FERC Tightens Rules for Natural Gas Infrastructure Permitting
FERC proposed new rules raising cost limits and tightening compliance for gas infrastructure projects.
Why it matters: Legal and compliance teams in the energy sector face new requirements and altered approval pathways for developing and upgrading natural gas infrastructure. Timely adaptation of counsel strategies is now critical as permitting becomes both more stringent and, for some projects, potentially faster.
- FERC's May 21, 2026 NOPR significantly reforms the blanket certificate program for natural gas.
- Automatic authorization cost limit jumps from $14.5M to $30M; prior notice cost cap rises to $86M.
- Project eligibility expands to cover more compressor station and LNG facility activities.
- Temporary regulatory waivers on cost limits now extend through May 31, 2028.
The Federal Energy Regulatory Commission (FERC) on May 21, 2026, proposed sweeping reforms to its natural gas permitting framework. The Notice of Proposed Rulemaking (NOPR) aims to streamline infrastructure upgrades while introducing more rigorous compliance standards for developers and pipeline operators.
- The automatic authorization cost limit would increase from $14.5 million to $30 million, allowing more projects to qualify for streamlined approval without full Commission review.
- Pipelines and developers can also utilize the prior notice process for projects up to $86 million, up from the previous $41.1 million cap. This expands the universe of projects eligible for expedited processing.
- The proposal widens the types and sizes of covered activities — including certain compressor station upgrades and meter station work — under the blanket certificate program, responding to calls for modernization from industry stakeholders.
- Notably, the NOPR proposes to extend blanket authorization to specific activities at liquefied natural gas (LNG) facilities. Traditionally, these projects required more intensive scrutiny and a full certificate review.
- Project sponsors operating under temporary regulatory waivers benefit from an extended deadline—May 31, 2028—as FERC works to finalize its permanent policy on cost limits.
FERC Chairman Mark Christie called these changes essential "to help America avoid a grid reliability crisis." Chair Laura Swett emphasized that the reforms draw on "thousands of hours of experience" and aim to balance legal defensibility with regulatory certainty for the industry.
For legal counsel, these developments mean new compliance obligations, varieties of risk assessment, and updated review procedures for almost any entity planning or operating natural gas infrastructure in the U.S.
By the numbers:
- $30M — New automatic authorization cost limit, up from $14.5M
- $86M — New prior notice cost limit, nearly double the previous $41.1M cap
- May 31, 2028 — Extended deadline for projects operating under temporary waivers
Yes, but: Project eligibility details, especially regarding LNG facilities, are still partly undefined and subject to future clarification.
What's next: Stakeholders will monitor the public comment period and await FERC's finalized rules, expected later this year.