FERC speeds gas permitting

The Federal Energy Regulatory Commission voted 5-0 on May 21 to propose the broadest rewrite of its blanket certificate program for interstate natural-gas facilities since 2006. The proposal would let more routine pipeline work move ahead without a project-specific FERC certificate, mainly by raising cost thresholds that commissioners said no longer reflect construction inflation. FERC said the changes are meant to speed work on upgrades, replacements and other smaller projects while keeping existing environmental and customer protections in place. The rulemaking lands as power demand rises and gas infrastructure is drawing renewed attention in regions trying to serve new data centers and other large loads. ### Which projects would move faster under the new rule? FERC’s blanket certificate program already allows interstate gas companies to do a limited set of routine activities without a full case-by-case certificate under Section 7(c) of the Natural Gas Act. The program splits those projects into two buckets: automatic authorizations for the smallest jobs and prior-notice projects that can proceed after a 60-day protest window if no unresolved objections remain. FERC staff said the framework was created in 1982 to handle work that is routine enough not to require the same review as a major new pipeline. (ferc.gov) The May 21 proposal would broaden both the size and type of projects that can use that pathway. FERC said the revisions would “significantly broaden” the projects interstate pipelines can build without case-specific approval, and Foley & Lardner said the proposal would also extend blanket-style treatment toward some LNG-related facilities for the first time. ### Why were the old thresholds becoming a problem? (ferc.gov) The current blanket program has cost caps that were last substantially updated in 2006. Foley & Lardner said the automatic authorization limit is $14.5 million and the prior-notice limit was set at $41.1 million, levels that increasingly pushed routine work out of the streamlined process as labor and materials costs rose. Carlos Anchondo of E&E News reported that commissioners framed the rewrite as a way to keep cost limits aligned with inflation so relatively routine projects can still qualify for streamlined treatment. (ferc.gov) Chair Laura Swett said the commission’s approach was intended to provide “a legally defensible approach in court grounded in the record” while giving industry confidence to invest. ### What has FERC already done before this broader rewrite? (ferc.gov) FERC granted a temporary waiver on June 18, 2025 that raised the prior-notice cost limit to $61.65 million for certain projects placed in service by May 31, 2027. The commission said on May 21 that it is now extending that cutoff by one year, to May 31, 2028, while it works through the permanent rulemaking. The June 2025 notice of inquiry came after a petition from the Interstate Natural Gas Association of America asking FERC to revisit the blanket program. (eenews.net) FERC staff said the commission received 17 comments, including filings from pipeline companies, customer groups, an environmental organization, a state official and individuals. ### Why are lawyers and industry watchers calling this a big change? (ferc.gov) Foley & Lardner said the proposal is “the most significant natural gas permitting reform in two decades” because it reaches the basic mechanics of how routine projects are sorted between blanket treatment and full certificate review. That characterization is consistent with FERC staff’s account that the last major modification to the program came in 2006. (ferc.gov) FERC’s own release cast the measure as a permanent overhaul that could accelerate construction by cutting down on case-specific approvals. E&E News reported that commissioners linked the move to rising energy demand and the need for more pipeline infrastructure. ### Where could the effects show up first? Data-center development is one place industry lawyers say the change could matter. (foley.com) That is an inference from the sources: faster approvals for compressor upgrades, meter replacements, short pipe segments and related routine work could help utilities and pipeline operators connect new gas-fired generation or reinforce service to large-load customers more quickly in constrained regions. (ferc.gov) FERC did not tie the proposal to any single sector in its release. The commission said only that the changes are aimed at infrastructure Americans rely on for affordable and reliable energy, and that related permitting reforms are also under consideration for LNG plants and hydroelectric projects. ### What happens next in the docket? Docket RM25-12-001 is now at the notice-of-proposed-rulemaking stage, not final adoption. (foley.com) FERC will take public comment before deciding whether to issue a final rule, and the commission’s next regular open meeting is scheduled for June 18, 2026, according to its website. (ferc.gov)