LNG in World Markets: Senate Committee to Consider Biden FERC Nominees
The five-person Federal Energy Regulatory Commission (FERC) could avoid losing quorum if three Biden administration nominees advance from a March 21 hearing and are later confirmed by the US Senate.
The FERC is an independent agency that, among other duties, issues permits for and oversees the construction and operation of interstate natural gas pipelines and LNG export projects. By statute, commissioners can serve up to five-year terms with no more than three commissioners from the same political party. Political gridlock has whittled the FERC down to three sitting commissioners, which is enough for a quorum. But with the term for Commissioner Allison Clements, an environmentalist Democrat, expiring on June 30, the agency is facing a scenario where quorum could be lost. As a result, the Biden administration is seeking to appoint three nominees of mixed political backgrounds to keep the commission functioning.
If the agency does not have a quorum, it could hold up decisions on permits for new LNG export projects or for extensions to projects that already have FERC in-service dates.
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