Proposed Rule2025-11582
Removal of Regulations Limiting Authorizations To Proceed With Construction Activities Pending Rehearing
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Published
June 24, 2025
Issuing agencies
Energy DepartmentFederal Energy Regulatory Commission
Abstract
The Federal Energy Regulatory Commission (Commission) proposes to remove from its regulations a rule that precludes the issuance of authorizations to proceed with construction activities with respect to natural gas facilities approved pursuant to section 3 or section 7 of the Natural Gas Act for a limited time while certain requests for rehearing are pending before the Commission.
Full Text
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<title>Federal Register, Volume 90 Issue 119 (Tuesday, June 24, 2025)</title>
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[Federal Register Volume 90, Number 119 (Tuesday, June 24, 2025)]
[Proposed Rules]
[Pages 26771-26775]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-11582]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 90, No. 119 / Tuesday, June 24, 2025 /
Proposed Rules
[[Page 26771]]
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Parts 153 and 157
[Docket No. RM25-9-000]
Removal of Regulations Limiting Authorizations To Proceed With
Construction Activities Pending Rehearing
AGENCY: Federal Energy Regulatory Commission, DOE.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Federal Energy Regulatory Commission (Commission) proposes
to remove from its regulations a rule that precludes the issuance of
authorizations to proceed with construction activities with respect to
natural gas facilities approved pursuant to section 3 or section 7 of
the Natural Gas Act for a limited time while certain requests for
rehearing are pending before the Commission.
DATES: Comments are due July 24, 2025.
ADDRESSES: Comments, identified by docket number, may be filed in the
following ways. Electronic filing through <a href="http://www.ferc.gov">http://www.ferc.gov</a>, is
preferred.
<bullet> Electronic Filing: Documents must be filed in acceptable
native applications and print-to-PDF, but not in scanned or picture
format.
<bullet> For those unable to file electronically, comments may be
filed by USPS mail or by hand (including courier) delivery.
[cir] Mail via U.S. Postal Service Only: Addressed to: Federal
Energy Regulatory Commission, Secretary of the Commission, 888 First
Street NE, Washington, DC 20426.
[cir] Hand (including courier) delivery: Deliver to: Federal Energy
Regulatory Commission, 12225 Wilkins Avenue, Rockville, MD 20852.
The Comment Procedures section of this document contains more
detailed filing procedures.
FOR FURTHER INFORMATION CONTACT: Indigo Brown, Office of the General
Counsel, Federal Energy Regulatory Commission, 888 First Street NE,
Washington, DC 20426, (202) 502-8505, <a href="/cdn-cgi/l/email-protection#771e19131e1018591505180019371112051459101801"><span class="__cf_email__" data-cfemail="50393e3439373f7e32223f273e10363522337e373f26">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: 1. Section 157.23 of the Federal Energy
Regulatory Commission's (Commission) regulations provides that with
respect to orders issued pursuant to 15 U.S.C. 717b or 15 U.S.C.
717f(c) authorizing the construction of new natural gas transportation,
export, or import facilities, no authorization to proceed with
construction activities will be issued during the periods specified
therein. The Commission proposes to remove Sec. 157.23 and modify
Sec. 153.4 to remove the reference to Sec. 157.23, in response to the
imperative to remove impediments to the construction of needed energy
infrastructure identified in the Interstate Natural Gas Association of
America's (INGAA) petition for rulemaking and elsewhere.\1\ This action
would advance the Commission's principal statutory mission under the
Natural Gas Act ``to encourage the orderly development of plentiful
supplies of . . . natural gas at reasonable prices.'' \2\
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\1\ See, e.g., FERC, Federal-State Current Issues Collaborative
(Apr. 28 2025), <a href="https://www.ferc.gov/federal-state-current-issues-collaborative">https://www.ferc.gov/federal-state-current-issues-collaborative</a> (noting that constrained natural gas pipeline capacity
and storage availability is increasing impacts on domestic
manufacturing where manufacturing is facing a growing crisis due to
inadequate natural gas pipeline capacity); FERC, January 2025 Arctic
Events: A System Performance Review, 18-19 (2025), <a href="https://www.ferc.gov/media/report-january-2025-arctic-events-system-performance-review-ferc-nerc-and-its-regional">https://www.ferc.gov/media/report-january-2025-arctic-events-system-performance-review-ferc-nerc-and-its-regional</a> (accessed May 16,
2025) (supporting that new natural gas infrastructure is needed in
the immediate term to help address pressing nationwide reliability
and resource adequacy concerns); Secretary Burgum April 30, 2025
Letter Endorsing Petition for Rulemaking to Rescind Order No. 871;
Exec. Order No. 14,154, 90 FR 8353 (Jan. 20, 2025); Exec. Order No.
