The Natural Gas Pipeline Safety Act of 1968, as amended, (NGPSA) authorizes the U.S. Department of Transportation to regulate pipeline transportation of natural (flammable, toxic, or corrosive) gas and other gases, as well as the transportation and storage of LNG. Operator compliance with federal and state pipeline safety regulations is monitored through a comprehensive inspection and enforcement program and through direct dialogue with operator management. State agencies work in partnership with PHMSA to assure jurisdictional operators are meeting requirements for safe, reliable, and environmentally sound operation of their facilities. More information is available regarding federal/state partnerships.
FERC is responsible for authorizing the siting and construction of onshore and near-shore LNG import or export facilities under Section 3 of the Natural Gas Act. Additionally, FERC inspects peak-shaving, LNG satellite, and vehicular fuel LNG plants connected to the interstate gas transmission system. The Commission, under Section 7 of the Natural Gas Act, also issues certificates of public convenience and necessity for LNG facilities engaged in interstate natural gas transportation by pipeline. As required by the National Environmental Policy Act (NEPA), FERC prepares environmental assessments or impact statements for proposed LNG facilities under its jurisdiction. FERC is the lead federal agency under NEPA to analyze the environmental, safety, security, and cryogenic design of proposed LNG facilities.
FERC regulations are found in Title 18 Code of Federal Regulations (18 CFR) Chapter 1, Subchapter E. LNG projects which are approved and built are subject to FERC oversight for as long as the facility is in operation. As of 2016, FERC listed 24 operational LNG facilities under its regulatory jurisdiction. Follow this link for additional details on FERC’s responsibilities in regulating LNG facilities and maps showing existing, approved, and proposed North American LNG projects, as well as FERC jurisdictional LNG peak-shaving plants.
For additional details on FERC’s LNG siting process, visit http://www.ferc.gov/industries/gas/indus-act/lng.asp.
The USCG has authority and regulates the marine transfer areas for each new waterfront facility handling LNG. USCG also regulates new construction in the marine transfer area for each existing waterfront facility handling LNG. The USCG conducts waterway suitability assessments to address navigation safety and port security issues associated with LNG ship traffic. USCG regulations pertaining to waterfront facilities handling LNG are identified in 33 CFR Part 127. For additional details, see the USCG Navigation And Vessel Inspection Circular (NVIC) No. 01-2011.
The USCG and the U.S. Department of Transportation’s (DOT) Maritime Administration (MARAD) share responsibility for the safety, security, and environmental review of deepwater port LNG terminals.
The USCG is responsible to develop and maintain regulations and standards for deepwater ports and for processing deepwater port license applications. The Maritime Transportation Security Act of 2002 (MTSA) amended the Deepwater Port Act (DWPA) of 1974, 33 United States Code 1501, et seq., to include natural gas. This allowed for the construction and operation of offshore facilities to import and process natural gas for distribution through the country’s pipeline infrastructure. The USCG coordinates agency and public reviews and participation in the deepwater port licensing process. The USCG manages the development of a single environmental impact statement (EIS) for compliance with the National Environmental Policy Act of 1969 (NEPA) for deepwater port license applications and associated federal permits. The USCG develops guidance for oversight of post-licensing activities associated with the development of deepwater ports including the design, construction, and activation phases, environmental monitoring programs, operational procedures, risk assessments, security plans, safety and inspections. The USCG also maintains and updates the regulations for deepwater ports, found in 33 Code of Federal Regulations (CFR) Subchapter NN. Follow this link for additional details on the U.S. Coast Guard role in deepwater port siting.
After the USCG issues an EIS, MARAD decides whether to issue the deepwater port license. If MARAD decides to issue the license, the Governor of the adjacent coastal State must also approve the license before it is granted.
For additional details on the MARAD deepwater port licensing program, visit http://www.marad.dot.gov/ports_landing_page/deepwater_port_licensing/deepwater_port_licensing.htm
