PolicyBrief
H.R. 3062
119th CongressApr 29th 2025
Promoting Cross-border Energy Infrastructure Act
IN COMMITTEE

Streamlines the approval process for cross-border energy infrastructure projects with Canada and Mexico, transferring authority from the President to federal agencies and setting strict timelines for decisions.

Julie Fedorchak
R

Julie Fedorchak

Representative

ND

LEGISLATION

Border Energy Projects Shift to Fast Lane: Bill Swaps Presidential Permits for Agency Certificates, Mandates Quick Gas Approvals

A new piece of legislation, the 'Promoting Cross-border Energy Infrastructure Act,' is set to significantly change how the U.S. approves major energy projects like oil and natural gas pipelines and electricity transmission lines that cross our borders with Canada and Mexico. The main idea is to replace the current Presidential permit system with a new 'certificate of crossing' issued by either the Federal Energy Regulatory Commission (FERC) for oil and gas pipelines, or the Secretary of Energy for electric lines. These agencies would have 120 days to issue a certificate after the environmental review process under the National Environmental Policy Act of 1969 (NEPA) wraps up, unless they decide the project isn't in the 'public interest.' The bill explicitly aims to 'strengthen North American energy security' by making these approvals quicker and, in some cases, automatic.

Trading the Oval Office for an Agency Stamp: How Permits Are Changing

So, what does this shift from Presidential permits to agency 'certificates of crossing' actually mean? For starters, it moves the final say on these big international projects from the White House to federal agencies – specifically FERC for pipelines and the Department of Energy for power lines. According to Section 2, once the often lengthy NEPA environmental review is done, these agencies are on a 120-day clock to make a call. This could speed things up for energy companies looking to build. However, it also means decisions that once had direct Presidential oversight will now be handled at the agency level, which operates under different pressures and priorities. Existing facilities or those with pending Presidential permit applications are largely exempt from this new certificate requirement, at least for a while.

Natural Gas on the Clock: 30 Days to 'Yes' for Canada & Mexico Projects

One of the most eye-popping changes in this bill (Section 2, amending Section 3(c) of the Natural Gas Act) is a new 30-day deadline for approving applications to import or export natural gas to or from Canada and Mexico. That’s right, FERC would have just one month to greenlight these projects once a complete application is in. Think about that – a major international gas project potentially approved faster than you can get a complicated building permit in some towns. While the aim might be to boost energy trade, a 30-day mandatory approval window raises serious questions about how much actual review can happen. It puts a massive time crunch on assessing everything from local impacts to broader energy market effects.

Presidential Power Check: Existing Permits Now Off-Limits for Revocation?

This bill also throws a wrench in how existing cross-border energy permits are managed. Under Section 2, the President would be prohibited from revoking any current Presidential permits for these oil, gas, or electricity lines unless Congress passes a specific act authorizing it. This is a big shift. If, down the line, an existing pipeline or power line turns out to be a serious problem – say, due to environmental issues or safety concerns that weren't apparent before – the President's hands would be tied. Undoing a permit would require a whole new legislative battle, which, as anyone watching Washington knows, is no small feat. This effectively locks in past decisions, for better or worse.

Expanding Without Asking? 'Modifications' Get a Pass

What if an existing pipeline wants to pump more oil, or a power line needs to carry more electricity? The bill (Section 2) says 'modifications' to existing facilities won't need a new certificate or Presidential permit. The bill defines 'modification' to include an 'expansion,' as long as it doesn't create a new border crossing point. This could mean a company might significantly increase the capacity or operational scope of an existing project without going through the new (or old) full permitting process. For communities living near these lines or environmental watchers, this could feel like a loophole allowing major changes with less scrutiny. The bill also repeals the existing requirement (Section 202(e) of the Federal Power Act) for an order to transmit electricity to Canada and Mexico, further streamlining things but also potentially reducing oversight.

The Bottom Line: Streamlined Energy or Sidelined Scrutiny?

The 'Promoting Cross-border Energy Infrastructure Act' clearly aims to get energy flowing more quickly across our northern and southern borders. For energy companies, this could mean a more predictable and faster path to getting projects built. The stated goal is 'strengthening North American energy security.' But here’s the rub: does faster always mean better, or safer? While the bill says it doesn't mess with other federal laws like NEPA (which mandates environmental reviews), the tight deadlines and mandatory approvals, especially the 30-day rule for gas projects, could put immense pressure on those review processes. It raises concerns for anyone worried about environmental protection, landowner rights, or the ability of Indigenous communities to have their voices fully heard when massive infrastructure projects are on the table. The core changes to permitting are slated to take effect one year after the bill becomes law, with agencies required to publish final rules for implementation within that same timeframe, so the details of how this all plays out in practice will be critical to watch.