14,156, 90 FR 8433 (Jan. 20, 2025); Exec. Order No. 14,213, 90 FR
9945 (Feb. 14, 2025).
\2\ See Citizens Action Coal. of Ind., Inc. v. FERC, 125 F.4th
229, 244 (D.C. Cir. 2025) (quoting NAACP v. FPC, 425 U.S. 662, 669-
70 (1976)).
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I. Background
A. Order No. 871
2. On June 9, 2020, the Commission in Order No. 871 \3\ issued a
final rule amending its regulations to add 18 CFR 157.23, precluding
the issuance of authorizations to proceed with construction of projects
authorized under sections 3 and 7 of the Natural Gas Act (NGA) during
the period for filing requests for rehearing of initial orders, or
while rehearing is pending.\4\ Order No. 871 also revised Sec. 153.4
of the Commission's regulations, which sets forth general requirements
for NGA section 3 applications, to incorporate a cross-reference to
Sec. 157.23. The Commission issued Order No. 871 to address concerns
raised in the then-pending appeal Allegheny Defense Project v. FERC \5\
before the U.S. Court of Appeals for the District of Columbia Circuit
(D.C. Circuit).
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\3\ Limiting Authorizations to Proceed with Construction
Activities Pending Rehearing, Order No. 871, 85 FR 40113 (July 6,
2020), 171 FERC ] 61,201 (2020), order on reh'g, Order No. 871-A, 86
FR 7643 (Feb. 1, 2021), 174 FERC ] 61,050, order on reh'g, Order No.
871-B, 86 FR 26150 (May 13, 2021), 175 FERC ] 61,098, order on
reh'g, Order No. 871-C, 176 FERC ] 61,062 (2021).
\4\ Under NGA section 3(e), the Commission is authorized to
grant or deny applications to site, construct, expand, or operate
liquefied natural gas (LNG) terminals. Under NGA section 7(c), the
Commission is authorized to issue certificates of public convenience
and necessity for the construction of interstate natural gas
transportation facilities.
\5\ 932 F.3d 940 (D.C. Cir. 2019), on reh'g en banc, 964 F.3d 1
(D.C. Cir. 2020) (Allegheny).
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3. Following the issuance of Allegheny, in response to requests for
clarification and rehearing of Order No. 871, the Commission in Order
No. 871-A provided interested parties an opportunity to file initial
and reply briefs on the arguments raised on rehearing and specific
questions posed by the Commission.\6\
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\6\ Order No. 871-A, 174 FERC ] 61,050.
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4. After review of the briefs filed, the Commission in Order No.
871-B revised Sec. 157.23 to provide that the rule prohibiting the
issuance of construction authorizations pending rehearing would apply
only when a request for rehearing raised issues reflecting opposition
to project construction, operation, or need.\7\ Order No. 871-B also
revised Sec. 157.23 to provide that the rule's restriction on issuing
construction authorizations would expire if no qualifying request for
rehearing was filed or, if such a request was filed, when (1) the
request was no longer pending (i.e., it had been withdrawn or the
Commission had acted on it), (2) the record of the proceeding was filed
with the court of appeals, or (3) 90 days had passed from the date that
the request
[[Page 26772]]
might be deemed denied by operation of law under NGA section 19(a).\8\
Finally, Order No. 871-B also adopted a policy of presumptively
staying, on a case-by-case basis where a pipeline developer has not
already acquired all necessary property interests and where a landowner
who would be subject to eminent domain proceedings protested,\9\ an NGA
section 7(c) certificate order during the 30-day period for seeking
rehearing, and pending Commission resolution of any timely requests for
rehearing filed by a landowner, until the earlier of the date on which
the Commission (1) issues a substantive order on rehearing or otherwise
indicates that the Commission will not take further action, or (2) 90
days following the date that a request for rehearing may be deemed to
have been denied under NGA section 19(a).\10\
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\7\ Order No. 871-B, 175 FERC ] 61,098 at PP 14, 30.
