FERC Accelerates Natural Gas Infrastructure Expansion Through Key Waivers and Rulemaking
On January 20, 2025, President Donald J. Trump issued Executive Order No. 14156, Declaring a National Energy Emergency, which directed federal agencies to “identify and use all relevant lawful emergency and other authorities available to them to expedite the completion of all authorized and appropriated infrastructure [and] energy . . . projects.” On June 18, 2025, in alignment with this Executive Order and in response to two petitions filed by the Interstate Natural Gas Association of America (“INGAA”), the U.S. Federal Energy Regulatory Commission (“FERC”) advanced a package of regulatory actions aimed at accelerating the development of natural gas infrastructure.
In the first order, FERC issued a two-year temporary waiver that increases the cost threshold for prior notice projects authorized under the Section 7(c) of the Natural Gas Act (“NGA”) blanket certificate program from $41.1 million to $61.65 million for facilities constructed and placed in service by May 31, 2027.[1] Concurrently, FERC issued a Notice of Inquiry (“NOI”) soliciting public input on whether and how to revise the existing cost limitation framework under Part 157, Subpart F of its regulations under the NGA.[2] Comments for the NOI are due August 25, 2025.
FERC also issued a one-year waiver of Section 157.23 of its regulations under the NGA, which currently prohibits the issuance of construction authorizations while rehearing requests remain pending before FERC,[3] and released a Notice of Proposed Rulemaking (“NOPR”) proposing to permanently eliminate Section 157.23 and remove the corresponding cross-reference in Section 153.4.[4] Comments for the NOPR are due July 24, 2025.
A. Blanket Certificate Program
Under FERC’s regulations in Part 157, Subpart F of the NGA, interstate natural gas pipeline operators who possess a blanket certificate under Section 7(c) of the NGA may conduct certain routine infrastructure activities without seeking separate approvals for each project. These activities may proceed following a prior notice filing, provided they remain within established cost thresholds. Designed to simplify regulatory compliance, the blanket certificate framework offers an expedited path for lower-risk, standardized projects, allowing developers to bypass the more intensive case-by-case review process typically required under Section 7 of the NGA. However, under the current regime, the maximum cost permitted for a prior notice project is $41.1 million.
On April 14, 2025, INGAA filed a petition with FERC for a temporary waiver to increase the cost limitations of this program from $41.1 million to $82.2 million. Citing multiple studies which describe the pressing need for new natural gas infrastructure, as well as continued maintenance of existing natural gas infrastructure, FERC found good cause to temporarily increase the cost threshold to $61.65 million. FERC’s order also requires that project sponsors who construct facilities under the temporary waiver are required to keep separate books and accounting of costs and revenues attributable to those facilities in the same manner as required by 18 C.F.R. § 154.309 of FERC’s regulations. Additionally, project sponsors that construct facilities under the temporary waiver are required to file a report with FERC by June 1, 2027, describing those facilities and their costs.
Recognizing that this is not a perfect fix, concurrent with the order, FERC issued an NOI requesting that parties provide alternate cost estimates to price the cost limit more accurately in the future.
B. Repeal of Prohibition on Construction Authorizations Pending Rehearing
18 C.F.R. § 157.23 prohibits FERC from issuing construction authorizations for projects approved under Sections 3 or 7 of the NGA during the rehearing period at FERC, or while rehearing requests remained pending, if those requests raised objections to the project’s construction, operation, or necessity.
On April 14, 2025, INGAA filed a petition for rulemaking, requesting that FERC remove section 157.23 from its regulations. FERC found good cause to temporarily waive section 157.23 for one year to expedite the development of energy infrastructure, given the demand for expanded natural gas transportation capacity and reliability concerns associated with maintaining existing infrastructure. The waiver is effective until June 30, 2026. Relatedly, FERC issued a NOPR proposing to permanently remove section 157.23 from FERC’s regulations.
[1] Interstate Natural Gas Ass’n of America, 191 FERC ¶ 61,206 (2025).
[2] Blanket Certificate Cost Limitations, 191 FERC ¶ 61,207 (2025).
[3] Interstate Natural Gas Ass’n of America, 191 FERC ¶ 61,209 (2025).
[4] Removal of Regulations Limiting Authorizations to Proceed with Construction Activities Pending Rehearing, 191 FERC ¶ 61,208 (2025).
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