US eyes blanket LNG and hydropower authorizations to streamline energy infrastructure permitting – Offshore-Energy.biz

Report on FERC’s Proposed Streamlining of Energy Infrastructure Permitting

Introduction: Aligning Regulatory Efficiency with Sustainable Development Goals

The U.S. Federal Energy Regulatory Commission (FERC) has initiated a public consultation process to reform its permitting procedures for liquefied natural gas (LNG) and hydroelectric projects. This initiative aims to establish blanket authorizations for certain activities, thereby reducing administrative burdens and accelerating the development and maintenance of critical energy infrastructure. The proposed measures directly support the achievement of several Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 13 (Climate Action).

Strategic Objectives and SDG Framework

The primary goal of the proposed regulatory changes is to enhance the efficiency of the energy sector while ensuring grid reliability. This aligns with the following sustainable development objectives:

• SDG 7 (Affordable and Clean Energy): By fast-tracking permits for hydroelectric projects, FERC aims to bolster a key source of clean and renewable energy. Streamlining processes for LNG facilities is positioned to ensure a stable and reliable energy supply, which is crucial for supporting the integration of intermittent renewables into the grid.
• SDG 9 (Industry, Innovation, and Infrastructure): The initiative focuses on building and maintaining resilient energy infrastructure. According to FERC Chairman Laura Swett, efficient project maintenance is vital for ensuring grid reliability. This regulatory innovation promotes sustainable industrialization and infrastructure modernization.
• SDG 13 (Climate Action): Facilitating upgrades and repairs at hydropower facilities strengthens the nation’s capacity for clean energy generation, contributing directly to climate change mitigation efforts.

Notices of Inquiry (NOIs) for Stakeholder Engagement

In a move that supports SDG 17 (Partnerships for the Goals), FERC has issued two Notices of Inquiry to solicit feedback from stakeholders. This inclusive approach ensures that the new procedures are well-informed and balanced. The two NOIs are as follows:

1. NOI RM26-2-000: Liquefied Natural Gas (LNG) Facilities: This inquiry seeks input on establishing streamlined procedures for authorizing activities at LNG plants under the Natural Gas Act. The goal is to create a framework for blanket authorizations that do not require case-specific orders, thereby improving efficiency in maintaining infrastructure critical for energy security.
2. NOI RM26-3-000: Hydropower Facilities: This inquiry explores potential changes to streamline the review and authorization of post-licensing activities at hydropower projects, including maintenance, repairs, and upgrades. By simplifying these processes, FERC intends to support the long-term viability and efficiency of this key renewable energy source, advancing both SDG 7 and SDG 13.

Policy Context and Future Outlook

This initiative follows previous actions by FERC, including the issuance of orders to remove unnecessary legislative requirements that were causing delays in natural gas infrastructure projects, based on petitions from the Interstate Natural Gas Association of America (INGAA). The current call for comments, due 60 days after publication in the Federal Register, represents a significant step toward creating a more agile regulatory environment. By aligning infrastructure permitting with the principles of sustainable development, FERC’s proposed reforms aim to foster a reliable, clean, and resilient energy future.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article primarily addresses issues related to two Sustainable Development Goals (SDGs):

• SDG 7: Affordable and Clean Energy
  
  This goal is central to the article, which discusses the infrastructure for both liquefied natural gas (LNG) and hydroelectric power. The U.S. Federal Energy Regulatory Commission’s (FERC) efforts to streamline permitting for these projects are aimed at ensuring a stable and reliable energy supply. The mention of “grid reliability” directly connects to the goal of providing reliable energy services. The focus on hydroelectric projects specifically addresses the “clean energy” aspect of SDG 7.
• SDG 9: Industry, Innovation and Infrastructure
  
  This goal is addressed through the article’s focus on building and maintaining critical energy infrastructure. The entire initiative by FERC to “cut the red tape for infrastructure permitting” is about improving the processes that support the development and upkeep of “quality, reliable, sustainable and resilient infrastructure.” The article highlights the need to build new infrastructure (“Energy infrastructure needs to be built now”) and efficiently maintain existing projects, which is a core component of SDG 9.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article’s content, the following specific SDG targets can be identified:

1. Target 7.1: By 2030, ensure universal access to affordable, reliable and modern energy services.
   
   The article’s repeated emphasis on ensuring “grid reliability” by efficiently maintaining and building LNG and hydroelectric projects directly supports this target. The statement by FERC Chairman Laura Swett highlights that these actions are necessary “to ensure grid reliability today and in the future.”
2. Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.
   
   This target is relevant due to the specific mention of streamlining processes for “hydroelectric projects.” The second Notice of Inquiry (NOI) seeks to simplify procedures for “maintenance, repairs, and upgrades to hydropower project infrastructure,” which facilitates the efficient operation and enhancement of a key renewable energy source.
3. Target 7.a: By 2030, enhance international cooperation to facilitate access to clean energy research and technology… and promote investment in energy infrastructure and clean energy technology.
   
   FERC’s goal to “provide regulatory certainty and fast-track infrastructure permitting” is a domestic policy action aimed at promoting investment in energy infrastructure. By simplifying regulations, the commission aims to make it easier and more attractive for companies to invest in and maintain both LNG (as a transition fuel infrastructure) and hydroelectric (clean energy) facilities.
4. Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure… to support economic development and human well-being.
   
   The article is fundamentally about the development and maintenance of energy infrastructure. The proposed “blanket authorizations” are a mechanism to develop and maintain this infrastructure more efficiently. The focus on LNG plants and hydroelectric projects is about ensuring the reliability and resilience of the energy grid, which is critical infrastructure.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article does not mention any explicit, quantitative indicators. However, it implies several indicators that could be used to measure the success of the proposed regulatory changes:

• Implied Indicator: Reduction in permit processing time for energy projects.
  
  The stated goal is to “cut the red tape” and “fast-track infrastructure permitting.” An effective indicator of progress would be the measurement of the average time it takes to receive authorization for maintenance, repairs, or upgrades at LNG and hydropower facilities before and after the new procedures are established.
• Implied Indicator: Number of blanket authorizations issued for LNG and hydroelectric activities.
  
  The success of the new framework can be measured by how many projects utilize the “blanket authorizations.” A high number would indicate that the streamlined process is effective and being adopted by the industry.
• Implied Indicator: Investment in maintenance and upgrades of hydropower facilities.
  
  By making it easier to authorize “maintenance, repairs, and upgrades to hydropower project infrastructure,” FERC’s actions should lead to increased investment in these activities. Tracking the capital expenditure on maintaining and improving these renewable energy assets would be a direct measure of progress towards Targets 7.2 and 9.1.
• Implied Indicator: Metrics of grid reliability.
  
  The ultimate goal stated in the article is to “ensure grid reliability.” Therefore, progress could be measured by tracking standard industry metrics for grid performance, such as the System Average Interruption Duration Index (SAIDI) and the System Average Interruption Frequency Index (SAIFI), to see if the efficient maintenance of infrastructure leads to a more stable energy supply.

4. Summary Table of SDGs, Targets, and Indicators

Source: offshore-energy.biz