Protecting Americans from High Electricity Prices Act of 2026
- Sponsor
- Sen. Merkley, Jeff [D-OR]
- Committees
- Energy and Natural Resources Committee (primary)
- Last action
- Jun 10, 2026
Bottom line
This bill fundamentally alters the regulatory framework for U.S. natural gas trade, prioritizing domestic affordability and climate impact while restricting exports to adversarial nations.
What it actually does
This bill amends Section 3 of the Natural Gas Act to significantly redefine the 'public interest' criteria for authorizing natural gas imports and exports. It mandates that the Federal Energy Regulatory Commission (FERC) consider environmental impacts and affordability, explicitly prohibiting authorizations that would increase U.S. natural gas prices, increase greenhouse gas emissions (including Scope 1, 2, and 3), or supply energy to designated 'countries of concern.' The bill also requires FERC to promulgate new regulations within 30 days of enactment to implement these criteria.
Proponents argue
Proponents would argue that the bill is essential for protecting American consumers and industries from high electricity prices by ensuring domestic natural gas supply and affordability. They would also emphasize its crucial role in combating climate change by explicitly requiring FERC to consider all scopes of greenhouse gas emissions, aligning energy policy with environmental goals and strengthening national security by restricting exports to adversarial nations.
Opponents contend
Opponents might contend that the bill imposes overly restrictive environmental criteria and could hinder the U.S.'s ability to act as a reliable energy supplier to allies, potentially undermining geopolitical influence and harming the domestic natural gas industry. They may also argue that it could stifle investment in natural gas infrastructure and lead to unintended economic consequences for the energy sector.
The bill is concise and relatively easy to read, allowing for a quick understanding of its core changes to the Natural Gas Act.
Section 2(a)(2) amending 15 U.S.C. 717b(a)(2) and inserting new subsection (c)
Expanded Public Interest Criteria for Natural Gas Authorizations
This provision mandates that the Federal Energy Regulatory Commission (FERC) consider the public interest broadly, including environmental impacts and affordability, when authorizing natural gas imports or exports. It explicitly states that increasing U.S. natural gas prices, increasing greenhouse gas emissions (Scope 1, 2, and 3), or supplying energy to 'countries of concern' are not consistent with the public interest.
Supporters argue
Supporters argue this provision is essential for protecting American consumers from energy price volatility, ensuring domestic energy security, and holding the U.S. accountable for its climate commitments by comprehensively addressing greenhouse gas emissions from natural gas trade. It also strengthens national security by preventing energy supply to adversarial regimes.
Critics contend
Critics might argue that these new criteria could severely restrict U.S. natural gas exports, potentially harming the domestic natural gas industry and limiting the U.S.'s ability to support allies with energy supplies, especially in times of global energy crises. They may also contend that the broad definition of 'public interest' and inclusion of Scope 3 emissions are overly burdensome and difficult to implement.
Tradeoffs
The provision balances domestic energy affordability and climate goals against the economic interests of natural gas exporters and the geopolitical role of the U.S. as an energy supplier. It also creates tension between economic growth in the energy sector and environmental protection.
Section 2(a)(2) inserting 15 U.S.C. 717b(c)(1)(A)
Defined 'Country of Concern' for Export Restrictions
This provision defines 'country of concern' to include Russia, China, North Korea, and Iran. It also allows the Secretary of Energy, in consultation with the Secretaries of Defense and State and the Director of National Intelligence, to designate additional countries as 'countries of concern' if they engage in conduct detrimental to U.S. national security or foreign policy, after public notice and comment.
Section 2(a)(2) inserting 15 U.S.C. 717b(c)(1)(B)-(D)
Standardized Definitions for Greenhouse Gas Emission Scopes
This provision formally defines 'Scope 1 emissions' (direct emissions from owned/controlled sources), 'Scope 2 emissions' (indirect emissions from purchased electricity/heat), and 'Scope 3 emissions' (all other indirect emissions in a company's value chain) for the purpose of FERC's public interest determinations.
Section 2(a)(2) inserting 15 U.S.C. 717b(c)(3)
Mandated Rulemaking for Public Interest Procedures
This provision requires the Federal Energy Regulatory Commission (FERC) to promulgate regulations within 30 days of the bill's enactment. These regulations will establish the procedures and criteria for determining whether natural gas imports or exports are consistent with the public interest, specifically incorporating the new considerations regarding affordability, environmental impacts (including all three scopes of emissions), and countries of concern.
This subsection clarifies that nothing in the Act is intended to limit the existing authority of FERC or the Secretary of Energy under the Natural Gas Act to consider impacts on U.S. households, businesses, or natural gas-dependent industries, or to determine that exports are not in the public interest or public convenience and necessity due to price increases.
Section 2(b)
Why it matters:Standard legislative practice to clarify intent and avoid unintended interpretations of new statutory language.
Case for: Ensures that the new criteria are additive and do not inadvertently strip FERC or the Secretary of Energy of existing powers to protect domestic interests, providing a safety net for consumer and industry protection.
Case against: While seemingly innocuous, it could be argued that by explicitly stating these existing authorities, it subtly reinforces that the new criteria are not the sole considerations, potentially allowing for loopholes or conflicting interpretations in future regulatory decisions.
Estimated impact: Clarifies and potentially reinforces existing regulatory discretion, which could have significant impact on future natural gas export decisions.