of the Department of 
Energy Organization Act, no permit referred to in subsection 
(a)(1)(B) may be issued unless [the Commission has conducted 
hearings and made the findings required under section 202(e) of 
the Federal Power Act and under the applicable execution order 
respecting the construction, operation, maintenance, or 
connection at the borders of the United States of facilities 
for the transmission of electric energy between the United 
States and a foreign country. Any finding of the Commission 
under an applicable executive order referred to in this 
subsection shall be treated for purposes of judicial review as 
an order issued under section 202(e) of the Federal Power Act.] 
the Secretary has conducted hearings and finds that the 
proposed transmission facilities would not impair the 
sufficiency of electric supply within the United States or 
would not impede or tend to impede the coordination in the 
public interest of facilities subject to the jurisdiction of 
the Secretary.
  (c) Timely Acquisition by Other Means.--The Secretary may not 
acquire any rights-of-day under this section unless he 
determines that the holder or holders of a permit referred to 
in subsection (a)(1)(B) are unable to acquire such rights-of-
way under State condemnation authority, or after reasonable 
opportunity for negotiation, without unreasonably delaying 
construction, taking into consideration the impact of such 
delay on completion of the facilities in a timely fashion.
  (d) Payments by Permittees.--(1) The property interest 
acquired by the Secretary under this section (whether by 
eminent domain or other purchase) shall be transferred by the 
Secretary to the holder of a permit referred to in subsection 
(b) if such holder has made payment to the Secretary of the 
entire costs of the acquisition of such property interest, 
including administrative costs. The Secretary may accept, and 
expend, for purposes of such acquisition, amounts from any such 
person before acquiring a property interest to be transferred 
to such person under this section.
  (2) If no payment is made by a permit holder under paragraph 
(1), within a reasonable time, the Secretary shall offer such 
rights-of-way to the original owner for reacquisition at the 
original price paid by the Secretary. If such original owner 
refuses to reacquire such property after a reasonable period, 
the Secretary shall dispose of such property in accordance with 
applicable provisions of law governing disposal of property of 
the United States.
  (e) Federal Law Governing Federal Lands.--This section shall 
not affect any Federal law governing Federal lands.
  (f) Reports.--The Secretary shall report annually to the 
Congress on the actions, if any, taken pursuant to this 
section.

