The Federal Energy Regulatory Commission (FERC) has undertaken actions to revise the regulatory framework to provide greater flexibility and expedite the development of natural gas infrastructure.

FERC addressed construction authorization timelines and blanket certification cost limitations for interstate natural gas pipeline projects. On June 18, 2025, FERC issued four orders in response to a petition from the Interstate Natural Gas Association of America (INGAA). FERC’s orders temporarily waive Order No. 871, which barred construction on approved projects while rehearing requests are pending and temporarily raise cost limits under which natural gas companies are allowed to undertake pipeline modifications or construction without the need for a full, case specific Natural Gas Act (NGA) section 7 certificate proceeding.

FERC’s actions are intended to increase flexibility and expediency in natural gas development to allow for greater progress in natural gas infrastructure while it considers permanent regulatory changes through the rulemaking process.¹ Stakeholders interested in gas infrastructure development may wish to participate in the rulemaking process regarding the impact of current regulations on project timing, costs and the ability to meet market needs.

FERC issues two temporary waivers on construction timing and blanket certificate cost limitations

Temporary waiver of rule limiting authorizations to proceed with construction activities pending rehearing

Order No. 871 barred construction on approved projects while rehearing requests were pending. FERC issued a one-year waiver of this prohibition (temporarily waiving section 157.23) through June 30, 2026.² This allows pipeline developers to proceed with construction immediately after receiving a certificate, even if rehearing requests are pending. The waiver does not impact the applicability of the presumptive stay policy on a case-by-case basis where a developer has not yet acquired all necessary property interests and where a landowner subject to eminent domain has protested.

FERC emphasized the need to accelerate infrastructure development in light of pressing nationwide near-term demand for expanded natural gas transportation capacity and reliability concerns. The temporary waiver is granted while the proposed rulemaking, described below, is under consideration.

Temporary waiver of regulations to increase blanket certificate cost limitations

FERC is temporarily waiving the cost limitation in section 375.308(v)(1) of its regulations, raising the relevant cost limitations imposed on blanket certification projects that are constructed and in service by May 31, 2027.³ This waiver acts to increase the cost threshold under which additional authorizations for modifications and construction are not required. The waiver raises the prior notice cost cap from US$41.1 million to US$61.65 million for projects placed in service by May 31, 2027. FERC cited urgent reliability needs, inflationary pressures and supply chain disruptions as justification for the temporary waiver.

Project sponsors making prior notice filings pursuant to the temporary waiver should state this in their filings and are required to file a report by June 1, 2027 describing the facilities and their costs. FERC’s action does not alter the requirement that operators must maintain separate accounting for these projects. Nor does it alter that blanket certificate projects are afforded the presumption that they will qualify for rolled-in rate treatment.

FERC seeks stakeholder input to support changes after the temporary waiver period concludes

Removal of regulations limiting authorizations to proceed with construction activities pending rehearing

FERC proposes to remove impediments to pipeline construction by removing section 157.23, ending the prohibition on authorization of construction activity for natural gas facilities under Section 3 and 7 of the Natural Gas Act (NGA) prior to the conclusion of the rehearing period.⁴ FERC’s proposed rulemaking suggests that the existing framework imposes burdens on the developer resulting in greater costs and longer timelines that impede the ultimate development of natural gas infrastructure.

FERC requests comments on whether to eliminate section 157.23 entirely or to revise it to limit its scope or reduce the time period for which construction start must be halted. Interested parties should submit comments and data to support permanent changes that align with their operational and business objectives, particularly regarding construction timing.

Comments are due by July 24, 2025 in Docket No. RM25-9-000.

Blanket certificate cost limitations

FERC seeks stakeholder input on whether to permanently revise the cost thresholds for projects authorized under its blanket certificate program. Currently, pipelines can undertake certain projects without case-specific NGA section 7 approval if they fall below annual inflation-adjusted cost caps—US$14.5 million for automatic authorization and US$41.1 million for prior notice projects. FERC is now evaluating whether these limits remain appropriate given the sharp rise in construction costs and whether alternative inflation indices should be used instead of the GDP deflator.

FERC seeks to adjust the regulation during this time to better serve its original purpose of expediting authorization processes, providing flexibility and reducing regulatory obstacles. FERC requests comments focused on blanket certificate cost limitations, asking eight (8) specific questions to understand how better to address increases in the cost of constructing pipeline facilities.

Comments are due by August 25, 2025 in Docket No. RM25-12-000.

Special thanks to summer associates Akram Abbadi and Evi Patterson for assisting in the preparation of this article.

1 In addition to the orders discussed in this note, on June 30, 2025, FERC issued its final rule removing references to the Council on Environmental Quality’s (CEQ) rescinded regulations after the CEQ removed its NEPA implementing regulations from the Code of Federal Regulations, effective April 11, 2025. FERC replaced references with a citation to the National Environmental Policy Act (NEPA) and issued a new FERC Staff Guidance Manual on Implementation of NEPA to describe the process that FERC staff will use to conduct coordinated, consistent, predictable and timely environmental reviews and reduce unnecessary burdens and delays.

2 The temporary waiver remains subject to requests for rehearing which must be filed by July 18, 2025.

3 The temporary waiver remains subject to requests for rehearing which must be filed by July 18, 2025.

4 The rehearing period being at the conclusion of the period where a timely rehearing could be filed but was not; or, where a valid rehearing request was filed, once the request is no longer pending before FERC, the record of the proceeding is filed with the court of appeals, or 90 days has passed since denial of rehearing by operation of law.