S 1274119th CongressIn Committee

Protecting American Households From Rising Energy Costs Act of 2025

Introduced: Apr 3, 2025

Standard Summary

Comprehensive overview in 1-2 paragraphs

The Protecting American Households From Rising Energy Costs Act of 2025 would ban the export or resale of liquefied natural gas (LNG) and petroleum products to certain countries and entities connected to them (specifically, the People’s Republic of China or the Chinese Communist Party, Russia, North Korea, and Iran, including any entity under their ownership or control). Exporters could obtain a waiver from the Secretary of Energy if there is an imminent and acute national security emergency and no other adequate response is available. The bill imposes strong enforcement tools, including substantial civil penalties and criminal penalties for violations, and it directs coordination with the Treasury’s Office of Foreign Assets Control (OFAC) and the Federal Energy Regulatory Commission (FERC). The Secretary would have broad rulemaking authority to implement the act. The overall aim is to reduce energy export flows to adversarial nations and strengthen U.S. energy security, potentially affecting energy prices, trade flows, and compliance costs for exporters. If waivers are rare or tightly limited, the restrictions could limit certain LNG and petroleum product shipments in global markets and have practical implications for exporters, banks, and regulators.

Key Points

1Prohibition on exports or resales of LNG and petroleum products to: (i) entities operating in or owned/controlled by China (PRC/CCP), Russia, North Korea, or Iran; and (ii) any entity under ownership or control of those same countries, with waivers possible only under narrowly defined national security emergency conditions.
2Exporters must ensure compliance with this act and applicable laws, including OFAC sanctions and FERC regulations. The Secretary collaborates with the Treasury and Commerce secretaries in determining compliance and enforcement.
3Waivers may be issued prior to contract date if the Secretary determines an imminent and acute national security emergency exists and other responses would be inadequate; notices of waivers must be shared with relevant congressional committees within 15 days.
4Strong enforcement framework: civil penalties up to the greater of $250 million or twice the value of the violating transaction; procedural rights for hearings; potential civil actions in federal court; and possible injunctive relief.
5Criminal penalties for knowing violations: fines up to $100 million, imprisonment up to 20 years, or both. The Secretary may promulgate rules to implement and adjust the act as needed.

Impact Areas

Primary group/area affected- U.S. LNG and petroleum product exporters and their customers, as well as the broader U.S. energy trading and logistics sector. The prohibition directly restricts who can receive LNG and petroleum products, potentially altering export decisions, contract negotiations, and supply chains.- U.S. households and businesses indirectly through energy prices and reliability, since changes to export flows can influence domestic energy costs and market dynamics.Secondary group/area affected- National security and regulatory agencies: U.S. Treasury (OFAC) and FERC would play significant roles in enforcement and compliance, creating new or expanded regulatory obligations for exporters.- Foreign relations and global energy markets: The restriction targets major geopolitical actors and could affect diplomatic dynamics and global LNG/petroleum trade flows with those countries.Additional impacts- Compliance costs and administrative burden for exporters, banks, and trading counterparties due to enhanced screening and regulatory requirements.- Potential market and price effects in the global energy market, particularly if restrictions reduce or reroute LNG and petroleum product flows to or from adversary countries.- Possible legal and diplomatic implications if waivers are invoked or if compliance disputes arise.- The act’s effectiveness could hinge on the breadth of the waiver process, the speed of enforcement, and the ability of other nations to adjust supply and demand in response.LNG: Liquefied natural gas, natural gas cooled into liquid form for easier transport.Petroleum products: A broad category defined by the Energy Policy and Conservation Act; includes refined and certain related products.Secretary: Secretary of Energy.OFAC: Office of Foreign Assets Control, a Treasury bureau that administers sanctions.FERC: Federal Energy Regulatory Commission, which oversees interstate energy markets and infrastructure.

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