LNG Public Interest Determination Act of 2025
LNG Public Interest Determination Act of 2025 would overhaul how the United States reviews and approves exports of natural gas. The bill shifts the authorization from a standard-focused process to a stringent public-interest test overseen by the Secretary of Energy. Before any LNG export can proceed, an order must be issued only if the Secretary finds the export is in the public interest, after hearings and thorough assessments. These assessments must evaluate (1) climate impacts (using lifecycle greenhouse gas data and a 20-year methane global warming potential), (2) the economic impact on U.S. energy consumers (with visibility into various subgroups), and (3) environmental justice concerns (including the burdens on rural, low-income, minority, and other vulnerable communities). The bill also requires expanded public participation, NEPA-level review as a major federal action, prompt timelines, and new procedural rules. It additionally makes corresponding amendments to the Natural Gas Act and directs the administration to issue implementing regulations within one year of enactment. In practical terms, the bill would slow or condition LNG exports more strictly, tying export decisions to quantified climate costs, domestic energy price effects, and EJ considerations, and would require more extensive regulation and public input than the current framework.
Key Points
- 1New public-interest standard for LNG exports: The Secretary of Energy may issue an export order only if the proposed exportation is found to be in the public interest, based on hearings and three core assessments (climate, economic, environmental justice).
- 2Detailed assessments required:
- 3- Climate change assessment: lifecycle greenhouse gas emissions (extraction, transport, liquefaction, storage, regasification, and consumption), using the latest science and the 20-year methane GWP; compares emissions to a baseline aligned with US decarbonization commitments; evaluates effects on clean energy investments and technology exports; includes social cost of emissions and climate-related economic risks.
- 4- Economic assessment: analyzes expected impacts on all U.S. consumers, with specific focus on low-income households, working families, small businesses, manufacturers, state/local governments, and fertilizer producers/users.
- 5- Environmental justice assessment: evaluates impacts on previously burdened communities, fishing livelihoods, racial/socioeconomic disparities, and compliance with civil rights laws, in line with Executive Order 14096.
- 6Public participation and accessibility: The DOE must provide meaningful opportunities for public comment on the public-interest finding and on any informing studies, with attention to barriers faced by environmental-justice communities (disability access, language, resources).
- 7Timelines and NEPA status: DOE must issue the public-interest determination within one year after the later of (a) the final environmental impact statement from FERC or (b) completion of all required assessments. Issuing an LNG export order under this act would be treated as a major Federal action under NEPA.
- 8Process and regulatory changes:
- 9- The Federal Energy Regulatory Commission (FERC) remains involved through required EIS timing, but the process coordination and hearing functions shift to DOE.
- 10- The act terminates the categorical exclusion for LNG export approvals (B5.7), ensuring fuller environmental review.
- 11- Conforming amendments to the Natural Gas Act adjust preexisting language related to exports and trade agreement constraints.
- 12- A rulemaking is required within one year to implement the act and its amendments.