PHMSA and FERC Tout New MOU to Improve Agency Coordination on the Review of LNG Facilities

On September 20, at the open meeting of the Federal Energy Regulatory Commission (FERC), FERC’s General Counsel, James Danly, and Howard “Skip” Elliott, Administrator of the Pipeline and Hazardous Materials Safety Administration (PHMSA), presented the recent Memorandum of Understanding (MOU) between the two agencies to establish a framework for improving coordination and the exchange of information when performing the siting and safety review of FERC-jurisdictional proposed liquefied natural gas (LNG) facilities.  According to Mr. Danly, the new MOU will enable the Commission to act on LNG applications more quickly, reduce the burden on applicants, and facilitate increased exports.

Mr. Danly explained that the number of applications for LNG export terminals has increased substantially in the last eight years, and FERC’s process of certifying that these projects meet federal safety standards has become increasingly complex and burdensome.  Traditionally, under that process, FERC staff made a preliminary determination that the proposed LNG facility met PHMSA’s safety standards, but the process requires numerous queries to PHMSA and applicants before FERC staff has sufficient information to make its determination.  According to Mr. Danly, the MOU will end this duplicative and iterative process and will allow PHMSA to make a preliminary determination on safety issues and certify it to the Commission. 

Administrator Elliott said the MOU will bolster America’s status as a net exporter of LNG, adding that the U.S. already exports LNG to over 25 countries internationally.

PHMSA Rulemakings Update.  The tables below summarize the status of the PHMSA’s pending pipeline safety rulemaking initiatives as reflected in the Department of Transportation’s (DOT) August Significant Rulemaking Report and the Office of Management & Budget’s (OMB) Office of Information and Regulatory Affairs (OIRA) Spring 2018 Unified Agenda of Regulatory and Deregulatory Actions.  The Unified Regulatory Agenda appears in two principal parts, Current Agenda Agency Regulatory Entries for Active Actions and Current Long Term Actions.  DOT has not released a September Significant Rulemaking Report.