The Transportation Department’s safety agency is proposing a new fee to recover the costs of siting reviews for new and expanded liquefied natural gas facilities.
The new fee — laid out in a draft rule published Monday — would apply to LNG facilities whose project design and construction costs total $2.5 billion or more. It would ensure the Pipeline and Hazardous Materials Safety Administration (PHMSA) can carry out siting reviews without diverting resources from other areas, according to a federal notice.
The U.S. was the world’s largest exporter of LNG in 2023, with applications for new facilities steadily increasing in recent years. PHMSA’s siting review — which factors into an evaluation of LNG facilities by the Federal Energy Regulatory Commission — assesses materials from applicants to check their compliance with federal safety regulations.
PHMSA is proposing an up-front fee for estimated personnel costs in carrying out the reviews and then a “true-up payment” at the end of that review should the agency’s costs exceed the estimate. In the notice, the agency said it completes an average of seven siting reviews each year.
