Interstate Natural Gas Association of America Seeks Temporary Waiver for Blanket Certificate Cost Limits

Strategic Insights -

The Interstate Natural Gas Association of America (INGAA) has submitted a document to the Federal Energy Regulatory Commission (FERC) seeking a temporary waiver to increase the blanket certificate cost limits for prior notice authorization projects. The association aims to facilitate the development of natural gas infrastructure, citing the need to address the nation's energy emergency. INGAA's proposal has garnered widespread support from the industry and bipartisan backing, with Secretary of the Interior Doug Burgum urging the FERC to expedite the process.

Key Takeaways:

  • INGAA has submitted a document to the FERC requesting a temporary waiver to increase the blanket certificate cost limit for prior notice authorization projects from $41,100,000 to $82,200,000 for a period of two years.
  • The association is withdrawing its request to temporarily increase the cost limits for automatic authorization and storage field projects, instead focusing on prior notice projects.
  • The proposal aims to strike a balance between facilitating infrastructure development and maintaining regulatory oversight.
  • To date, no party has opposed INGAA's request, with the Honorable Doug Burgum, Secretary of the U.S. Department of the Interior, expressing strong support.
  • The need for natural gas infrastructure development has drawn broad bipartisan support across the political spectrum, as well as strong backing from the natural gas and power sectors.
  • The FERC has not reevaluated the underlying cost thresholds for the blanket certificate since 2006, with INGAA urging the Commission to initiate a Notice of Inquiry to assess whether a permanent revision to the cost limits is warranted.
  • Recent developments, including inflationary pressures and supply chain disruptions, have increased project costs, making the requested relief all the more urgent.

Statistics:

  • The proposed increased blanket certificate cost limit for prior notice authorization projects is $41,100,000 (current limit) to $82,200,000 (proposed limit) for a period of two years.
  • The FERC has not reevaluated the underlying cost thresholds for the blanket certificate since 2006.
  • The rate of inflation since 2006 is approximately 50%.
  • The proposed relief aims to address the nation's energy emergency, with INGAA citing a lack of sufficient infrastructure connecting end users to abundant natural gas supplies.

Sources:

  • Federal Energy Regulatory Commission (FERC) - Docket No. CP25-208-000
  • US Department of the Interior - Honorable Doug Burgum, Secretary
  • INGAA (Interstate Natural Gas Association of America) - "Modification of Emergency Petition to Temporarily Waive Blanket Certificate Cost Limits" (dated April 14, 2025)
  • INGAA (Interstate Natural Gas Association of America) - "Revisions to the Blanket Certificate Regulations and Clarification Regarding Rates" (FERC Order No. 686, 2006)