No Iranian Energy Act

Bill Number

H.R. 2574

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

International Affairs

Status

Introduced

Latest Action

2025-04-01: Referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, Ways and Means, Oversight and Government Reform, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Last Updated

2025-06-27T08:06:15Z

AI-Generated Summary

Purpose of the Legislation

The "No Iranian Energy Act" (H.R. 2574) aims to expand U.S. sanctions on Iran's energy sector by specifically targeting natural gas transactions. It seeks to discourage international entities, including the Government of Iraq, from importing or dealing in Iranian natural gas, as a means to pressure Iran's economy and limit its energy exports.

Key Provisions

• Sense of Congress (Section 2): Expresses that the U.S. Congress believes sanctions should focus on Iran's growing natural gas industry to curb its economic influence.
• Amendments to Existing Law (Section 3): Modifies the Iran Freedom and Counter-Proliferation Act of 2012 (IFCA), a law that imposes penalties on entities engaging in certain business with Iran:
• Updates Section 1244 (related to sanctions on Iran's energy, shipping, and shipbuilding sectors) to explicitly include the sale, supply, or transfer of natural gas to or from Iran, with exceptions allowed under Section 1254 (which provides waivers for national security or humanitarian reasons).
• Updates Section 1247 (related to sanctions on foreign financial institutions that facilitate prohibited transactions with Iran) to similarly cover natural gas dealings.

These changes make natural gas subject to the same restrictions as other energy products like oil under IFCA.

Significant Changes to Existing Law

• Prior to this bill, IFCA's sanctions primarily focused on oil and petroleum products but did not explicitly cover natural gas. This legislation closes that gap by amending two key sections to apply sanctions uniformly to natural gas transactions.
• No new sanctions are created; instead, it extends the scope of existing ones, ensuring natural gas is treated as a prohibited commodity unless waived.

Potential Impacts

• On Government Agencies: The U.S. Department of the Treasury (which enforces sanctions) and State Department (which handles waivers) may see increased administrative workload in monitoring and enforcing natural gas-related transactions globally.
• On Citizens: U.S. citizens and companies are already restricted from dealing with sanctioned Iranian entities; this reinforces those limits without direct new burdens but could indirectly affect energy prices if global supply chains are disrupted.
• On International Relations: Could strain U.S. ties with Iraq, which relies on Iranian natural gas imports for electricity (Iraq imports about 40% of its gas from Iran). It may pressure Iraq to seek alternative suppliers, potentially escalating U.S.-Iran tensions or affecting alliances in the Middle East. Other countries importing Iranian gas might face secondary sanctions, impacting broader diplomatic efforts.

Main Stakeholders Affected

• Government of Iraq: Directly targeted, as the bill focuses on its imports of Iranian natural gas; could face U.S. sanctions if it continues these purchases.
• Iranian Energy Sector: Companies and state entities involved in natural gas production and export would encounter heightened restrictions, limiting revenue.
• U.S. Government Agencies: Treasury, State Department, and Congress, responsible for implementation, waivers, and oversight.
• International Energy Firms and Financial Institutions: Foreign banks and companies dealing in Iranian gas could be penalized, including asset freezes or exclusion from U.S. financial systems.
• Middle Eastern Allies: Countries like Iraq's neighbors, who may be indirectly affected by regional energy shifts.

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens the executive branch's sanctions authority under IFCA without requiring new congressional action for each case, but waivers (under Section 1254) allow flexibility for foreign policy needs. This could lead to legal challenges from affected entities claiming overreach in extraterritorial application of U.S. law.
• Constitutional: Aligns with Congress's power to regulate foreign commerce and impose sanctions (Article I, Section 8), but raises questions about separation of powers if waivers are used politically.
• Political: Bipartisan sponsorship (119th Congress, introduced April 1, 2025) signals strong congressional consensus on Iran policy, potentially influencing U.S. strategy in ongoing nuclear and regional stability talks. It may politicize energy trade, complicating humanitarian considerations in Iraq where gas imports prevent blackouts.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Pfluger, August [R-TX-11]

Cosponsors (21)

Rep. Nunn, Zachary [R-IA-3], Rep. Van Drew, Jefferson [R-NJ-2], Rep. Edwards, Chuck [R-NC-11], Rep. Bilirakis, Gus M. [R-FL-12], Rep. Latta, Robert E. [R-OH-5], Rep. Cline, Ben [R-VA-6], Rep. Wagner, Ann [R-MO-2], Rep. Fallon, Pat [R-TX-4], Rep. Schmidt, Derek [R-KS-2], Rep. Rulli, Michael A. [R-OH-6], Rep. Begich, Nicholas [R-AK-At Large], Rep. Messmer, Mark [R-IN-8], Rep. Kustoff, David [R-TN-8], Rep. Tenney, Claudia [R-NY-24], Rep. McGuire, John [R-VA-5], Rep. Goldman, Craig [R-TX-12], Rep. LaLota, Nick [R-NY-1], Rep. Loudermilk, Barry [R-GA-11], Rep. Hamadeh, Abraham [R-AZ-8], Rep. Meuser, Daniel [R-PA-9], Rep. Harrigan, Pat [R-NC-10]

Recent Actions

• 2025-04-01: Referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, Ways and Means, Oversight and Government Reform, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-04-01: Referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, Ways and Means, Oversight and Government Reform, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-04-01: Referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, Ways and Means, Oversight and Government Reform, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-04-01: Referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, Ways and Means, Oversight and Government Reform, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-04-01: Referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, Ways and Means, Oversight and Government Reform, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-04-01: Introduced in House
• 2025-04-01: Introduced in House

Bill Versions

• No Iranian Energy Act — issued 2025-04-01 — PDF (2 pages)