News Release: August 31, 2018
FERC, PHMSA Sign MOU to Coordinate LNG Reviews
The Federal Energy Regulatory Commission (FERC) and the Pipeline and Hazardous Materials Safety Administration (PHMSA) within the U.S. Department of Transportation today signed an agreement to coordinate the siting and safety review of FERC-jurisdictional LNG facilities.
PHMSA is responsible for standards governing the location and design of LNG facilities. FERC is responsible for determining whether proposed FERC-jurisdictional LNG facilities are in the public interest.
The Memorandum of Understanding (MOU) establishes a framework for coordination between FERC and PHMSA to process LNG applications in a timely and expeditious manner while ensuring decision-makers are fully informed on public safety impacts. The MOU provides that PHMSA will review LNG project applications to determine whether a proposed facility complies with the safety standards set forth in PHMSA’s regulations, and that PHMSA will issue a letter to FERC stating its findings regarding such compliance. FERC will then consider PHMSA’s compliance findings in its decision on whether a project is in the public interest.
“FERC is pleased to collaborate with PHMSA to better leverage each agency’s expertise and to process LNG applications in the safest and most efficient way possible,” FERC Chairman Kevin J. McIntyre said. “I would like to thank DOT Secretary Chao and PHMSA Administrator Elliott for their collaboration and leadership.”
“PHMSA’s LNG safety experts are fully prepared to analyze current and future project proposals, evaluate their potential impact on public safety, and reduce barriers to moving these projects forward,” said PHMSA Administrator Skip Elliott.
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