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S 883119th CongressIn Committee

Unlocking Domestic LNG Potential Act of 2025

Introduced: Mar 6, 2025
Standard Summary
Comprehensive overview in 1-2 paragraphs

The Unlocking Domestic LNG Potential Act of 2025 would, according to the text provided, shift the federal regulation of LNG facilities so that the Federal Energy Regulatory Commission (FERC) has exclusive authority to approve or deny applications for siting, construction, expansion, or operation of facilities that export or import natural gas, including LNG terminals. The bill would also add a strong public-interest presumption in favor of approvals, by requiring FERC to deem exports or imports of natural gas to be consistent with the public interest when evaluating applications. It reconfigures the Natural Gas Act’s section on LNG terminals, and adds a rule of construction stating that the President retains authority under existing laws to prohibit imports or exports of natural gas, including in cases involving state sponsors of terrorism. It defines “state sponsor of terrorism” and lists several federal laws related to sanctions and emergency powers that would still apply. In short, the bill centralizes LNG export/import approvals under FERC, creates a strong pro-approval presumption, while preserving national-security and sanctions authorities under other laws. It also clarifies that other federal agencies’ authorities remain intact only to the extent provided by the Act.

Key Points

  • 1Exclusive FERC authority: The Federal Energy Regulatory Commission would become the sole federal decision-maker for the siting, construction, expansion, or operation of facilities that export or import natural gas, including LNG terminals.
  • 2Public-interest presumption: When evaluating an LNG export/import project, FERC would deem the action to be in the public interest, effectively creating a strong default in favor of approval.
  • 3Structural change to the Natural Gas Act: Section 3 of the Natural Gas Act would be reorganized and renumbered to implement the new FERC-centric framework for LNG terminals.
  • 4Rule of construction on prohibitions: The Act includes a rule of construction clarifying that the President’s authority to prohibit imports or exports (under emergency/sanctions powers) is not limited by this Act.
  • 5State sponsor of terrorism and sanctions framework: The bill defines “state sponsor of terrorism” and enumerates related laws (e.g., EM Powers Act, National Emergencies Act, Trading with the Enemy Act) that could still authorize prohibitions or sanctions, ensuring national-security tools remain available.

Impact Areas

Primary affected group/area: LNG project developers, natural gas exporters/importers, and operators of LNG terminals, who would interact exclusively with FERC for approvals.Secondary affected group/area: Federal regulatory agencies (e.g., DOE, which historically had a role in LNG export licensing), state and local governments, and communities near proposed LNG facilities.Additional impacts:- Potentially faster or more predictable permitting outcomes due to a public-interest presumption, which could influence investment and project timelines.- Stronger alignment of LNG permitting with federal energy policy administration, while preserving a broad national-security framework for prohibitions and sanctions.- Interplay with environmental, safety, and local concerns remains via FERC’s project reviews, but the presumption shifts the calculus toward approval unless other legal constraints apply.
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