Federal Statutes and Regulations

The following materials represent various statutes and regulations that have been enacted or promulgated by the federal government. While the Center makes every effort to update and provide current resources, be aware that statutory and regulatory language is subject to change. As a result, the Center offers no warranty or other guarantee regarding the timeliness or accuracy of the information presented.

A. Department of Energy

Natural Gas Act, Section 3(a) provides that anyone wanting to import or export natural gas from and/or to a foreign country must obtain approval from the Department of Energy (15 U.S.C. §717b(a)).

Under Natural Gas Act, Section 3(c), DOE applications to export natural gas to countries with which there is a Free Trade Agreement (FTA) are automatically deemed consistent with the public interest and must be granted without modification or delay (15 U.S.C. §717b(c)).

The U.S. entered into FTA agreements with a total of 20 countries, including Australia, Bahrain, Canada, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Israel, Jordan, Korea, Mexico, Morocco, Nicaragua, Oman, Panama, Peru and Singapore.

Relevant statutes and regulations:

Natural Gas Act of 1938, as amended through P.L. 109-58 (Aug. 8, 2005); 15 USC Chap. 15B § 717 et seq.

10 CFR Part 590 – Administrative procedures with respect to the import and export of natural gas

B. Federal Energy Regulatory Commission

Under Natural Gas Act, Section 3(e), FERC is vested with exclusive authority to approve or deny applications for the siting, construction, and operation of onshore LNG export terminals and offshore terminals located in state waters, or their expansion.

Under Natural Gas Act, Section 3A, FERC must complete an environmental review of the proposed LNG export terminal project that satisfies the requirements set out by the National Environmental Policy Act (NEPA) Review Process.

See EPA webpage – National Environmental Policy Act Review Process for further information.

Relevant statutes and regulations:

Natural Gas Act of 1938, as amended through P.L. 109-58 (Aug. 8, 2005); 15 USC Chap. 15B § 717 et seq.

National Environmental Policy Act of 1969, as amended through P.L. 97-258 (Sep. 13, 1982); 40 CFR 1508.18

18 CFR Chapter 1, Subchapter E – Regulations under Natural Gas Act

C.  U.S. Coast Guard and Department of Transportation’s Maritime Administration

The Deepwater Port Act provides authority to the U.S. Coast Guard to approve or deny applications for the ownership, construction, operation and decommissioning of deepwater port structures located beyond U.S. territorial sea for the import and export of natural gas.

The U.S. Coast Guard and Maritime Administration share responsibility for the safety, security and environmental review of deepwater port LNG terminals. The Maritime Administration also is responsible for determining the financial capacity of potential licensees.

Relevant statutes and regulations:

Deepwater Port Act of 1974, as amended through P.L. 113-281 (Dec. 18, 2014); 33 USC §§ 1501 et seq.

33 CFR Part 127 – Waterfront facilities handling liquefied natural gas and liquefied hazardous gas

33 CFR Subchapter NN – Deepwater Ports

D. Pipeline and Hazardous Materials Safety Administration

The PHMSA is responsible for establishing and enforcing safety standards for LNG facilities used for the transportation of natural gas through pipeline that is subject to Federal pipeline safety laws.

Relevant statutes and regulations:

49 CFR Part 193 – Liquefied Natural Gas Facilities: Federal Safety Standards

Notice of Proposed Rulemaking; Hazardous Materials: Liquefied Natural Gas by Rail, 84 FR 56964 (Oct. 24, 2019)

Note: The proposed rule would allow liquefied natural gas (LNG) to be shipped via rail tank cars, which is currently prohibited. Comments closed on Jan. 13, 2020.

Final Rule; Hazardous Materials: Liquefied Natural Gas by Rail, 85 FR 44994 (Jul. 24, 2020) 

Note: The Final Rule became effective on Aug. 24, 2020 and allows transportation of liquefied natural gas (LNG) via DOT-113C120W specification rail tank cars.