FERC Proposes First Blanket Authorization Program for LNG Plants

The Federal Energy Regulatory Commission (FERC) on October 15, 2026, issued a Notice of Proposed Rulemaking (NOPR) in Docket No. RM26-2-001 that would amend Parts 2, 153 and 375 of its regulations to allow qualifying activities at liquefied natural gas (LNG) terminals authorized under Section 3 of the Natural Gas Act (NGA) and LNG plants certificated under Section 7 to proceed without a case-specific authorization order.

If finalized, the rule could replace full amendment applications for a meaningful category of repairs, replacements, uprates and expansions. The program would not be self-executing; however, an operator would first need to obtain blanket authority, and individual activities would remain subject to detailed environmental, engineering, safety, notice and reporting conditions.

The Proposed Three-Tier Framework

Automatic Authorization. Under the automatic authorization tier, operators could abandon, replace, modify or install existing LNG facilities, auxiliary systems and components without an advance filing, provided that the activity 1) does not increase authorized capacity, 2) remains within the authorized footprint and design limits, and 3) does not materially increase safety, reliability or environmental impacts. Operators would report completed activities in their semi-annual operational reports. Operators generally would also need to notify affected landowners and municipalities at least 45 days before beginning construction that involves ground disturbance, increased air or noise emissions, or increased public safety risk.

60-Day Prior Notice. Under the 60-day prior notice tier, operators could make in-footprint replacements, upgrades, modifications and additions that increase authorized capacity, subject to a 60-day notice and protest period. The activity would be authorized at the end of that period if no protest is filed, or if all protests are withdrawn or dismissed. If a protest remains unresolved, the request would convert into a case-specific application under Section 3 or Section 7 of the NGA.

90-Day Prior Notice. Under the 90-day prior notice tier, operators could construct new LNG facilities and auxiliary systems within or adjacent to the authorized footprint. An expansion outside the footprint would qualify only if it 1) permanently occupies no more than 25 additional acres of previously disturbed or developed land or waterways, 2) is located in an industrially zoned or unzoned area, and 3) uses the same or upgraded facility types previously evaluated for the plant. Operators could not segment a project to fit within the acreage limit.

Obtaining and Using Blanket Authority

Existing Section 3 authorization holders and Section 7 LNG certificate holders would apply for blanket authority under proposed Section 153.104, and new applicants could request blanket authority as part of their underlying applications. FERC would delegate approval authority to the Director of the Office of Energy Projects and could deny or rescind blanket authority for noncompliance. Each prior notice filing would need to include a detailed project description, engineering data, environmental analysis, permit and consultation information, and project schedule.

Key Conditions and Other Elements

NEPA Review. The level of environmental review would depend on the type of activity:

• Automatic activities. Covered by a programmatic National Environmental Policy Act (NEPA) document prepared by FERC staff.
• Prior notice projects. Project-specific review through a categorical exclusion determination or an environmental assessment.
• Categorical exclusions. The NOPR does not itself create any new categorical exclusions.

Agency Coordination. Prior notice applicants would need to obtain a Pipeline and Hazardous Materials Safety Administration Letter of Determination. In addition, Section 3 filings would address input from state safety agencies and emergency responders.

Engineering Approvals. Prior notice projects would need written FERC staff authorization at two stages: 1) before commissioning or introducing hazardous fluids, and 2) before placing facilities in service.

No Cost Cap. Unlike the pipeline program, LNG eligibility would turn on physical and operational criteria rather than project cost, although related pipeline facilities would remain subject to applicable cost limits.

Five-Year Deadline. Blanket activities would need to be placed in service within five years of authorization, absent an extension.

Pre-Filing Waiver and Critical Energy Infrastructure Information (CEII). Two procedural features would apply to blanket activities:

• Pre-filing. FERC would waive the pre-filing process.
• Public summaries. Operators would need to provide public summaries of specified non-public information while continuing to protect CEII.

Commissioner Views

Commissioner Judy Chang concurred separately but questioned whether acreage alone is an adequate proxy for minimal environmental and safety impacts. The Commissioner requested comments on cumulative limits, successive expansions and whether applicants should affirmatively demonstrate that facilities on previously unreviewed land will not have significant environmental effects.

Conclusion and Next Steps

The NOPR is a significant potential change in how FERC authorizes modifications and expansions at LNG facilities and could provide a clearer pathway for routine work, capacity uprates and some larger additions. Its practical value will depend on the final eligibility boundaries, ability to complete agency coordination before filing and frequency of protests. The 25-acre limit, cumulative expansions, segmentation, environmental demonstrations and protest procedures are likely to be central issues in the final rule and any judicial review.

Comments are due 60 days after the NOPR is published in the Federal Register and should reference Docket No. RM26-2-001.

Holland & Knight is available to help clients evaluate the proposal and prepare comments. For more information or questions, please contact the authors.

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel.