On August 31, 2018, FERC and the Pipeline and Hazardous
Materials Safety Administration ("PHMSA"), an agency
under the U.S. Department of Transportation ("DOT"),
signed a Memorandum of Understanding ("MOU") to
coordinate the siting and safety review of FERC-jurisdictional
Liquified Natural Gas ("LNG") facilities.
The MOU generally establishes FERC and PHMSA's roles and
responsibilities regarding the siting, construction, and operation
of LNG facilities. Specifically, the MOU provides that PHMSA, which
is responsible for standards governing the location and design of
LNG facilities, will review LNG project applications to determine
whether a proposed facility complies with the safety standards
provided by PHMSA's regulations. PHMSA will also 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.
