By Kennedy Maize
The Federal Energy Regulatory Commission yesterday (May 21) began a process to update its fast-track “blanket permitting process” under the Natural Gas that allows routine natural gas pipeline projects to proceed without full regulatory review. The commission issued a notice of proposed rulemaking (NOPR) outlining how it plans to streamline and modernize the commission procedure in a way that, as Commissioner David Rosner put it, “balances both environmental and ratepayer concerns.”
A FERC news release said the proposal “will empower companies to build much needed critical infrastructure without the delay of case-by-case approvals. These changes should dramatically accelerate construction by cutting through red tape and driving progress for the nation’s energy future.”
Among the provisions in the NOPR would essentially double the cost limits that allow companies to use the blanket process, from $14.5 million to $30 million for projects that use an “automatic authorization” provision, from $41.1 million to $86 million for projects requiring prior FERC notification, and the “annual cost limit for natural gas facilities, including storage wells, used for the testing or development of underground storage reservoirs” from $7.9 million to $17 million.
The proposal also would remove the cost limits for expansions of existing gas compressor stations for work eligible for the “prior notice” procedure.
According to a FERC staff presentation, “The NOPR also proposes to allow natural gas companies to charge incremental rates for prior notice projects and extends the in-service deadline from one year to two.” That is designed to prevent gas ratepayers not affected by the project from seeing the cost reflected in their bills.
FERC created the blanket certificate program in 1982. It’s most recent update was in 2006. Last year the Interstate Natural Gas Association of America (INGAA), the gas pipeline industry’s Washington lobbying group, asked FERC to take a look at updating the program. In June 2025, the commission issued a “notice of inquiry” seeking stakeholder comments.
In approving the NOPR this week, the commission also OK’d a companion order that INGAA proposed. It extends a deadline for projects with existing temporary waivers of the cost limits under the existing blanket authorizations to May 31, 2008, a year later than the previous May 31, 2007 deadline. FERC said, “This extension provides regulatory certainty to the industry as the Commission finalizes its permanent policy.”
At a press briefing following the meeting, Swett said updating the gas pipeline fast track proposal is “clearing the way for expansion” of the energy infrastructure “critical to the nation’s needs.” She added that FERC “is not cutting any corners here. Everything we are doing is grounded in commission experience and staff experience.” Swett added that the pipeline blanket program update is part of a “suite” of FERC initiatives to streamline routine repair and upgrade programs for hydropower projects the commission regulates and liquified natural gas projects.
In other commission news:
- FERC Thursday rejected a complaint by two small solar projects aimed at the PJM Interconnection, which refused to let them withdraw their application and recoup their deposits. PJM argued that allowing the withdrawal late in the interconnection’s process would lead to an incentive for late-stage withdrawals and shift costs to the remaining projects. FERC agreed with PJM.
- Approved a final rule, proposed last October, adopting revised “mandatory enforceable requirements” implementing rules for interstate gas pipelines by the North American Energy Standards Board “designed to streamline the process for accessing publicly available gas-electric coordination data during extreme cold weather or emergency events.” This item won praise from Commissioner Judy Chang, who described it as “a particular interest.”
- Swett and commissioners Rosner, Chang, and Lindsay See congratulated sitting commissioner David LaCerte for winning Senate confirmation for a full five-year term on the commission on Monday evening. His nomination was among a list of Senate committee approved nominations waiting for an en-masse floor vote. It is officially his second FERC term, as President Trump nominated him last June to fill the remaining months of a five-year term of departing Republican Chairman Mark Christie. He was confirmed for that FERC seat last October.