What Happened?

If a liquefied natural gas (LNG) plant already has federal approval to operate, the company running it could soon expand or modify it without filing a separate application for each change. The Federal Energy Regulatory Commission (FERC) proposed the rule in October 2026, according to a Legis1 review of the proposed rulemaking. ​

The proposal creates three tiers of streamlined approval for already-authorized LNG plants:

  • Automatic authorization: Changes that don't increase capacity or expand the plant's footprint go through automatically, with operators notifying nearby landowners and local governments at least 45 days before construction.
  • 60-day prior notice: Capacity increases within the existing footprint require a 60-day wait; an unresolved protest triggers a full case-specific review.
  • 90-day prior notice: New facilities outside the existing footprint, such as storage tanks or marine berths, require 90 days' notice, must sit on adjacent land, and can permanently occupy no more than 25 acres.

FERC describes the proposal as a deregulatory action under Executive Order 14192 and estimates it would save respondents 9,988 hours of administrative effort, valued at $1,018,776.

Why Does it Matter to Me?

FERC Chair Laura V. Swett said consumers benefit from dependable and affordable energy infrastructure, and that the proposal would help build and maintain it while retaining safeguards.

FERC says the U.S. has become the world's largest LNG exporter, and its accumulated experience with LNG engineering, safety, and environmental effects informed the proposal. The new program is modeled on a pipeline blanket certificate program established in 1982 under a federal rule that allowed certain pipeline work without case-specific approval, but it differs by covering LNG plants under both Sections 3 and 7 of the Natural Gas Act, imposing no project cost limits, and adding LNG-specific compliance conditions.

Both Sides, Now

Supporters, including Cheniere Energy, the Interstate Natural Gas Association of America, and the Center for LNG, backed the blanket authorization approach and recommended no project cost limits.

Attorneys general from nine states, including Maryland, New York, and Oregon, along with the environmental group Earthjustice, opposed allowing expansions under a blanket program, arguing it could undermine state and local interests protected by federal natural gas law. In 2021, the D.C. Circuit ruled in *Vecinos para el Bienestar de la Comunidad Costera v. FERC* that FERC's environmental analysis for two LNG projects was inadequate, and in 2024 the same court remanded FERC's approval of the Rio Grande LNG terminal, prompting a supplemental review.

FERC responded that the proposed program, together with existing procedures, would continue to account for state and local interests, and directed staff to prepare an environmental review covering activities eligible for automatic authorization.

FERC describes the proposal as "a deregulatory action under E.O. 14192 (Unleashing Prosperity Through Deregulation)," and comments on the proposed rule are due Dec. 21.

What Happens Next?

Public comments on the proposed rule are due Dec. 21. The proposal followed a November 2025 notice of inquiry that drew 18 stakeholder comments.

If FERC finalizes the rule, existing authorization holders would have two years after publication before the new blanket program replaces current case-by-case procedures for covered activities.

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