FERC Proposes to Streamline Blanket Authorizations for Liquefied Natural Gas Facilities
6 min read
On October 15, 2026, the Federal Energy Regulatory Commission (FERC) issued a Notice of Proposed Rulemaking (NOPR)1 in order to establish a comprehensive blanket authorization program for liquefied natural gas (LNG) plants. The NOPR is modeled on the existing blanket certificate framework for interstate natural gas pipelines subject to FERC jurisdiction.2 Under the new program, FERC would permit operators of LNG import and export terminals to undertake eligible facility replacements, operational modifications, capacity uprates, and limited out-of-footprint expansions without needing to secure case-specific authorization orders.
Regulatory Context
Pursuant to Section 3 and Section 7 of the Natural Gas Act (NGA), FERC holds authority over the siting, construction, expansion, and operation of LNG import and export terminals as well as interstate LNG peak shaving plants. While interstate natural gas pipelines have relied on the Part 157, Subpart F blanket certificate program to conduct certain construction and operational modifications (either automatically or following prior notice) to previously certificated facilities, to date, this blanket certificate authority has not extended to LNG export and peak shaving facilities.3 As a result, operators of existing LNG plants have been required to file case-specific amendment applications and be subject to new public interest determinations by FERC for approval of facility modifications, equipment replacements, and capacity expansions after the initial certificate authorization had been granted.
In light of the United States becoming the leading exporter of LNG since 2023, and the increasing familiarity of FERC staff in evaluating more than 100 LNG facility applications over the past 20 years (issuing over 4,500 engineering, safety, security, and reliability requirements in coordination with other relevant federal agencies),4
FERC has proposed extending certain blanket certificate authority to LNG project operators and developers. On November 20, 2025, FERC issued a Notice of Inquiry to explore whether and, if so, how to revise its regulations in order to allow for LNG authorizations without case-specific approval.5 Following the review of 18 comments from interested parties and stakeholders during the ensuing submission period, FERC issued the NOPR at its October 2026 open meeting.
Proposed Rule
In the NOPR, FERC seeks to codify a new Subpart D under Part 153 of its regulations6 to establish three tiers of blanket certificate authorization for both NGA Section 3 LNG import and export terminals and NGA Section 7 interstate LNG peak shaving plants. The eligible activities are classified as follows:
- Automatic Authorization: Activities that do not increase an LNG plant's authorized capacity, expand the authorized vertical or horizontal extents within the plant's physical footprint (defined as the area located within both the plant's security systems and natural hazard protections), or cause flows, liquid levels, volumes, pressures, temperatures, fluid compositions, or structural loads to exceed applicable design limits.
- This tier encompasses facility abandonments that do not impact contracted customers or operational safety, in-kind or upgraded replacements, modifications, or additions across nine core LNG component classes7 and 18 auxiliary system categories, as well as related Section 3 pipeline tie-in facilities matching Part 157 automatic parameters. Operators are still required to notify affected landowners and local municipalities at least 45 days before construction (unless the activity involves no ground disturbance, does not increase air or noise emissions, and poses no adverse safety impacts) and document their progress in semi-annual operational reports.
- 60-Day Prior Notice: Activities that may increase the plant's authorized capacity, provided those modifications remain within the plant's existing footprint and do not cause operating conditions to exceed the design limits of the affected or remaining facilities.
- The NOPR assigns debottlenecking and construction efficiency capacity uprates to this tier, rather than automatic authorization, given that throughput increases implicate marine vessel traffic, hazard modeling, and interagency reviews requiring prior notice scrutiny. Accordingly, in-footprint component replacements, upgrades, modifications, or additions that increase authorized capacity within existing design limits (alongside related Section 3 pipeline construction matching Part 157 prior notice parameters) may proceed following a 60-day notice and protest period.
- 90-Day Prior Notice: Activities that involve the construction and operation of new LNG infrastructure (such as liquefaction trains, LNG storage tanks, and marine loading berths) and related auxiliary systems located outside the existing footprint of the facility.
- To qualify, an expansion must sit adjacent to the approved footprint on previously disturbed or developed land or waterways within industrially zoned or unzoned areas, comply with all underlying engineering and environmental conditions, utilize the same type of facilities (in-kind or upgraded) previously authorized at that plant, and permanently occupy no more than 25 acres. It is worth noting that project segmentation would remain strictly prohibited under proposed Section 153.108(f)(1). Based on prior expansion orders, FERC staff found that a 25-acre limit accommodates two LNG storage tanks, one large liquefaction train of approximately 7.8 million metric tons per annum (MTPA) (or 1.08 billion cubic feet per day (Bcfd)), ten smaller liquefaction blocks totaling 12.5 MTPA (1.73 Bcfd), or five combined-cycle power generation facilities.
