Donna Gregory
A newly introduced House bill would raise the bar for approving U.S. liquefied natural gas (LNG) exports by redefining how federal regulators determine whether proposed exports serve the public interest. While the legislation remains in early committee stages, it reflects a growing policy push to expand the scope of scrutiny applied to LNG projects beyond trade and energy security considerations.
H.R. 381, introduced on January 14, 2025 by Sean Casten and referred to the House Committee on Energy and Commerce, would amend the Natural Gas Act to impose more prescriptive criteria on LNG export approvals. Under the bill, the Department of Energy (DOE) would be required to deny an export authorization unless it determines that the project is unlikely to significantly worsen climate change, raise domestic energy prices or price volatility, or impose disproportionate environmental or health burdens on low-income, rural, or minority communities.
Currently, DOE evaluates LNG exports under a broad public-interest standard that allows the agency to weigh economic, energy, and international factors. H.R. 381 would narrow that discretion by transforming the public-interest test into a set of limiting conditions that must be affirmatively satisfied. In practice, this would require more extensive analysis before approvals could be granted and could increase the evidentiary burden on project developers.
The bill places particular emphasis on climate impacts. It directs DOE to conduct a full lifecycle greenhouse gas assessment for proposed exports, covering emissions from extraction through end use, and to give weight to the near-term warming effects of methane. The legislation also calls for explicit consideration of whether LNG exports could slow the global transition to lower-emissions energy or crowd out clean energy deployment.
Economic impacts are another central focus. The bill would require analysis of how exports affect different classes of consumers, including residential customers and energy-intensive manufacturers, as well as impacts on state and local governments. Environmental justice considerations are also elevated, with regulators directed to assess cumulative impacts on communities that have historically borne disproportionate environmental burdens.
Although H.R. 381 has advanced only modestly since its introduction and faces significant political hurdles, its relevance extends beyond its immediate prospects. The bill signals a continued shift toward integrating climate, cost, and equity considerations into energy permitting decisions. For LNG developers, investors, and compliance teams, it underscores a 2026 reality: export approvals are increasingly shaped by expanded regulatory expectations that can affect timelines, litigation risk, and project economics—even in the absence of new law.