BRIEF-FERC Proposes Increased Cost Limits and Other Changes to Natural Gas Blanket Certificate Program
May 29 (Reuters) - FEDERAL ENERGY REGULATORY COMMISSION (FERC):
ON MAY 21, 2026, FERC PROPOSED CHANGES TO ITS NATURAL GAS BLANKET CERTIFICATE REGULATIONS TO EXPAND THE SCOPE AND SCALE OF PROJECTS THAT INTERSTATE NATURAL GAS PIPELINES MAY CONSTRUCT WITHOUT A CASE-SPECIFIC AUTHORIZATION ORDER, AND TO INCREASE THE COST LIMITS FOR SUCH PROJECTS.
ON MAY 21, 2026, FERC ISSUED A NOTICE OF PROPOSED RULEMAKING (NOPR) PROPOSING TO REVISE TO THE BLANKET CERTIFICATE PROGRAM, INCLUDING CHANGES TO THE BLANKET CERTIFICATE COST LIMITS; THE INDEX USED FOR ANNUAL COST ADJUSTMENTS; THE RATE TREATMENT AND PROTEST PROCEDURES FOR PRIOR‑NOTICE PROJECTS; AND SEVERAL MODIFICATIONS TO PROJECT ELIGIBILITY, ENVIRONMENTAL REVIEW, AND LANDOWNER‑NOTIFICATION REQUIREMENTS
EXTENDED THE TEMPORARY WAIVER OF ITS PRIOR‑NOTICE COST LIMIT GRANTED IN 2025 TO ALLOW PROJECTS CONSTRUCTED AND PLACED IN SERVICE BY MAY 31, 2028 TO CONTINUE TO RELY ON THE INCREASED $61.65 MILLION PRIOR‑NOTICE COST CAP
THIS EXTENSION IS WITHIN ITS AUTHORITY TO WAIVE ITS REGULATIONS FOR GOOD CAUSE AND CONSISTENT WITH THE NGA, AND EXPLAINED THAT EXTENDING THE WAIVER'S IN‑SERVICE DEADLINE IS INTENDED TO ALLOW ADDITIONAL PROJECTS TO MAKE USE OF THE HIGHER COST LIMIT WHILE THE NOPR IS PENDING AND TO PROVIDE REGULATORY CERTAINTY DURING THE RULEMAKING PROCESS
NOPR PROPOSES TO INCREASE THE COST LIMITS TO $86 MILLION FOR PRIOR-NOTICE PROJECTS, $30 MILLION FOR AUTOMATIC AUTHORIZATION PROJECTS, AND $17 MILLION FOR STORAGE TESTING PROJECTS
PROPOSES TO ALLOW PIPELINES TO CHARGE INCREMENTAL RATES FOR PROJECTS CONSTRUCTED UNDER THE PRIOR NOTICE PROCEDURES, WITH SUPPORTING RATE CALCULATIONS AND EXHIBITS SUBJECT TO PROTEST, WHILE CONTINUING TO GRANT AUTOMATIC PREDETERMINATIONS OF ROLLED-IN RATE TREATMENT FOR BLANKET PROJECTS THAT USE EXISTING SYSTEM RATES
PROPOSES TO EXTEND, FROM ONE YEAR TO TWO YEARS, THE PERIOD WITHIN WHICH BLANKET-AUTHORIZED PROJECTS MUST BE COMPLETED AND PLACED IN SERVICE, WITH PROCEDURES FOR REQUESTING EXTENSIONS AND FOR NOTIFYING THE FERC WHEN DELAYS ARE DUE TO A SHIPPER'S INABILITY TO ACCEPT SERVICE
FERC PROPOSES TO REMOVE COST LIMITS FOR NEW RECEIPT POINTS AND TO AUTHORIZE THEM UNDER AUTOMATIC AUTHORIZATION, STATING THAT IT VIEWS RECEIPT POINTS AS ANALOGOUS TO DELIVERY POINTS, WHICH ARE ALREADY AUTHORIZED AUTOMATICALLY