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). The stated objective of this change is 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 sponsored by a Republican representative from Texas. It passed with a vote of 217 to 188. The vote saw bipartisan support, with eleven Democrats voting in favor, while twenty-eight House members did not vote.

Current and Proposed Approval Process

Under the current system, the Department of Energy is responsible for authorizing LNG exports, while the Federal Energy Regulatory Commission handles the approval of related infrastructure projects. The new legislation would consolidate the export licensing responsibility entirely under FERC.

Political Context and Rationale

The legislation is a response to what proponents describe as a "broken, politically weaponized approval process." The issue of DoE export approvals became a significant political issue last year when the Biden administration blocked new LNG authorizations due to environmental concerns. This decision was later reversed by the subsequent administration, which has since approved several export licenses. Advocates for the bill, including industry representatives, argue that it removes "needless bureaucracy" and allows the US to meet rising global demand for its reliable energy.

Next Steps

The bill now moves to the Senate for consideration, where it will be led by a Republican senator from South Carolina.