\8\ Id. PP 26, 30.
\9\ Order No. 871-C, 176 FERC ] 61,062 at P 41 (clarifying that
the stay policy applies to landowners subject to eminent domain).
\10\ Order No. 871-B, 175 FERC ] 61,098 at PP 43-51 (noting at P
51 that the new policy is only presumptive and that the question of
whether to impose a stay will be decided on the circumstances
presented in each particular certificate proceeding.).
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5. In Order No. 871-C, the Commission addressed requests for
rehearing and clarification of Order No. 871-B.\11\ The Commission
modified the discussion but did not change the outcome of Order No.
871-B.\12\
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\11\ Order No. 871-C, 176 FERC ] 61,062.
\12\ INGAA and others filed and later withdrew petitions for
review of the Order No. 871 rulemaking.
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6. On January 20, 2025, the President issued Executive Order 14154,
to eliminate delays in and streamline the permitting process for energy
infrastructure projects, and noting that it is ``in the national
interest to unleash America's affordable and reliable energy and
natural resources.'' \13\ On the same date, the President issued
Executive Order 14156, which declares a national energy emergency and
prioritizes the expansion of energy infrastructure as a matter of
critical national and economic security.\14\
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\13\ Exec. Order No. 14,154, 90 FR 8353 (Jan. 20, 2025).
\14\ Exec. Order No. 14,156, 90 FR 8433 (Jan. 20, 2025).
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B. INGAA Petition
7. On April 14, 2025, INGAA filed a petition for rulemaking,
requesting that the Commission adopt a rule rescinding Order No. 871,
removing Sec. 157.23 from the regulations, and revising Sec. 153.4 to
remove the reference to Sec. 157.23.\15\ In its petition, INGAA argues
that the stakeholder protections afforded by the D.C. Circuit's
decision in Allegheny rendered the regulations promulgated under Order
No. 871 unnecessary.\16\ Specifically, INGAA maintains that Allegheny's
holding \17\ protects stakeholders from the possibility that project
construction may proceed before the completion of the Commission's
review because that decision allows parties to ``seek and receive a
judicial stay of a certificate [or authorization] order as soon as 30
days after a request for rehearing'' has been filed.\18\ INGAA contends
that the current Order No. 871 framework assumes that the Commission
erred in authorizing a project.\19\
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\15\ INGAA Petition at 18.
\16\ Id. at 7.
\17\ Allegheny, 964 F.3d 1, 13-17 (holding that parties that
have filed a rehearing request may file a petition for judicial
review of the underlying order immediately after rehearing is deemed
denied).
\18\ INGAA Petition at 7-8.
\19\ Id. at 8.
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8. Additionally, INGAA notes that when creating project schedules,
project developers must work with contractors and vendors to set the
timeframes to accommodate anticipated construction, material
procurement, and environmental compliance requirements, as well as
seasonal constraints.\20\ It argues that Order No. 871's preemptive
prohibition of the issuance of construction authorizations forces
developers to account in their schedules for the maximum amount of time
(150 days) that could be imposed as a result of a potential rehearing
request, even where no eligible rehearing request is filed.\21\ INGAA
avers that Order No. 871 subjects project developers to unnecessary
costs and construction delays regardless of whether developers account
in advance for the potential delays which would be encountered should
an eligible rehearing request be filed or fail to consider such
potential delays and are forced to make last-minute schedule
changes.\22\
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\20\ Id.
\21\ Id. at 8-9.
\22\ Id. at 9-11.
