Bill Gives FERC Exclusive Authority Over LNG Terminals, Mandates 'Public Interest' View for Exports

This bill, the 'Unlocking Domestic LNG Potential Act of 2025,' proposes a significant shift in how the U.S. approves facilities for exporting and importing liquefied natural gas (LNG). It amends Section 3 of the Natural Gas Act to give the Federal Energy Regulatory Commission (FERC) the sole and exclusive authority to approve or deny applications for the siting, construction, expansion, or operation of these terminals. Critically, the bill directs FERC to deem the import or export of natural gas itself as "consistent with the public interest" when reviewing these applications.

One Stop Shop: FERC Gets Sole Power Over LNG Projects

Think of this as consolidating power. Currently, multiple agencies might weigh in on different aspects of an LNG project. This bill streamlines that process by making FERC the ultimate decision-maker specifically for the facility's approval under the Natural Gas Act. The text explicitly states FERC gets "exclusive authority" for these decisions. For companies looking to build or expand LNG terminals, this could mean a faster, more predictable path to getting a yes or no, potentially cutting through red tape.

Public Interest = Green Light?

The real kicker here is the mandate for FERC regarding the "public interest." Instead of weighing various factors to determine if an export/import project serves the public interest, the bill requires FERC to essentially start with the assumption that the act of exporting or importing gas is in the public interest. This significantly reframes the approval process, potentially lowering the bar for project approval and possibly giving less automatic weight to counterarguments based on environmental impact or domestic energy prices.

Hold Your Horses: Presidential Powers Remain

While FERC gets the reins on facility approvals, the bill carves out important exceptions. It clarifies that this change doesn't override the President's authority under the Constitution or other laws (like the International Emergency Economic Powers Act) to block imports or exports. This power is specifically highlighted concerning countries designated as state sponsors of terrorism. So, while FERC might approve a facility, the President could still theoretically block its use for exports to certain nations based on foreign policy or national security concerns. The bill also states it doesn't generally affect other federal agencies' existing responsibilities unless directly specified.

Gas Exports Up, Bills Up? The Real-World Ripple Effect

So, what does this mean for everyday folks? Giving FERC this focused authority and pro-export mandate could accelerate the build-out of LNG export terminals. Supporters might argue this boosts the U.S. economy and provides energy security to allies. However, concentrating power in FERC and pre-determining the "public interest" aspect could lessen scrutiny on environmental impacts or concerns from communities near proposed facilities. Furthermore, exporting more natural gas could potentially tighten domestic supply, which might translate to higher heating and electricity bills for consumers here at home. This bill essentially prioritizes simplifying the path for LNG exports, shifting the balance of considerations FERC is required to make.