FERC proposes broad expansion of blanket permitting authority for natural gas projects

The Federal Energy Regulatory Commission has proposed sweeping reforms to its blanket certificate program for interstate natural gas infrastructure, a move the agency says would significantly accelerate pipeline and related energy projects by allowing more work to proceed without case-specific approvals.

Under a Notice of Proposed Rulemaking (NOPR) issued May 27, the commission proposed broadening the types and sizes of projects that interstate natural gas companies can construct under blanket authorization rules. The proposal would also raise project cost limits, enabling companies to undertake larger investments without seeking individual approval from the commission.

FERC said the changes are intended to streamline permitting, reduce regulatory delays and help expand infrastructure needed to support affordable and reliable energy supplies.

The proposed overhaul follows a June 2025 Notice of Inquiry in which the commission sought feedback on potential updates to the blanket certificate program, which allows qualifying projects to move forward under preauthorized conditions rather than through lengthy case-by-case proceedings.

FERC also extended temporary waivers tied to project cost limits through May 31, 2028, one year beyond the previous expiration date, saying the move would provide regulatory certainty while permanent reforms are finalized.

The commission said the broader permitting review could eventually expand beyond pipelines. FERC noted it is also considering blanket authorization procedures for certain activities at LNG facilities and hydroelectric projects, including maintenance, repairs and upgrades intended to improve operational reliability and efficiency.

Pipeline and midstream companies have long argued that the current permitting structure slows investment and creates uncertainty around relatively routine infrastructure upgrades, particularly as demand for natural gas transportation grows alongside LNG export expansion and rising power-sector demand.

Industry groups including Interstate Natural Gas Association of America have repeatedly urged federal regulators to simplify permitting processes, arguing that existing infrastructure constraints can delay new gas supplies to LNG terminals, power plants and industrial users.

The proposal comes as U.S. natural gas infrastructure developers face increasing pressure to add pipeline capacity tied to expanding LNG exports, data center-related power demand and broader electrification trends that continue to support gas-fired generation growth.

However, environmental organizations and pipeline opponents quickly criticized the proposal, warning that broader blanket authority could reduce environmental scrutiny and limit opportunities for public participation.

Groups including Sierra Club and Food & Water Watch have previously opposed efforts to expand streamlined permitting for fossil fuel infrastructure, arguing that blanket approvals can allow projects with cumulative environmental impacts to proceed without sufficient review under the National Environmental Policy Act.

Critics also contend that expanding blanket authorizations could make it more difficult for landowners, local communities and environmental groups to challenge projects affecting property rights, emissions or sensitive ecosystems.

Environmental advocates have increasingly argued that methane emissions associated with pipeline systems and LNG infrastructure should receive greater regulatory scrutiny as federal and state governments pursue emissions-reduction goals.

FERC did not indicate when the commission expects to finalize the rulemaking, but the proposal is expected to draw significant comments from pipeline operators, LNG developers, environmental groups and state regulators during the public review process.