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9. Further, INGAA claims that Order No. 871 increased the number of
rehearing requests, that non-landowner parties have filed most of the
rehearing requests since the promulgation of Order No. 871, and that
the regulation has become a tool to delay authorized projects.\23\
INGAA contends that the interests of project developers and landowners
are unbalanced and that the burdens imposed on developers are not
justified.\24\ INGAA maintains that if the Commission rescinds Order
No. 871 landowners will not be materially impacted because they would
still have statutory and other regulatory protections, such as the
ability to file with the Commission rehearing requests of certificate
and authorization orders and motions to stay the certificate or
authorization order, as well as to seek an emergency judicial stay of
the certificate holder's exercise of eminent domain if needed.\25\
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\23\ Id. at 12-14. We note that INGAA has not provided
additional support for these specific claims. Cf. Seven Cnty.
Infrastructure Coal. v. Eagle Cnty., Colo., No. 23-975, 2025 WL
1520964, slip op. at 12 (D.C. Cir. May 29, 2025) (noting that
``project opponents have invoked [the National Environmental Policy
Act] and sought to enlist courts in blocking or delaying even those
projects that otherwise comply with all relevant substantive
environmental laws.'')
\24\ Id. at 14.
\25\ Id. at 14-15.
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10. Finally, INGAA states that rescinding Order No. 871 would be
consistent with the Administration's priorities to develop reliable
energy infrastructure.\26\ INGAA argues that the Commission has
previously proposed rules that are justified by federal policies
established in prior Executive Orders.\27\
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\26\ Id. at 16-17.
\27\ Id. (citing Applications for Permits to Site Interstate
Elec. Transmission Facilities, Notice of Proposed Rulemaking, 181
FERC ] 61,205, at P 30 (2022); Applications for Permits to Site
Interstate Elec. Transmission Facilities, Order No. 1977, 89 FR
46682 (May 29, 2024), 187 FERC ] 61,069, at P 111 (2024)).
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11. In response to INGAA's petition, several entities filed motions
to intervene, without comment.\28\ On April 30, 2025, U.S. Department
of the Interior Secretary Burgum, acting in his capacity as Chairman of
the National Energy Dominance Council, filed a letter supporting
INGAA's petition. Secretary Burgum states that Order No. 871 is
inconsistent with the Administration's policies declaring a national
energy emergency and prioritizing the efficient development of energy
infrastructure for the protection of national and economic
security.\29\ On June 11, 2025, Energy
[[Page 26773]]
Transfer LP and its affiliates filed comments in support of INGAA's
petition.
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\28\ Motions to intervene were filed by Public Citizen, Inc.;
Consolidated Edison Company of New York, Inc. and Orange and
Rockland Utilities, Inc.; Iroquois Gas Transmission System, L.P.;
National Grid Gas Delivery Companies; Ameren Services Company on
behalf of Ameren Illinois Company and Union Electric Company d/b/a
Ameren Missouri; Ascent Resources--Utica, LLC; Natural Gas Supply
Association; Chevron U.S.A. Inc.; Missouri Public Service
Commission; UGI Utilities, Inc.; Duke Energy Carolinas, LLC, Duke
Energy Progress, Duke Energy Florida, LLC, and Duke Energy Indiana,
LLC; Piedmont Natural Gas Company, Inc.; American Gas Association;
and Energy Transfer LP and its affiliates. Intervention is not
necessary in order to request rehearing of a rulemaking. See, e.g.,
Order No. 871-B, 175 FERC ] 61,098 at n.14.
\29\ Secretary Burgum April 30, 2025 Letter Endorsing Petition
for Rulemaking to Rescind Order No. 871 (citing Executive Order Nos.
14154, ``Unleashing American Energy;'' 14156, ``Declaring a National
Energy Emergency;'' and 14213, ``Establishing the National Energy
Dominance Council'').
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II. Discussion
12. NGA section 16 authorizes the Commission to make, amend, and
rescind any regulations as it may find appropriate to carry out the
provisions of the NGA.\30\ As stated above, the NGA was primarily
enacted to encourage the orderly development of natural gas supply.\31\
Consequently, NGA section 7(e) instructs the Commission to issue
certificates if it determines that a proposed pipeline ``is or will be
required by the present or future public convenience and necessity.''
\32\ NGA section 3 requires the Commission to authorize proposed import
or export facilities unless it finds that the proposed facilities
``will not be consistent with the public interest.'' \33\
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\30\ 15 U.S.C. 717o.
\31\ See supra P 1.
\32\ 15 U.S.C. 717f(e).
\33\ Id. 717b(a).
