FERC proposes major expansion of natural gas pipeline blanket certificate program
(UI) — The Federal Energy Regulatory Commission (FERC) has proposed changes to its blanket certificate program that would allow interstate natural gas pipelines to undertake larger projects without requiring a case-specific authorization order, part of a broader effort to streamline infrastructure development and reduce regulatory burdens.
The proposed rule, published May 27, would expand the scope and scale of projects eligible for blanket certificate treatment while increasing project cost limits that have remained largely unchanged since the program's last major revision in 2006. FERC said the changes are intended to reflect rising construction costs and growing demand for natural gas infrastructure.
Under the proposal, the cost threshold for prior-notice projects would increase to $86 million from current levels, while the limit for automatically authorized projects would rise to $30 million. The cap for underground storage testing projects would increase to $17 million. FERC said pipeline construction costs have risen substantially faster than existing annual inflation adjustments, citing industry data showing significant increases in pipeline and compression project costs since 2006.
FERC also proposed replacing its current inflation adjustment methodology with the Handy-Whitman Index, a construction-cost benchmark focused on utility infrastructure. According to the commission, the existing GDP deflator has failed to adequately track increases in pipeline construction costs over time.
Additional proposed changes include extending the deadline for placing blanket certificate projects into service, allowing certain projects to charge incremental rates, and revising aspects of the prior-notice protest process. The commission said the revisions are intended to maintain protections for customers and landowners while reducing the number of projects requiring full Section 7 certificate proceedings.
The proposal follows a 2025 FERC order that temporarily increased cost limits for certain blanket certificate projects in response to growing demand for natural gas transportation capacity and concerns about system reliability.
Comments on the proposed rule are due July 27, 2026.
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