U.S. Department of Energy Proposes Streamlined Application Process for Cross-Border Electricity Transmissions

Strategic Insights -

The U.S. Department of Energy (DOE) has announced a proposal to streamline the application process for authorizations to transmit electricity from the United States to other countries, including Canada and Mexico. This move aims to reduce the regulatory burden on companies seeking to access cross-border markets and increase exports of American energy. The proposed rule would simplify the application process by allowing companies to submit relevant information on a case-by-case basis, rather than adhering to outdated and burdensome regulations. The Final Rule is expected to take effect on July 15, 2025, unless significant adverse comments are received.

Key Takeaways:

  • The proposed rule would reduce the relevant regulations from approximately 1,300 words spanning nine sections to just one 85-word section.
  • The streamlined application process would empower applicants to include only relevant information in their filings.
  • DOE would exercise a strong policy in favor of approving applications, and doing so quickly and expeditiously.
  • The proposed rule would reduce the regulatory burden on companies seeking to develop cross-border transmission facilities, enhancing access to foreign markets.
  • DOE claims that the changes will save the American people an estimated $11 billion and cut more than 125,000 words from the Code of Federal Regulations.
  • The Final Rule would eliminate the presidential permit requirement for cross-border transmission facilities, reducing the administrative burden on entities seeking to develop such facilities.
  • The proposed rule is part of the DOE's "largest deregulatory effort in history," aiming to eliminate or reduce 47 regulations that drive up costs and lower quality of life for the American people.

Statistics:

  • The proposed rule would reduce the relevant regulations from approximately 1,300 words to just 85 words.
  • The changes are estimated to save the American people $11 billion.
  • The Code of Federal Regulations will be cut by more than 125,000 words.
  • The Final Rule will take effect on July 15, 2025, unless significant adverse comments are received within 30 days of publication.

Sources:

1. Application for Authorization to Transmit Electric Energy to a Foreign Country, 90 Fed. Reg. _____ (unpublished version dated May 12, 2025) (to be codified at 10 C.F.R. pt. 205) (the "Proposed Rule").

2. Application for Presidential Permit Authorizing the Construction, Connection, Operation, and Maintenance of Facilities for Transmission of Electric Energy at International Boundaries, 90 Fed. Reg. _____ (unpublished version dated May 12, 2025) (to be codified at 10 C.F.R. pt. 205) (the "Final Rule").

3. U.S. Dept. of Energy, Energy Department Slashes 47 Burdensome and Costly Regulations, Delivering First Milestone in America's Biggest Deregulatory Effort, https://www.energy.gov/articles/energy-department-slashes-47-burdensome-and-costly-regulations-delivering-first-milestone (May 12, 2025) ("DOE Press Release").