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13. As pointed out in INGAA's petition,\34\ construction of natural
gas infrastructure is a complex process, constrained by many outside
factors, including timing constraints related to weather (e.g., the
infeasibility in certain areas of winter construction) and certain
species (``tree clearing windows,'' i.e., months of the year during
which regulatory constraints are imposed on clearing of trees in areas
where species may be present).\35\ A potential 150-day delay in the
start of construction, under real world conditions, could equate to a
much longer and much less certain delay, jeopardizing the availability
of the project's capacity or reliability benefits in the timeframe
identified by the project sponsor as being needed. Delays can frustrate
achieving the identified objectives of approved projects that the
Commission found to be needed and in the public interest or required by
the public convenience and necessity, in addition to adversely
affecting project financing and increasing costs.
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\34\ INGAA Petition at 8-9.
\35\ See, e.g., Transcon. Gas Pipe Line Co., LLC, 161 FERC ]
61,250, at P 100 (2017) (upholding the Commission's finding that
delaying construction could jeopardize compliance with a limited
tree clearing window that was recommended to mitigate impacts on
threatened and endangered species in the project area); Algonquin
Gas Transmission, LLC, 151 FERC ] 61,118, at P 39 (2015)
(acknowledging that the project developer proposed a project
schedule that appropriately balanced weather, environmental, and
construction constraints).
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14. Additionally, there is widespread recognition that new natural
gas infrastructure, as well as continued maintenance to ensure the
integrity of the existing interstate natural gas system, is critical
for the immediate term to help address pressing nationwide reliability
and resource adequacy concerns.\36\ For example, the North American
Electric Reliability Corporation (NERC), which oversees the reliability
of the nation's bulk power system, has found that ``additional pipeline
infrastructure is needed to reliably serve electric load.'' \37\ The
Commission and NERC published a recent report that emphasizes that
adequate natural gas infrastructure is critical in meeting total
natural gas demand, particularly in periods of high demand to support
both natural gas and electric system reliability.\38\ Specifically, the
report notes that recently-built natural gas pipeline infrastructure
``played a crucial role in maintaining reliable electric supply during
[last winter's] high demand period by sustaining stable pipeline
pressure,'' \39\ but ``finding available pipeline transportation
capacity during a cold weather event may still be difficult in certain
areas of the country.'' \40\
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\36\ Interstate Nat. Gas Ass'n of Am., 191 FERC ] 61,209 at P 10
(2025) (order granting temporary waiver of Sec. 157.23); Interstate
Nat. Gas Ass'n of Am., 191 FERC ] 61,206, at P 6 (2025) (order
granting temporary waiver of regulations to increase blanket
certificate cost limitations).
\37\ NERC, 2022 Long-Term Reliability Assessment, 18 (2022),
<a href="https://www.nerc.com/pa/RAPA/ra/Reliability%20Assessments%20DL/NERC_LTRA_2022.pdf">https://www.nerc.com/pa/RAPA/ra/Reliability%20Assessments%20DL/NERC_LTRA_2022.pdf</a> (accessed May 1, 2025); see also NERC, 2024 Long-
Term Reliability Assessment, 15, 29 (2024), <a href="https://www.nerc.com/pa/RAPA/ra/Reliability%20Assessments%20DL/NERC_Long%20Term%20Reliability%20Assessment_2024.pdf">https://www.nerc.com/pa/RAPA/ra/Reliability%20Assessments%20DL/NERC_Long%20Term%20Reliability%20Assessment_2024.pdf</a> (accessed May
1, 2025) (discussing the need for natural gas pipeline capacity in
PJM, SPP, and ISO-NE).
\38\ NERC, January 2025 Arctic Events: A System Performance
Review, Docket No. AD25-9-000, 18-19 (2025), <a href="https://www.ferc.gov/media/report-january-2025-arctic-events-system-performance-review-ferc-nerc-and-its-regional">https://www.ferc.gov/media/report-january-2025-arctic-events-system-performance-review-ferc-nerc-and-its-regional</a> (accessed May 16, 2025).
\39\ Id. at 20.
\40\ Id. at 28.
