FERC Proposes Easier Rules for Small Gas Pipelines
Published Date: 5/27/2026
Proposed Rule
Summary
The Federal Energy Regulatory Commission wants to make it easier and faster for interstate natural gas pipelines to build certain projects by expanding what they can do without special approval and raising the cost limits. This means pipeline companies can save time and money on smaller projects. If you have thoughts, you’ve got until July 27, 2026, to speak up!
Analyzed Economic Effects
4 provisions identified: 0 benefits, 0 costs, 4 mixed.
Blanket Cost Limits Raised
The Commission proposes higher dollar caps for projects built under the blanket certificate: $86,000,000 for projects using prior notice, $30,000,000 for projects with automatic authorization, and $17,000,000 for storage testing projects. These new limits would let interstate natural gas pipelines build larger projects without a case-specific authorization order.
Annual Index Switch to Handy-Whitman
The Commission proposes switching the annual inflation adjustment for blanket certificate cost limits from the GDP deflator to the Handy-Whitman Index, which focuses on gas utility construction costs. This change would cause future yearly cost-limit adjustments to track a gas-construction-specific index rather than the general GDP price deflator.
Scope and Scale of Projects Expanded
The Commission proposes to expand the types and sizes of interstate natural gas projects that pipelines may construct without obtaining a case‑specific authorization order. The change is intended to speed permitting for routine or modest projects and reduce regulatory burden for pipelines.
Rate Treatment Under Consideration
The Commission sought comment on whether to allow project sponsors to request incremental rates for blanket certificate projects and whether to require separate accounting for such projects. Commenters explicitly proposed processes for incremental-rate requests and for maintaining separate books if incremental rates are sought.
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Key Dates
Department and Agencies
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