FERC Estimates $1,018,776 in Savings From Proposed LNG Facility Authorization Program
Key Facts
The U.S. Federal Energy Regulatory Commission estimates that its proposal to expand blanket authorization for eligible activities at liquefied natural gas facilities would save 9,988 work hours and $1,018,776 in costs, according to estimates for the proposed rule published in the Federal Register. The program would allow some eligible work to proceed without a separate authorization order for each case. Commission Chair Laura Swett said, "Consumers benefit when additional energy infrastructure is available, reliable and affordable." The proposal remains open to comment before the commission decides whether to issue a final rule. The notice of proposed rulemaking was published in the Federal Register on October 20, 2026.
The proposal is expected to reduce by about 3 projects a year the number of projects using the case-specific application process, and to cut the paperwork burden by 3%. This does not mean the number of projects to be built will fall; the proposed change concerns how regulatory approval is obtained. The savings estimates are based on the time and costs respondents could avoid by using the program. The figures for hours and dollars therefore represent estimates of potential impact, not savings already realized. The commission says the model is inspired by the blanket certificate program for interstate natural gas pipelines, which it describes as having been in place for 40 years.
The program proposes three tiers of authorization: automatic authorization for specified activities, 60 days’ advance notice for some capacity increases, and 90 days’ notice for construction of new eligible LNG facilities. Facility license or certificate holders would first have to apply to join the blanket authorization before using it. The commission proposes authorizing the Director of the Office of Energy Projects to decide on these applications, avoiding the need to bring every case before the full commission. The proposal also includes standard environmental and engineering conditions to ensure compliance with relevant laws. The commission retains the right to reject or revoke blanket authorization if a holder does not comply with the conditions.
The proposal distinguishes between the roles of the Federal Energy Regulatory Commission and the Pipeline and Hazardous Materials Safety Administration. The commission has authority over the authorization of sites and construction of onshore and near-shore LNG import and export terminals, while the administration says it has exclusive authority to establish and enforce safety rules for onshore LNG facilities. The safety rules cover siting, design, construction, equipment, operations, worker qualification and training, fire protection and security. Under the National Environmental Policy Act, the commission prepares environmental assessments or impact statements for proposed projects within its jurisdiction. The proposal therefore changes the process for some regulatory authorizations, while safety and environmental review responsibilities remain in place.
The commission opened a 60-day comment period after publishing its notice in the Federal Register and set December 21, 2026, as the deadline for submissions. Comments must reference docket RM26-2-001. The commission said it would consider and respond to comments in a final rule, making revisions if it deems them appropriate. Until a final decision is issued, the program remains a proposal and does not constitute an authorization in effect for eligible projects. If adopted, its use would also require license and certificate holders to first obtain approval to join.