The Federal Energy Regulatory Commission (FERC) has proposed a historic plan to create a fast, three-tiered system for liquefied natural gas (LNG) projects. This move is intended to strengthen U.S. energy dominance and reduce years of delays in project licensing.
Details of the FERC Plan
With its unanimous vote, FERC has introduced a program to expedite the development of LNG infrastructure through a general licensing program. This program allows qualifying projects to continue their activities under Sections 3 and 7 of the Natural Gas Act (NGA) without the need for specific licensing orders. The plan is based on FERC's 40-year-old general certification program for interstate natural gas pipelines.
New Decisions and Requirements
Laura V. Sweeney, FERC Chair, stated, "American energy dominance requires building and maintaining the energy infrastructure our country needs, without unnecessary delays. I am proud to strongly support this historic FERC proposal." According to her, this program represents the feasibility of combining regulatory advantages, strong safety measures, and a commitment to the country's energy future.
FERC is proposing a three-tiered licensing framework in which some activities continue automatically, while others require prior notification to FERC. Stakeholders have 60 days after the NOPR is published in the Federal Register to submit their comments.
Activities that fall under the automatic licensing umbrella include those that do not increase the authorized capacity of an LNG facility and do not exceed operational conditions beyond the permitted design limits. Conversely, activities that may increase the authorized capacity but remain within the facility's scope require a 60-day notice.
Currently, activities involving the construction of new LNG facilities such as liquefaction lines, LNG tanks, and marine docks are subject to a 90-day notice. The plan also includes standard environmental conditions and engineering design to address the potential impacts of projects approved under the general licensing program.
