FERC proposes tiered blanket authorization for LNG projects
The Federal Energy Regulatory Commission has proposed a new three-tiered blanket authorization program for LNG facilities and separately voted to eliminate air dispersion modeling from gas project reviews, aiming to cut permitting delays.
The U.S. Federal Energy Regulatory Commission (FERC) has proposed a new blanket authorization program for liquefied natural gas (LNG) facilities. The unanimously backed proposal aims to simplify project approvals by modeling the system on a long-standing framework for interstate natural gas pipelines.
FERC also moved separately to alter its environmental review process. In a 4-1 vote, the Commission proposed to no longer require air dispersion modeling for gas projects under the National Environmental Policy Act (NEPA). Commissioner Judy Chang cast the dissenting vote.
Three-tiered approval structure outlined
The proposed rule creates a three-tiered structure for LNG project activities, grouped by their potential scale of impact. This framework is designed to offer a more efficient path for modifications and expansions.
| Tier | Activity Description | Approval Requirement |
|---|---|---|
| 1 | Activities that do not increase a facility's approved capacity or alter its operating conditions. | Automatic approval. |
| 2 | Actions that may increase plant capacity but remain within current site boundaries. | 60 days prior notice to FERC. |
| 3 | Construction of new infrastructure like liquefaction trains, storage tanks, or marine berths, potentially beyond the current site perimeter. | 90 days advance notification, with restrictions on facility type, location, and scale. |
Air dispersion modeling removed from review process
The vote to drop air dispersion modeling from NEPA reviews represents a significant policy shift. FERC stated these models simulate how a project's emissions spread and interact with other pollution sources.
Commissioner Laura Swett supported the change, arguing the modeling has been a source of confusion, delay, and litigation. "The only current restriction on getting American gas is our ability to get the gas to market and the infrastructure bottlenecks," Swett said. In her dissent, Commissioner Judy Chang contended that air dispersion models are the best available tool for understanding local and regional air impacts before construction.
Broader permitting reform context
FERC leaders connected the LNG proposal to wider efforts to modernize energy permitting laws. They expressed encouragement regarding Senate legislation, the Bipartisan American Affordability and Jobs Act, which proposes reforms to statutes like NEPA and the Clean Water Act.
Commissioner David Rosner noted the Commission operates with a statutory framework that is often half a century old. He highlighted that interconnection reviews can take five years to complete, delaying new generation. Rosner said the proposed legislation could accelerate grid connections and encourage grid-enhancing technologies.
Laura Swett emphasized the need for new infrastructure. She stated that achieving a timely build-out requires durable and efficient regulatory frameworks for permitting.
Next steps for stakeholder input
The Notice of Proposed Rulemaking for the LNG blanket authorization will be published in the Federal Register. Following publication, stakeholders will have 60 days to provide comments before any decision is finalized.
