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Federal Regulators Propose New Policies for Liquefied Natural Gas Projects

Federal energy regulators have proposed new policies to streamline the development of liquefied natural gas (LNG) infrastructure in the U.S. The Federal Energy Regulatory Commission (FERC) introduced a blanket authorization program that categorizes projects into three tiers, each with different levels of federal review. The proposal also includes a reduction in environmental review requirements under the National Environmental Policy Act. A public comment period will be open until November 16, 2026.

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Laura Swett Judy Chang

Federal energy regulators are proposing new policies to facilitate the development of liquefied natural gas (LNG) infrastructure across the United States. The Federal Energy Regulatory Commission (FERC) introduced a blanket authorization program on October 15, 2026, which aims to streamline the approval process for new LNG projects by removing certain environmental requirements.

FERC Chairwoman Laura Swett stated, "It is indisputable that gas is critical to our future." She noted that the primary limitation on meeting domestic and international demand for natural gas is the ability to transport it to market due to infrastructure bottlenecks. Swett emphasized that the proposed changes are intended to eliminate these restrictions.

The new blanket program will categorize projects into three tiers, with varying levels of federal review. The first tier, labeled "automatic authorization," allows certain projects to proceed without prior notice to the commission, provided they do not increase the facility's authorized capacity or exceed design limits.

The second tier requires developers to notify the commission 60 days in advance, allowing for public and agency protests. This tier includes projects that may increase capacity but must remain within the existing facility's footprint and not adversely impact safety or reliability.

The third tier necessitates a 90-day notice for projects involving new LNG infrastructure, such as liquefaction trains and marine berths. These projects cannot permanently occupy more than 25 acres of previously disturbed land and must adhere to design specifications of previously authorized facilities.

A public comment period will be open for 60 days following the publication of the proposal in the Federal Register. Additionally, FERC is proposing to reduce federal permitting requirements by softening environmental reviews mandated under the National Environmental Policy Act (NEPA). Swett clarified that this approach is not intended to diminish environmental protections but to clarify FERC's role as an economic regulator rather than an environmental one.

Democratic commissioner Judy Chang expressed dissent regarding the proposal, raising concerns that the reduction of requirements may hinder FERC's ability to fulfill its obligations under NEPA and the Natural Gas Act. She highlighted that air dispersion modeling is a critical tool for assessing the air quality impacts of projects.

The deadline for public comments on the proposal is November 16, 2026.

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Regulators propose sweeping approvals and softening environmental rules for liquefied natural gas projects

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Federal Regulators Propose New Policies for Liquefied Natural Gas Projects