FERC Axes Energy Project-Delaying Rule

The Federal Energy Regulatory Commission this week published a final rule allowing construction of pipelines and natural gas facilities during certain appeals requests (POLITICO Pro, subscription).
What’s going on: “On Tuesday, FERC published a final rule that removes a section of its regulations added by Order 871, which was enacted in 2020 and amended in 2021. … The order has since been criticized by industry and FERC leaders as a stall tactic by project opponents.”
- President Trump’s National Energy Dominance Council lauded the move in a social media post.
What it means: Pipelines can now start construction immediately upon receiving FERC approval without waiting for a rehearing, Brittany Kelm, a senior policy adviser for the NEDC, wrote on LinkedIn. The change, she said, will also result in:
- Shorter project durations: “[P]otentially cutting 6-12 months off development schedules”;
- Greater certainty for business: “[C]ompanies won’t have to fear losing seasonal construction windows while waiting for legal resolution”; and
- More completed projects: There will be “fewer cancellations due to timing-related cost overruns or permit expirations.”
Our view: “[FERC’s] new final rule on pipeline construction will help speed up permitting for energy infrastructure projects needed to power the future of manufacturing in America,” NAM Managing Vice President of Policy Charles Crain posted on X Thursday.
- The NAM “welcomes this thoughtful approach to modernizing federal regulation.”