This bill establishes new criteria for the Federal Energy Regulatory Commission to evaluate natural gas import/export applications based on climate impacts, domestic affordability, and national security risks.
Jeff Merkley
Senator
OR
This bill, the "Protecting Americans from High Electricity Prices Act of 2026," overhauls the criteria the Federal Energy Regulatory Commission uses to approve natural gas import and export applications. It mandates that the Commission must now affirmatively find that such activities are in the public interest, explicitly considering climate impacts, domestic affordability, and national security risks. The legislation specifically prohibits approvals that would increase U.S. natural gas prices or raise greenhouse gas emissions across all scopes (1, 2, and 3).
Natural Gas Export Rules Get a Massive Overhaul: New 2026 Bill Targets Prices and Climate Impact
The Protecting Americans from High Electricity Prices Act of 2026 fundamentally flips the script on how the U.S. handles natural gas exports. Currently, the government generally assumes exporting gas is fine unless someone proves it’s harmful. This bill reverses that burden of proof: now, the Federal Energy Regulatory Commission (FERC) can only approve an export or import if they can affirmatively prove it is in the 'public interest.' It’s a 'guilty until proven innocent' approach for energy companies that will require them to pass a strict new three-part test involving your wallet, the planet, and national security.
The New Public Interest Test
Under Section 2, the bill creates a hard line on what is considered bad for the public. If an export project is likely to raise natural gas prices for American households or local manufacturers, it’s a no-go. This is a big deal for anyone paying a heating bill or working in a factory where energy costs dictate whether the lights stay on. Additionally, the bill mandates a deep dive into greenhouse gas emissions. FERC won't just look at the smoke from the facility itself (Scope 1); they have to count the emissions from the electricity the plant buys (Scope 2) and even the 'Scope 3' emissions—the carbon footprint of the entire supply chain, including when that gas is eventually burned by a customer overseas. For a local business owner, this could mean more stable energy prices, but for the energy industry, it creates a massive new mountain of paperwork and data tracking.
Drawing Lines on the Global Map
The legislation also gets serious about who we’re fueling. It explicitly bars exports to 'countries of concern,' specifically naming Russia, China, North Korea, and Iran. The Secretary of Energy also gets the power to add other countries to this list if they are deemed a threat to national security. While this is aimed at keeping American energy out of the hands of rivals, the broad language gives the government significant discretion to shift the list based on the political climate of the day. If you’re a worker in the LNG (liquefied natural gas) industry, this means your job security might suddenly depend more on diplomatic relations and global emissions math than on how much gas is actually in the ground.
Fast-Tracked Rules and Real-World Hurdles
Once this hits the books, FERC only has 30 days to write the new rules for how these evaluations will work. That is a lightning-fast turnaround for a federal agency, which could lead to a period of confusion for companies currently planning multi-billion dollar infrastructure projects. The inclusion of Scope 3 emissions is perhaps the most complex part; measuring the total environmental impact of gas from the wellhead in Texas to a stove in Europe is a logistical nightmare. While the bill’s 'savings clause' ensures the government can still step in to protect domestic prices, the sheer amount of new criteria means that getting a new export terminal approved just got a whole lot harder and more expensive.