Us Congress 2025-2026 Regular Session

Us Congress Senate Bill SB1035 Compare Versions

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11 II
22 119THCONGRESS
33 1
44 STSESSION S. 1035
55 To prohibit certain exports of natural gas produced or refined in the United
66 States, and for other purposes.
77 IN THE SENATE OF THE UNITED STATES
88 MARCH13, 2025
99 Mr. S
1010 ULLIVANintroduced the following bill; which was read twice and referred
1111 to the Committee on Energy and Natural Resources
1212 A BILL
1313 To prohibit certain exports of natural gas produced or
1414 refined in the United States, and for other purposes.
1515 Be it enacted by the Senate and House of Representa-1
1616 tives of the United States of America in Congress assembled, 2
1717 SECTION 1. FINDINGS. 3
1818 Congress finds that— 4
1919 (1) natural gas that is produced or refined in 5
2020 the United States should be exported from domestic 6
2121 terminals given the economic and national security 7
2222 concerns associated with exporting that natural gas 8
2323 from countries with corrupt governments such as 9
2424 Mexico; 10
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2828 (2) Mexico is ranked 140th out of 180 coun-1
2929 tries in the 2024 Transparency International Cor-2
3030 ruption Perceptions Index, with corruption perme-3
3131 ating political and economic segments of society in 4
3232 Mexico; 5
3333 (3) according to the 2024 Investment Climate 6
3434 Statement of the Department of State, ‘‘Mexico’s 7
3535 current executive administration has been said to 8
3636 erode the autonomy and publicly question the value 9
3737 of specific antitrust and energy regulators and it has 10
3838 proposed dissolving some of them to cut costs. Fur-11
3939 thermore, reporting suggests that corruption con-12
4040 tinues to affect equal enforcement of some regula-13
4141 tions.’’; 14
4242 (4) the corruption permeating Mexico is illus-15
4343 trated by the significant fuel theft in Mexico, which 16
4444 is so rampant that— 17
4545 (A) Roberto Dı´az de Leo´n, the former 18
4646 President of the National Fuel Retailers Asso-19
4747 ciation in Mexico, referred to fuel theft net-20
4848 works as main competitors of gas station own-21
4949 ers; 22
5050 (B) according to Roberto Dı´az de Leo´n, 23
5151 there were at least 4 illegal fuel stations for 24
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5555 every 1 of the 13,000 legal fuel stations in Mex-1
5656 ico, as of 2020; and 2
5757 (C) the former president of Mexico, Andre´s 3
5858 Manuel Lo´pez Obrador, suggested that as much 4
5959 as
6060 4
6161 ⁄5of fuel theft is orchestrated by elements 5
6262 of the Mexican state, and fuel thieves depend 6
6363 on complicit politicians, police, and insiders at 7
6464 state-controlled oil companies to make fuel theft 8
6565 possible; 9
6666 (5) employees of the Mexican state-owned pe-10
6767 troleum company, Pemex, have reportedly been 11
6868 threatened, kidnapped, and tortured by criminal car-12
6969 tels in Mexico to provide information on pipelines; 13
7070 (6) Pemex has faced frequent allegations of cor-14
7171 ruption, and, in 2018, Adria´n Lajous Vargas, the 15
7272 former chief at Pemex, stated that corruption was 16
7373 rampant and ‘‘everywhere in all areas and at all lev-17
7474 els of the hierarchy’’; 18
7575 (7) Mexico has centralized governmental power 19
7676 in its executive branch, including through judicial re-20
7777 forms in September 2024 that asserted political con-21
7878 trol over the judiciary of Mexico by subjecting all 22
7979 judges to replacement through elections that favor 23
8080 the ruling political party; 24
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8484 (8) the politicization of the judicial branch in 1
8585 Mexico imperils the principle of impartiality and 2
8686 casts doubt on whether laws will be applied without 3
8787 favor, contracts will be honored, and trade disputes 4
8888 will be fairly resolved; 5
8989 (9) Mexican judicial reforms are expected to re-6
9090 sult in changes to regulatory agencies that are crit-7
9191 ical to upholding labor, environmental, and trade 8
9292 standards enshrined under the United States-Mex-9
9393 ico-Canada Agreement; 10
9494 (10) Mexico has also been in violation of its en-11
9595 ergy commitments under the United States-Mexico- 12
9696 Canada Agreement through violations such as— 13
9797 (A) granting Mexican state-owned energy 14
9898 companies priority over private investors, in-15
9999 cluding adopting several measures to favor 16
100100 Pemex and the state-owned electrical utility, the 17
101101 Comisio´n Federal de Electricidad, at the ex-18
102102 pense of foreign investors, the United States, 19
103103 and Canada; and 20
104104 (B) erecting new barriers to foreign trade 21
105105 and investment; and 22
106106 (11) the export of natural gas that is produced 23
107107 or processed in the United States and exported to 24
108108 terminals located in Mexico— 25
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112112 (A) is not in the national interest of the 1
113113 United States; and 2
114114 (B) is a national security and trade con-3
115115 cern to the United States. 4
116116 SEC. 2. PROHIBITION ON EXPORTS OF NATURAL GAS. 5
117117 Notwithstanding any other provision of law, no per-6
118118 son shall export any natural gas produced or refined in 7
119119 the United States to a foreign country with the intent of 8
120120 further exporting that natural gas through a foreign LNG 9
121121 terminal (as defined in section 2 of the Natural Gas Act 10
122122 (15 U.S.C. 717a)). 11
123123 Æ
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