           *       *       *       *       *       *       *


                             MINORITY VIEWS

    H.R. 3062, the Promoting Cross-border Energy Infrastructure 
Act H.R. 3062 continues a decade-long Republican effort to 
relitigate decisions made with respect to the Keystone XL 
pipeline, a pipeline that ceased development over four years 
ago.\1\ This bill represents the second time this Congress that 
Republicans have attempted to move the legislation through the 
Committee--during consideration of the committee print for 
reconciliation legislation for Fiscal Year 2025, Republicans 
proposed a provision that would have mandated the approval of 
cross-border energy infrastructure for a fee of $50,000.\2\
---------------------------------------------------------------------------
    \1\Developer Abandons Keystone XL Pipeline Project, Ending Decade-
Long Battle, NPR (June 9, 2021).
    \2\House Committee on Energy and Commerce, Committee Print, Title 
IV, Committee on Energy and Commerce, Dissenting Views, 119th Cong. 
(May, 16, 2025).
---------------------------------------------------------------------------
    Ostensibly, the bill is focused on transforming the current 
permitting process created and authorized by executive orders 
into one authorized by statute.\3\ That is a laudable goal, 
assuming the statutory provisions do not undermine 
environmental laws. Unfortunately, the bill focuses on 
protecting crude oil and refined petroleum pipelines in 
particular from the full scope of environmental reviews under 
the National Environmental Policy Act (NEPA) by narrowing the 
scope of Federal authorization to solely the first 1,000 feet 
of the pipeline after the border, and excluding consideration 
of the rest of the pipeline. This is particularly egregious, as 
the environmental review of the entirety of the Keystone XL 
pipeline was vital in then-Secretary of State John Kerry's 
recommendation to President Obama that the issuance of a 
Presidential Permit would not serve the national interest.\4\
---------------------------------------------------------------------------
    \3\Exec. Order No. 10485, 18 Fed. Reg. 5397 (Sep. 3, 1953); Exec. 
Order No. 12038, 43 Fed. Reg. 4957 (Feb. 7, 1978); Exec. Order No. 
13867, 84 Fed. Reg. 15491 (Apr. 15, 2019).
    \4\Department of State, Record of Decision and National Interest 
Determination: TransCanada Keystone Pipeline, L.P. Application for 
Presidential Permit (Nov. 6, 2015).
---------------------------------------------------------------------------
    Furthermore, the bill forces the Federal Energy Regulatory 
Commission (FERC) and the Department of Energy (DOE) to become 
experts in matters of foreign affairs and diplomacy by not 
specifying which agencies they must consult before making a 
determination on whether or not a border-crossing facility is 
in the public interest. This is a major departure from current 
procedures, which require DOE and FERC to obtain favorable 
recommendations from the State Department and Department of 
Defense in order to move forward with border-crossing permits 
for natural gas and electric transmission lines (crude oil and 
refined petroleum product pipeline approvals are already 
handled by the State Department).\5\
---------------------------------------------------------------------------
    \5\See note 3.
---------------------------------------------------------------------------
    The bill also severely curtails the power of DOE to 
condition and regulate the imports and exports of electricity 
to Canada and Mexico. Section 202(e) of the Federal Power Act 
currently requires DOE to grant orders authorizing the 
transmission of electricity between the U.S. and a foreign 
nation unless it finds that the ``proposed transmission would 
impair the sufficiency of electric supply within the United 
States or would impede or tend to impede the coordination in 
the public interest of facilities subject to the 
Commission.''\6\ However, the law also gives DOE the authority 
to attach any condition to its approvals that it deems 
necessary or appropriate. Section 2(a)(2)(C) of H.R. 3062 would 
completely repeal section 202(e) of the Federal Power Act, and 
only allow DOE to condition its approval of electric 
transmission border-crossing facilities on those facilities' 
compliance with reliability and grid operator requirements, 
giving up any ability to engage in economic regulation.
---------------------------------------------------------------------------
    \6\16 U.S.C. 824a(e).
---------------------------------------------------------------------------
    In the 118th Congress, at a legislative hearing on February 
7, 2023, the Subcommittees on Energy, Climate, and Grid 
Security and Environment, Manufacturing, and Critical Materials 
heard testimony from Mr. Tyson Slocum, Director of the Energy 
Program at Public Citizen, on legislative text nearly-identical 
to H.R. 3062. Mr. Slocum testified that the provisions in the 
bill relating to natural gas pipelines would allow companies to 
dodge the requirements of section 3 of the Natural Gas Act, and 
easily export natural gas to Mexico, where it could then be re-
exported anywhere in the world in the form of liquified natural 
gas (LNG).\7\ He also testified--and DOE has since found--that 
increased LNG exports lead to higher domestic natural gas 
prices.\8\\9\ Given the correlation between domestic natural 
gas and electricity prices, this bill will likely lead to 
Americans paying more for power, heating, and cooking all at 
once.
---------------------------------------------------------------------------
    \7\House Committee on Energy and Commerce, Testimony of Tyson 
Slocum, Director of the Energy Program, Public Citizen, Hearing on 
Unleashing American Energy, Lowering Energy Costs, and Strengthening 
Supply Chains, 118th Cong. (Feb. 7, 2023).
    \8\Id.
    \9\Department of Energy, Statement from U.S. Secretary of Energy 
Jennifer M. Granholm on Updated Final Analysis (Dec. 2024).
---------------------------------------------------------------------------
    During the markup of the bill in the Energy Subcommittee, 
Representative Fedorchak (R-ND) stated that ``The underlying 
legislation does nothing to alter the environmental review of 
these projects.''\10\ The majority's report similarly states 
that ``The legislation would also have no effect on any other 
Federal statute that would apply to a project for which a 
Certificate of Crossing is required, including any requirements 
of NEPA.'' Unfortunately, the legislative history indicates 
that the majority is mistaken. In the 115th Congress, a nearly 
identical piece of legislation, H.R. 2883, came to the floor, 
and the House adopted an amendment authored by Rep. Marc Veasey 
(D-TX) by voice vote clarifying that nothing in the bill shall 
affect the scope of any environmental review required by 
NEPA.\11\ When this legislation was re-introduced in the 117th 
Congress and in this Congress, the only substantive change from 
the language that passed the House in the 115th Congress was 
that Rep. Veasey's amendment had been removed.\12\ An amendment 
adding identical language back into the bill was offered by 
Rep. Veasey during the Energy Subcommittee's markup of the bill 
was defeated on a recorded vote.
---------------------------------------------------------------------------
    \10\House Committee on Energy and Commerce, Subcommittee on Energy, 
Markup of 13 Bills, 119th Cong. (June 5, 2025).
    \11\H.Amdt. 209, 115th Cong. (2017).
    \12\H.R. 1058, 118th Cong. (2023).
---------------------------------------------------------------------------
    For the reasons stated above, I oppose this legislation.
                                        Frank Pallone, Jr.,
                                                    Ranking Member.

                               
                               [all]