The Federal Energy Regulatory Commission (FERC) has proposed a blanket authorization program that could substantially reduce the time required for liquified natural gas (LNG) terminal operators to construct, modify, replace, and, in some cases, expand existing facilities. The proposal would permit qualifying activities to proceed without the case-specific authorization orders otherwise required under sections 3 and 7 of the Natural Gas Act (NGA).[1]
Approved unanimously on October 15, the Notice of Proposed Rulemaking (NOPR) would create a three-tier framework under which certain LNG projects could proceed automatically, while others could proceed following 60- or 90-day prior-notice procedures. The Commission modeled its proposal on the long-standing blanket certificate program for interstate natural gas pipelines.[2]
If adopted, the proposal could materially alter how LNG developers approach modifications and expansions. The proposed program is not limited to routine maintenance: certain increases in authorized LNG capacity could qualify for 60-day prior notice, and even new liquefaction trains, storage tanks, and marine berths potentially could qualify for 90-day prior notice.[3]
Three Tiers of LNG Authorization
Automatic authorization. Qualifying activities could proceed without prior case-specific authorization if they would not increase authorized capacity, expand the authorized vertical or horizontal extent of the plant footprint, or cause flows, levels, volumes, pressures, temperatures, compositions, or loads to exceed applicable design limits. The contemplated program also includes reporting requirements.[4]
60-day prior notice. Certain activities that increase an LNG plant's authorized capacity could qualify, provided they remain within the plant's footprint and do not cause affected or remaining facilities to operate beyond their design limits. The prior-notice mechanism would permit Commission review and potential objections before work proceeds.[5]
90-day prior notice. Construction of new LNG facilities, potentially including liquefaction trains, LNG tanks, marine berths, and associated auxiliary systems, could qualify even where facilities extend outside the existing footprint. Eligibility would be subject to limits concerning facility type, location, and size.[6]
A Significant Change in FERC's Treatment of LNG Facilities
The proposal would extend to LNG infrastructure a regulatory approach familiar to interstate pipeline developers. FERC's section 7 blanket certificate regulations have long permitted certain pipeline construction and abandonment activities to proceed under general authorization when prescribed conditions are satisfied. LNG facilities, by contrast, have generally been subject to individualized authorization proceedings.[7]
The proposal would cover qualifying activities at LNG facilities regulated under NGA sections 3 and 7. Although the framework promises to expedite approval of eligible projects, the degree of practical relief will depend on how FERC defines eligibility and administers the prior-notice process in its final rule.
Environmental and Safety Requirements: Separate NEPA Reform Proposal
The LNG blanket authorization proposal would not displace environmental, engineering, safety, or other applicable legal requirements. FERC proposes standard environmental and engineering design conditions for eligible activities, together with additional requirements intended to ensure compliance with applicable law.[8]
In a separate action issued the same day, FERC proposed a change to its evaluation of operational air quality effects under the National Environmental Policy Act (NEPA) for projects under the Natural Gas Act. Under the draft policy statement, the Commission would no longer request air dispersion modeling from applicants or rely on such modeling in its NEPA analysis of operational air quality effects. FERC reasoned that the Clean Air Act regulatory framework already provides extensive safeguards administered by the Environmental Protection Agency and state air-quality agencies. Instead, FERC would evaluate air quality using other information submitted by applicants and identified by Commission staff. FERC expressly states that it would continue to address and disclose adverse air quality effects in its NEPA documents.[9]
The two proposals are complementary but legally distinct. The LNG blanket authorization rule would determine which projects may proceed without individual FERC authorization orders; the separate NEPA policy would change one analytical method used in FERC environmental review. Neither proposal, by itself, eliminates applicable Clean Air Act permitting obligations or all NEPA review. Applicants should therefore evaluate both the authorization pathway and the environmental record necessary for a project. Comments on the draft NEPA policy statement are due November 16, 2026, a deadline separate from the LNG blanket authorization NOPR.[10]
Issues for Comment
Industry participants should evaluate whether the proposed boundaries of automatic authorization and prior notice are sufficiently clear, whether limits on projects extending outside an existing footprint appropriate distinguish lower-risk activities, and how protests or Commission objections would affect scheduling. The treatment of design limits, project aggregation, and coordination with other federal and state approvals may be particularly consequential to real-world implementation.
Key Takeaway
FERC's proposal could represent a substantial change in LNG permitting. Its significance extends beyond minor facility modifications: the proposed prior-notice pathways potentially reach capacity additions and certain new LNG facilities. The benefit to developers, however, ultimately will depend on the final rule's eligibility criteria, safeguards, and procedures for disputed projects. LNG operators should review their project pipelines now and consider comments targeted at provisions that could materially affect permitting timelines.
[1] FERC, FERC Takes Historic Action Launching First LNG Authorization Program 1 (Oct. 15, 2026) (news release), Docket No. RM26-2-001 ("FERC LNG Release"); 15 U.S.C. §§ 717b, 717f.
[2] Id.; see also 18 C.F.R. pt. 157, subpart F (2026).
[3] Id.
[4] Id.
[5] Id.
[6] Id.
[7] See 18 C.F.R. pt. 157, subpart F (2026).
[8] FERC LNG Release at 1.
[9] FERC, FERC Launches NEPA Overhaul to Accelerate Natural Gas Projects 1 (Oct. 15, 2026) (news release), Docket No. PL26-3-000 ("FERC NEPA Release").
[10] The FERC LNG Release states that comments on the proposal are due 60 days after publication in the Federal Register.