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15. Notably, near-term natural gas and electricity demand are both
expected to grow rapidly in the United States. Total U.S. natural gas
demand is forecasted to average 98.7 billion cubic feet per day (Bcf/d)
in summer 2025, 1.7 Bcf/d more than summer 2024 levels and nearly 10%
more than the previous five-year summer average.\41\ Moreover, longer-
term forecasts show demand growing beyond this summer, with total U.S.
natural gas demand forecasted to increase from 35.2 trillion cubic feet
(Tcf) in 2025 to 35.6 Tcf in 2027.\42\ Anticipated levels of natural
gas exports, reflecting sustained demand for liquified natural gas
cargos in international markets and greater pipeline flows to Mexico,
are also expected to increase in both the near- and medium-terms. The
U.S. Energy Information Administration (EIA) forecasts gross natural
gas exports to average 15.5 Bcf/d in summer 2025, an increase of 3.2
Bcf/d from summer 2024 and 51% over the previous five-year average.\43\
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\41\ U.S. Energy Information Administration, Short-Term Energy
Outlook (Apr. 10, 2025), <a href="https://www.eia.gov/outlooks/steo/">https://www.eia.gov/outlooks/steo/</a>
(accessed May 8, 2025).
\42\ U.S. Energy Information Administration, Annual Energy
Outlook, Table 61: Natural Gas Imports and Exports and Table 62:
Natural Gas Consumption by End-Use Sector and Census Division (Apr.
15, 2025), <a href="https://www.eia.gov/outlooks/aeo/">https://www.eia.gov/outlooks/aeo/</a> (accessed May 8, 2025)
(accessed May 29, 2025). Total natural gas consumption is calculated
by subtracting net natural gas imports from natural gas consumption.
\43\ U.S. Energy Information Administration, Short-Term Energy
Outlook (May 6, 2025), <a href="https://www.eia.gov/outlooks/steo">https://www.eia.gov/outlooks/steo</a> (accessed
May 13, 2025).
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16. Further, domestic demand for electricity, the largest share of
which comes from natural gas generation, is also anticipated to grow
robustly between 2025 and 2029,\44\ sparking concern among market
operators about meeting that demand reliably and affordably. Grid
operators at the Midcontinent Independent System Operator, Inc. (MISO),
ISO New England Inc. (ISO-NE), PJM Interconnection, L.L.C. (PJM), and
Southwest Power Pool (SPP), which collectively serve 144 million people
across 36 states and the District of Columbia, have stressed that new
natural gas infrastructure is essential for improved gas-electric
coordination, energy security, and reliability.\45\ As noted in the
2024 NERC Long-Term Reliability Assessment, ``[n]atural gas-fired
generators are a vital bulk power system resource'' and ``natural gas
pipeline capacity additions over the past seven years are trending
downward, and some areas could experience insufficient pipeline
capacity for electric generation during peak periods.'' \46\
Constrained natural gas pipeline capacity and storage availability is
also having increasing impacts on domestic manufacturing
[[Page 26774]]
where manufacturing is facing a growing crisis due to inadequate
natural gas pipeline capacity.\47\
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\44\ Id.
\45\ MISO, ISO-NE, PJM, SPP, Strategies for Enhanced Gas-
Electric Coordination: A Blueprint for National Progress, 5 n.1
(2024), <a href="https://www.iso-ne.com/static-assets/documents/100008/20240220_joint_rtos-gas-electric-coordination-white-paper.pdf">https://www.iso-ne.com/static-assets/documents/100008/20240220_joint_rtos-gas-electric-coordination-white-paper.pdf</a>
(accessed May 16, 2025); PJM Interconnection, L.L.C. and
Midcontinent Indep. Sys. Operator, Inc., Comments, Docket No. PL18-
1-001, at 2 (filed May 25, 2022); ISO New England Inc., Comments,
Docket No. AD22-9-000, at 4 (filed June 9, 2023).
\46\ NERC, 2024 Long-Term Reliability Assessment, at 8 (2024),
<a href="https://www.nerc.com/pa/RAPA/ra/Reliability%20Assessments%20DL/NERC_Long%20Term%20Reliability%20Assessment_2024.pdf">https://www.nerc.com/pa/RAPA/ra/Reliability%20Assessments%20DL/NERC_Long%20Term%20Reliability%20Assessment_2024.pdf</a> (accessed May
19, 2025).
