The Project Approval Process
Before any LNG facility can be constructed or operated in the United States, it must first apply for a number of important permits, resulting in a rigorous and comprehensive review process by federal, state and local agencies.
Under the Natural Gas Act, the construction and operation of all LNG facilities in the United States falls under the primary jurisdiction of the Federal Energy Regulatory Commission (FERC). Other federal agencies are significantly involved in the review process, including the United States Coast Guard, which is responsible for approving security measures for both LNG facilities and LNG vessel transit.
An LNG facility must also obtain a number of important state permits, including the Site Location of Development Act permit (SLODA), which assesses the proposed site design, and the Natural Resources Protection Act permit (NRPA), which assesses environmental impacts.
Many state agencies are directly involved in reviewing or commenting upon these permits. Chief among them is the Maine Department of Environmental Protection, which reviews both the SLODA and NRPA applications. Next, the applications are then reviewed and approved by Maine’s Bureau of Environmental Protection (BEP). Lastly, the Maine State Planning Office must ensure that the federal permits are consistent with Maine coastal zone policies.
On a local level, an LNG project must gain approval from the local community in which it is proposing to build its facility. Not only does this mean building support among the community and working with local authorities, but the LNG facility must receive Site Plan Approval from the local Planning Board.
All these review agencies have established specific standards, which are regularly updated to keep pace with changing technologies and other factors such as potential site impacts and changes in federal, state and local laws and ordinances.
Public participation at every level – federal, state, and local – is strongly encouraged in this process.
Furthermore, all LNG facility applicants are required to clearly demonstrate how they will actively engage members of the public and other stakeholders early in the application process to ensure that potential issues can be identified before the application moves forward in the review process. Click here to learn more about the public participation and review process.
Because each application may have unique features and attributes, it is difficult to accurately estimate the length of time involved in the overall review process. However, once an application has been submitted to FERC, the project timeline for any LNG project occurs in three separate phases:
- Pre-filing Technical Consultation
- Pre-Decision Review
- Post-Decision Review & Inspection
Click here for more details about project timeline
For more information, please click here to download a guide to the Environmental Protection Agency’s "Liquefied Natural Gas Regulatory Roadmap (2.5 mb pdf file)"