Unlike the Part 157 pipeline blanket authorization program, the NOPR does not impose monetary project cost limits across any of the three tiers. FERC concluded that equipment price volatility renders project cost a poor proxy for environmental or safety impacts, noting that Section 3 terminals do not implicate captive ratepayer protections. For Section 7 LNG plants, automatic activities receive a presumption of rolled-in rate treatment, while 60-day and 90-day prior notice activities remain subject to Part 157 rate policies.8
Implications & Outlook
FERC will require that both existing and prospective Section 3 and Section 7 operators file an initial application for blanket authorization under proposed Section 153.104; the NOPR mirrors the approach in the interstate natural gas pipeline blanket certificate program. All authorized blanket activities must then be placed into service within five years. For both 60-day and 90-day prior notice filings, operators must notify affected landowners and local municipalities within three business days of being assigned a docket number, which in turn initiates the applicable protest period; substantive protests will convert the filing into a case-specific NGA application.
Prior to commencing construction on automatic projects or filing prior notice requests, operators must satisfy 23 enumerated federal environmental and safety statutes, obtain a State or Tribal Historic Preservation Officer “no effect” finding under the National Historic Preservation Act, complete informal consultation or document a “no effect” finding under the Endangered Species Act, and secure state consistency concurrence or waiver under the Coastal Zone Management Act (CZMA). For 60-day and 90-day prior notice projects, FERC will prepare an Environmental Assessment pursuant to its authority under the National Environmental Policy Act (or operate under an existing categorical exclusion and obtain two notices to proceed, from the Office of Energy Projects, relating to hazardous fluid introduction and in-service commencement).
Despite the changes intended to streamline the program, the NOPR furnishes open questions for stakeholder comment, such as whether the 25-acre limit is appropriate and whether FERC should adopt stricter standing criteria for prior notice protestors to prevent strategic delays. And, since state CZMA consistency determinations and federal interagency consultations must be completed before filing prior notice requests, LNG operators and project developers still should carefully manage potential regulatory lead times during the authorization process.
Comments on the NOPR are due 60 days after the date of its publication in the Federal Register.
1 FERC Docket No. RM26-2-001, Notice of Proposed Rulemaking re: Authorizations for Certain Activities at Liquefied Natural Gas Plants RIN 1902-AG43 to amend Parts 2, 153, and 375 of Title 18 of the Code of Federal Regulations (Issued on Oct. 15, 2026). Available at: https://www.ferc.gov/media/c-1-rm26-2-001.
2 For more information on the interstate natural gas pipeline authorization program, please refer to our previous article: FERC proposes to expand blanket certificate authorizations for natural gas pipelines | White & Case LLP.
3 Interstate Pipeline Certificates for Routine Transactions, Order No. 234, FERC Stats. & Regs. ¶ 30,368; Revisions to the Blanket Certificate Regulations & Clarification Regarding Rates, Order No. 686, 117 FERC ¶ 61,074.
4 Coordinating federal agencies typically include the Pipeline and Hazardous Materials Safety Administration, the United States Coast Guard, and the Department of Defense. Memorandum of Understanding Between the Federal Energy Regulatory Commission and the Department of Defense to Ensure Consultation and Coordination on the Effect of Liquefied Natural Gas Terminals on Active Military Installations (Nov. 21, 2007, updated Aug. 29, 2014); Interagency Agreement Among the Federal Energy Regulatory Commission, United States Coast Guard, and Research and Special Programs Administration for the Safety and Security Review of Waterfront Import/Export Liquefied Natural Gas Facilities (Feb. 11, 2004); Memorandum of Understanding Between the Department of Transportation and the Federal Energy Regulatory Commission Regarding Liquefied Natural Gas Transportation Facilities (Aug. 31, 2018).
5 Authorizations for Certain Activities at Liquefied Nat. Gas Plants, 193 FERC ¶ 61,141 (Issued on Nov. 20, 2025).
6 18 Code of Federal Regulations Sections 153.102 through 153.109.
7 The nine (9) LNG component classes include: piping and valves, process vessels, storage containers, rotating equipment, fired equipment, instrumentation and controls, safety instrumented systems, buildings and structures, and electrical components.
8 FERC has separately proposed revisions to its Part 157 blanket certificate rules, including increases in the capital expenditure thresholds applicable to each tier of authorization. Revisions to the Blanket Certificate Program, 195 FERC ¶ 61,128 (2026).
White & Case means the international legal practice comprising White & Case LLP, a New York State registered limited liability partnership, White & Case LLP, a limited liability partnership incorporated under English law and all other affiliated partnerships, companies and entities.
This article is prepared for the general information of interested persons. It is not, and does not attempt to be, comprehensive in nature. Due to the general nature of its content, it should not be regarded as legal advice.
© 2026 White & Case LLP