\47\ FERC, Federal-State Current Issues Collaborative (Apr. 28,
2025), <a href="https://www.ferc.gov/federal-state-current-issues-collaborative">https://www.ferc.gov/federal-state-current-issues-collaborative</a>.
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17. In recognition of these concerns, the President has issued
several executive orders that emphasize the Administration's policy
priorities to facilitate the efficient development of reliable,
necessary energy infrastructure to protect the country's national and
economic security. Executive Order 14154 seeks to eliminate delays in
and streamline the permitting process for energy infrastructure
projects and the expeditious completion of authorized projects, and
notes that it is ``in the national interest to unleash America's
affordable and reliable energy and natural resources.'' \48\ Executive
Order 14156 declares a national emergency and prioritizes the expansion
of energy infrastructure as a matter of critical national and economic
security.\49\
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\48\ Exec. Order No. 14,154, 90 FR 8353 (Jan. 20, 2025).
\49\ Exec. Order No. 14,156, 90 FR 8433 (Jan. 20, 2025).
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18. Accordingly, to promote and expedite efficient energy
development and reduce construction delays resulting from the
regulation's limitation on the issuance of construction authorizations
while a rehearing request is pending, the Commission proposes to remove
Sec. 157.23 from its regulations and revise Sec. 153.4 to eliminate
the cross-reference to Sec. 157.23. This action would reduce
unnecessary delays in, and burdens on, energy infrastructure
development.
19. Moreover, the Commission finds that changed circumstances
warrant the removal of Sec. 157.23. We acknowledge that the Commission
has expressed concerns posed by the possibility of construction
proceeding prior to the completion of Commission review; \50\ however,
subsequent to promulgation of Sec. 157.23, the court in Allegheny
clarified that stakeholders have the opportunity to seek judicial
relief while a rehearing request may be pending before the Commission.
In the Allegheny decision, the D.C. Circuit found that NGA section
19(a) allows parties that have filed a rehearing request to file a
petition for judicial review of the underlying order immediately after
rehearing is deemed denied, and that after a petition for judicial
review is filed the Commission retains the authority to ``modify or set
aside, in whole or in part'' the underlying order or findings.\51\ The
court noted that section 19(a) ensures the ``opportunity for the
[rehearing] applicant to seek temporary injunctive relief if needed
under the ordinary standards for a stay.'' \52\ By specifying that
parties are able to seek judicial review or a stay immediately
following a deemed denial of rehearing, Allegheny provides safeguards
to stakeholders' interests and helps ensure that parties may seek to
halt the commencement of construction during the pendency of a
rehearing request.
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\50\ See Order No. 871, 171 FERC ] 61,201 at P 11; Order No.
871-B, 175 FERC ] 61,098 at P 25.
\51\ See Allegheny, 964 F.3d at 13-17.
\52\ Id. at 17.
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20. The Commission also protects landowners and communities from
harm through its NGA sections 3 or 7 authorizations. Only after
carefully considering and balancing alleged harms of the project,
including potential impacts to landowners and communities, against its
benefits will the Commission proceed with issuing an NGA section 3
authorization or section 7 certificate. Although the Commission
generally makes NGA authorizations effective immediately upon issuance
by the Commission, as INGAA points out, because the Commission requires
in each authorization that project proponents secure all applicable
authorizations under federal law before beginning construction, it is
rare that construction can begin immediately on all but the smallest
scope projects, thus minimizing the perceived need for the regulations
we propose to eliminate here.\53\
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\53\ INGAA Petition at P 15 (citing Order No. 871-B, 175 FERC ]
61,098 at P 42).
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21. The Commission will also continue to consider whether
additional protections are warranted in individual proceedings. The
Commission's proposal here does not modify our case-by-case application
of our presumptive stay policy, which may be applied where a landowner
who is potentially subject to eminent domain proceedings protests the
proposal,\54\ and the applicant has not acquired the necessary property
interests.\55\
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\54\ Order No. 871-C, 176 FERC ] 61,062 at P 41 (clarifying that
the stay policy applies to landowners subject to eminent domain).
