The US House of Representatives has passed legislation to transfer the authority for approving liquefied natural gas (LNG) export licenses from the Department of Energy (DoE) to the Federal Energy Regulatory Commission (FERC). This change is intended to accelerate the permitting process for the US LNG industry.

Legislative Details and Vote

The bill, known as the Unlocking our Domestic LNG Potential Act, was passed with a vote of 217 to 188. It received support from eleven Democrats, while 28 House members did not vote. The legislation now proceeds to the Senate for further review.

Current and Proposed Approval Process

Under the current system, the Department of Energy is responsible for issuing LNG export authorizations, while the Federal Energy Regulatory Commission handles approvals for LNG infrastructure development. The new legislation would consolidate the export licensing responsibility entirely under FERC.

Political Context and Rationale

The Department of Energy's role in LNG export approvals became a significant political issue. The legislation is promoted as a reform to a "broken, politically weaponized approval process" to streamline permitting. This follows a period where former President Joe Biden blocked new LNG authorizations due to environmental concerns, a decision later reversed by President Donald Trump, leading to several export licenses being approved this year.

Industry Support

Industry representatives, such as the president of the Energy Workforce and Technology Council, argue that the bill eliminates "needless bureaucracy" and aligns with rising global demand for reliable American energy, suggesting that current processes hinder the US from meeting this demand effectively.