The House Passes the FENCES Act – Rep. August Pfluger

In a significant victory for American energy producers, manufacturers, and workers, the U.S. House of Representatives passed H.R. 6409, the Foreign Emissions and Nonattainment Clarification for Economic Stability (FENCES) Act, on April 16, 2026, by a vote of 220-208.

Sponsored by Rep. August Pfluger (R-TX-11), this commonsense permitting reform bill amends the Clean Air Act to deliver fairness and certainty to the regulatory process by excluding uncontrollable foreign emissions from air quality compliance calculations. The FENCES Act addresses a long-standing flaw in how the Environmental Protection Agency (EPA) interprets the Clean Air Act.

Under current Biden-era guidance, states could only partially account for foreign emissions—and only if they were human-caused—when seeking adjustments to air quality plans or avoiding nonattainment designations under National Ambient Air Quality Standards (NAAQS). This left U.S. industries, particularly in energy-producing regions like Texas’s Permian Basin, vulnerable to unfair penalties from pollution originating outside U.S. borders, such as Canadian wildfires, Mexican dust storms, or transboundary emissions from overseas. Key Provisions of the FENCES Act

The bill makes targeted, practical changes to the Clean Air Act: It amends Section 179B to explicitly clarify that all emissions emanating from outside the United States—regardless of whether they result from human activity—must be excluded when determining whether an area attains or maintains NAAQS. If a state demonstrates that an area would meet standards “but for” these foreign emissions, it cannot be designated as nonattainment.

It adds a new Section 179C, which prevents certain sanctions and fees (under Sections 179 and 185) from applying in severe or extreme nonattainment areas for ozone or serious areas for particulate matter if the failure to attain is due to foreign emissions, exceptional events (like wildfires), or mobile-source emissions beyond state control—provided the state implements all feasible measures and renews its demonstration every five years.

These updates do not weaken environmental protections or the core goals of the Clean Air Act. Instead, they ensure accountability is placed where it belongs—on domestic sources—while shielding states, communities, and businesses from factors entirely outside their control.

Rep. Pfluger, whose district includes critical energy infrastructure in West Texas, emphasized the bill’s importance: “The passage of my FENCES Act is a win for American businesses and workers who have been unfairly penalized for pollution beyond their control. By ensuring that foreign emissions and natural events, such as wildfires, are not counted against air monitoring data, this bill brings long-overdue fairness and certainty to the permitting process. This means fewer delays, lower costs for consumers, and more confidence for businesses looking to invest and create jobs.” House leadership echoed this sentiment.

Speaker Mike Johnson (R-LA) stated, “The FENCES Act ensures states are not punished by Biden-era regulations for foreign emissions outside of their control… I commend Rep. Pfluger for his leadership to restore common sense to our permitting system.” House Energy and Commerce Committee Chairman Brett Guthrie (R-KY) added, “Pollution that originates outside our borders shouldn’t penalize American communities and manufacturers… [It] provides a more predictable regulatory environment for manufacturers across the country while maintaining the Clean Air Act’s core environmental protections.” Positive Impact on U.S. Energy Exports and Energy Dominance

The FENCES Act is more than a technical fix—it is a strategic boost for U.S. energy leadership on the global stage. Energy projects—from oil and gas development to LNG export terminals, pipelines, and refineries—frequently face lengthy air quality permitting reviews. A threatened or actual nonattainment designation can trigger stricter emission offsets, delays spanning years, and skyrocketing compliance costs, even when the root cause is foreign pollution. By removing these artificial barriers, the bill accelerates project approvals and unlocks capital investment in American energy infrastructure.

This directly translates to higher domestic production and expanded export capacity. The United States already leads the world as the top producer and exporter of oil, natural gas, and liquefied natural gas (LNG). Predictable, fair permitting will sustain and grow that edge by enabling faster development of export-oriented projects, ensuring reliable supply chains for allies in Europe and Asia who seek to reduce dependence on adversarial suppliers.

Lower regulatory uncertainty also means lower energy costs at home, enhancing the competitiveness of U.S. manufacturers and exporters across the economy. Industry leaders strongly support the measure. Kristin Whitman of the American Petroleum Institute (API) noted, “Representative Pfluger’s… Act delivers long-overdue fairness in air-quality compliance, ensuring U.S. states and businesses aren’t penalized for factors beyond their control… [a] critical and commonsense step that protects environmental integrity, while maintaining economic competitiveness.”

Parker Kasmer of the American Exploration & Production Council (AXPC) added that the bill recognizes “U.S. leadership” in energy production and emissions reductions while providing “long-overdue clarity under the Clean Air Act to ensure local communities and American businesses are not penalized for emissions originating beyond U.S. borders.”

In short, the FENCES Act reinforces U.S. energy dominance by cutting red tape, attracting investment, creating jobs, and ensuring American producers are not held hostage to pollution they cannot control—while continuing to deliver the cleanest, most reliable energy to the world. This marks Rep. Pfluger’s ninth bill to pass the House this term and builds on broader Republican efforts to modernize outdated permitting laws. The legislation now heads to the Senate, where it is expected to garner strong bipartisan support for its focus on fairness and economic growth.

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