Aiming to cement U.S. energy dominance, the U.S. Federal Energy Regulatory Commission (FERC) has unveiled a historic proposal to create a three-tiered fast-track system for liquefied natural gas (LNG) projects, sparking a new era of regulatory certainty for developers by slashing years of case-by-case permitting delays.
While announcing in a unanimous vote to accelerate LNG infrastructure development through a landmark blanket authorization program, the U.S. Federal Energy Regulatory Commission emphasized the proposal would streamline permitting, speed energy infrastructure development, and deliver unprecedented regulatory certainty for project developers.
FERC’s notice of proposed rulemaking (NOPR) intends to establish an LNG blanket authorization program to allow eligible activities at LNG facilities to proceed without case-specific authorization orders under Sections 3 and 7 of the Natural Gas Act (NGA). This program is modeled on the commission’s 40-year blanket certificate program for interstate natural gas pipelines.
Laura V. Swett, FERC’s Chairman, commented: “American energy dominance requires us to build and maintain the energy infrastructure our country needs without unnecessary delay. I am immensely proud of FERC’s historic proposal.
“It shows what can be possible when we combine regulatory excellence, robust safeguards, and a firm commitment to the nation’s energy future. Consumers benefit when more energy infrastructure is online, dependable, and affordable, and FERC is helping make that future a reality.”
The Federal Energy Regulatory Commission is proposing a three-tiered authorization framework under which certain activities could proceed automatically, with periodic reporting, while others would require advance notice to FERC. Interested parties will have 60 days after the NOPR is published in the Federal Register to submit comments.
Under the automatic authorization umbrella are activities that would not increase an LNG plant’s authorized capacity, expand the authorized vertical or horizontal extents within the plant’s footprint, or cause flows, levels, volumes, pressures, temperatures, compositions, or loads to exceed applicable design limits.
A 60-day prior notice covers activities that may increase the plant’s authorized capacity but remain within the plant’s footprint and do not cause operating conditions to exceed the design limits of the affected or remaining facilities.
A 90-day prior notice entails construction of new LNG facilities, such as liquefaction trains, LNG tanks, and marine berths, and related auxiliary systems, including those located outside the plant’s footprint, subject to limitations on facility type, location, and size.
In addition, FERC’s NOPR also proposes standard environmental and engineering design conditions to address the potential impacts of projects approved under the blanket authorization program, as well as other requirements to ensure compliance with all applicable laws.