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Independent regulatory commissions

FERC Takes Four Actions to Ease Regulatory Burdens for Pipeline and LNG Facilities

Strategic Insights

— 2 min read

The Federal Energy Regulatory Commission (FERC) has taken four actions to ease regulatory burdens for constructing interstate pipeline and liquefied natural gas (LNG) facilities authorized under the Natural Gas Act (NGA). These actions include a one-year temporary waiver of Order No. 871, a Notice of Proposed Rulemaking proposing to permanently rescind Order No. 871, a two-year temporary waiver of FERC regulations setting the maximum cost threshold for activities conducted under a pipeline's NGA blanket construction certificate, and a Notice of Inquiry to consider permanent revisions to the cost limit for the blanket certificate program.

Key Takeaways:

  • FERC has approved a one-year temporary waiver of Order No. 871, effective immediately, to delay construction of permitted natural gas facilities until the period for seeking rehearing of an underlying order authorizing the facilities' construction has elapsed.
  • The regulations waived through June 30, 2026, will allow developers to construct projects without factoring in additional construction delays of 150 days.
  • FERC has issued a Notice of Proposed Rulemaking proposing to permanently rescind Order No. 871, which would eliminate the 150-day delay for construction projects after an order authorizing their construction has been issued.
  • FERC has approved a two-year temporary waiver of FERC regulations setting the maximum cost threshold for activities conducted under a pipeline's NGA blanket construction certificate, raising the threshold from $41,100,000 to $61,650,000 for projects placed in service by May 31, 2027.
  • The temporary waiver will allow pipelines to construct projects without meeting the cost threshold, but they will still need to meet other regulatory requirements.
  • FERC has issued a Notice of Inquiry to consider permanent revisions to the $41,100,000 cost limit for the blanket certificate program for projects constructed and placed in service by May 31, 2027.
  • The NOI seeks public comment on eight questions, including the types of projects that should be included in the "prior notice" category and the impacts on ratepayers.
  • The notice and comment period for the NOI will close on July 24, 2025, for the proposed rulemaking and August 25, 2025, for the NOI.

Statistics:

  • The $61,650,000 threshold was raised from $41,100,000, a 50% increase.
  • The temporary waiver is effective for projects placed in service by May 31, 2027.
  • The Notice of Proposed Rulemaking has a comment period until July 24, 2025.
  • The Notice of Inquiry has a comment period until August 25, 2025.

Sources:

  • Federal Energy Regulatory Commission (FERC)
  • Interstate Natural Gas Association of America (INGAA)
  • North American Electric Reliability Corporation (NERC)
  • U.S. Energy Information Agency (EIA)

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