Today, ALFA is releasing a report on an under-the-radar program (but with big potential) that is intended to fast-track construction, modification, acquisition, operation, or abandonment of natural gas pipelines.
That program is the Federal Energy Regulatory Commission’s (FERC) Blanket Certificate program. Born in the 80s, despite the good intention and promise of the program, it has not been updated to modern needs.
Natural gas is foundational to America’s energy portfolio. And to do the things we want to do—develop AI, build factories, and employ more Americans with great jobs—we need to deliver more of it.
But as Bechtel’s Brendan Bechtel stressed at Tuesday’s , our permitting process is broken. When energy infrastructure projects that could be seamlessly approved (2-4 months) are instead hauled over to the slow lane (1-2 years of review), we are unnecessarily constraining growth, jobs, and progress.
The good news is that through the FERC’s own rule making, it can retrofit a good program that is out of date with one that will jumpstart America building again.
The two reforms we are proposing are.
- Increase the cost caps of projects so that more qualify for expedited permitting. In 2006, the average per-mile cost of pipeline construction has risen by over 268 percent, but FERC’s prior notice cost threshold has only risen by 50 percent
- Expand the scope of project eligibility. Most new infrastructure doesn’t require carving new paths across the country. Instead, it involves upgrading or expanding within these existing corridors. Projects built within these corridors, using the same footprint or modest in scale, should not be treated the same as brand-new builds in undeveloped areas.
Too often we get distracted by “the future”. In doing so, it creates a permission structure to neglect what’s needed right now. But the definition of the future has changed. We are no longer living in an era of 3-6 year projections. Our future is today and to capture it we have to act now with the plentiful tools and resources at our disposal. FERC’s Blanket Certificate program can be a catalyst to meet this moment.
Read our full report here.
