New Act Swaps Presidential Permits for 120-Day Certificate Review on Cross-Border Pipelines

The “Promoting Cross-border Energy Infrastructure Act” is essentially a major overhaul of how the U.S. approves energy projects—like oil pipelines, gas pipelines, and electric transmission lines—that cross into Canada or Mexico. Instead of the old system where project developers had to get a politically charged Presidential permit, this bill introduces a new requirement: a “certificate of crossing.” This certificate, handled by either the Federal Energy Regulatory Commission (FERC) for pipelines or the Secretary of Energy for power lines, must be issued within 120 days after the environmental review is finished, unless the agency finds the project isn't in the U.S. public interest. Crucially, the bill also provides a massive speed boost for natural gas trade with our neighbors, requiring FERC to approve applications to import or export gas to Canada or Mexico within just 30 days of receiving complete paperwork. These changes, along with the elimination of the Presidential permit requirement entirely, are designed to fast-track North American energy integration, though most won't take effect until one year after the law is enacted.

The Permit Swap: Less Politics, More Bureaucracy?

For years, major cross-border energy projects have been subject to the Presidential permit process, which essentially put the final decision in the hands of the White House. That process was often slow and highly political. This Act wipes that clean. The new certificate process aims to provide a fixed, tight timeline (120 days post-NEPA) for a final decision. For an energy company, this level of regulatory certainty is like hitting the project management jackpot—they know exactly how long they have to wait for a final answer, making financing and planning much easier. However, the agencies still retain the power to reject a project if they decide it’s not in the “U.S. public interest.” Since that term isn’t clearly defined, it leaves a lot of subjective power in the hands of the Secretary or FERC, which could still lead to delays or politically motivated denials, even if the timeline is fixed.

What it Means for the Grid and Your Gas Bill

One of the most noticeable impacts of this bill is the lightning-fast 30-day approval for natural gas trade with Canada and Mexico. This is a huge shift. If you’re a utility trying to secure a reliable source of gas for heating or power generation, this speed means you can react much faster to market changes or supply needs. The bill also completely removes the need for the Secretary of Energy to issue specific orders for transmitting electricity across the border, streamlining the process for power companies to share electricity, which could increase grid stability and efficiency. For the average person, this could translate into more reliable energy supply, especially during seasonal peaks, and potentially lower costs due to increased market competition and efficiency.

The Oversight Question: When is Streamlining Too Streamlined?

The biggest trade-off here is oversight. While the bill keeps other key environmental laws in place—like the National Environmental Policy Act (NEPA) review—it removes the highest level of executive review by eliminating the Presidential permit. That permit was often the last chance for high-level scrutiny on projects with massive environmental or geopolitical implications. Furthermore, the bill protects all existing Presidential permits from being revoked by any future President unless Congress specifically authorizes it. This means projects that already have permits are effectively shielded from future executive action. For community groups and environmental advocates, this reduction in high-level oversight means fewer avenues to challenge a project once the environmental review is complete, placing more pressure on the initial NEPA phase. Also, the bill broadly defines “modifications” to existing pipelines as exempt from the new certificate process, meaning a pipeline could reverse its flow or significantly increase volume without going through the new review, a detail that could impact local communities without triggering a new regulatory check.