New LNG Bill Forces FERC to Skip 'Public Interest' Review, Centralizing Power for Gas Terminal Approvals

The Unlocking Domestic LNG Potential Act of 2025 is a major overhaul of how the U.S. government approves natural gas import and export terminals, especially those dealing with Liquefied Natural Gas (LNG). This bill’s main move is to strip out the existing regulatory framework in the Natural Gas Act and hand the Federal Energy Regulatory Commission (FERC) exclusive, streamlined authority over the entire approval process. Essentially, it fast-tracks the green light for building or expanding these facilities.

The Regulatory Fast Lane: Automatic Approval

The biggest change here is a massive shift in how FERC must evaluate these projects. Historically, when reviewing applications for LNG terminals, federal agencies had to perform a comprehensive “public interest” review—meaning they had to weigh the economic benefits against potential environmental, safety, and local community impacts. This bill changes that rule completely. It mandates that FERC must automatically consider the import or export of natural gas to be “consistent with the public interest.” This isn't a subtle tweak; it’s a full removal of the requirement for a substantive, case-by-case public interest balancing test. For a company looking to build a massive new export terminal near a coastal community, this removes one of the biggest regulatory hurdles and speeds up the timeline significantly. It’s like switching from a full safety inspection to an express lane where the checklist is already pre-approved.

Centralizing Power at FERC

To make this streamlined process happen, the bill gives FERC the exclusive say on approving or denying applications for building, expanding, or running any facility that exports or imports natural gas. This means that other federal agencies that previously had significant input or even veto power over certain aspects of these projects may find their authority sidelined or diminished. If you’re a local resident concerned about the air quality impacts of a new terminal, your fight now focuses almost entirely on one agency—FERC—which is now legally required to favor the project’s public interest standing. The bill explicitly removes the previous subsections (a) through (c) of Section 3 of the Natural Gas Act, which contained the previous review standards, cementing FERC’s new, powerful role.

What It Means for the Real World

For the energy industry, this bill brings certainty and speed, making it easier and faster to secure the necessary permits to invest billions in new infrastructure. This could mean more American gas exports, potentially lowering costs for international buyers and increasing domestic production. However, for communities located near proposed or existing LNG sites, this is a major concern. The requirement that FERC must automatically find these projects in the public interest effectively silences local environmental and safety concerns that were previously part of the required review process. Imagine a small town facing a proposal for a large industrial facility; under the old rules, they had a strong legal avenue to argue that the environmental cost outweighed the public benefit. Under this new structure, that legal argument is much weaker, as the 'public benefit' is legally presumed.

The Presidential Exception

One important caveat the bill includes is that this new structure doesn't override the President's existing power to impose trade sanctions or restrictions. The President can still prohibit gas imports or exports to specific entities, particularly those designated as “state sponsors of terrorism,” under existing laws like the International Emergency Economic Powers Act. This means that while FERC is in charge of the domestic siting permits, the White House maintains control over who the U.S. trades with on a geopolitical level.