\55\ See Order No. 871-B, 175 FERC ] 61,098 at PP 43-51. The
Commission has affirmatively directed a presumptive stay in four
orders issuing section 7 certificates. Transcon. Gas Pipe Line Co.,
LLC, 182 FERC ] 61,006 (2023), N. Nat. Gas Co., 178 FERC ] 61,203
(2022), Spire Storage W. LLC, 179 FERC ] 61,123 (2022), Gulf S.
Pipeline Co., LLC, 181 FERC ] 61,145 (2022). As we have explained, a
pipeline developer may move to preclude, or lift, such a stay based
on a showing of significant hardship. Order No. 871-B, 175 FERC ]
61,098 at P 51.
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22. Accordingly, in light of the Commission's experience in
implementing Allegheny, specifically that relatively few rehearing
requests are filed by landowners whose property would be encumbered by
the project, the Commission has determined that Sec. 157.23 may no
longer be necessary.
III. Request for Comments
23. The Commission requests and encourages public comments on this
notice of proposed rulemaking. Additionally, the Commission seeks
comment on whether it should instead revise Sec. 157.23 to (1) limit
its scope while maintaining some protections for certain types of
stakeholders or (2) reduce the time period on the limitation for
issuing authorizations to proceed with construction. The Commission
will consider comments it receives and provide responses in a final
rule, with changes, if warranted.
IV. Information Collection Statement
24. The Paperwork Reduction Act \56\ requires each federal agency
to seek and obtain the Office of Management and Budget's (OMB) approval
before undertaking a collection of information (i.e., reporting,
recordkeeping, or public disclosure requirements) directed to ten or
more persons or contained in a rule of general applicability. OMB
regulations require approval of certain information collection
requirements contained in final rules published in the Federal
Register.\57\ This notice of proposed rulemaking does not contain any
information collection requirements. The Commission is therefore not
required to submit this rule to OMB for review.
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\56\ 44 U.S.C. 3501-3521.
\57\ See 5 CFR 1320.12.
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V. Environmental Analysis
25. The Commission is required to prepare an Environmental
Assessment or an Environmental Impact Statement for any action that may
have a significant adverse effect on the human environment.\58\ The
Commission has categorically excluded certain actions from this
requirement as not having a significant effect on the human
environment, including the promulgation of rules that are clarifying,
corrective, or procedural, or that do not substantially change the
effect of legislation or the regulations being amended.\59\ This notice
proposes to remove Sec. 157.23 from the Commission's regulations and
revise Sec. 153.4 to remove the cross-reference to Sec. 157.23.
Because the proposed rule is procedural in nature and falls within this
categorical exclusion, preparation of an Environmental Assessment or an
[[Page 26775]]
Environmental Impact Statement is not required. Further, we note that
this proposed rule only changes the potential construction commencement
date for natural gas projects, and such a change would not alter the
environmental effects of a project constructed and operated in
compliance with its certificate or authorization order.
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\58\ Reguls. Implementing the Nat'l Env't Pol'y Act of 1969,
Order No. 486, 41 FERC ] 61,284 (1987).
\59\ 18 CFR 380.4(a)(2)(ii).
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VI. Regulatory Flexibility Act
26. The Regulatory Flexibility Act of 1980 (RFA) \60\ generally
requires a description and analysis of proposed rules that will have
significant economic impact on a substantial number of small entities.
The RFA mandates consideration of regulatory alternatives that
accomplish the stated objectives of a proposed rule and minimize any
significant economic impact on a substantial number of small
entities.\61\ In lieu of preparing a regulatory flexibility analysis,
an agency may certify that a proposed rule will not have a significant
economic impact on a substantial number of small entities.\62\ The
Small Business Administration's (SBA) Office of Size Standards develops
the numerical definition of a small business.\63\ The SBA has
established a size standard for pipelines transporting natural gas,
stating that a firm is small if its annual receipts (including its
affiliates) are less than $41.5 million.\64\
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\60\ 5 U.S.C. 601-612.
\61\ Id. 603(c).
\62\ Id. 605(b).
\63\ 13 CFR 121.101.
\64\ 13 CFR 121.201, subsection 486.
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27. If enacted, this proposed rule would apply to entities, a small
number of which may be small businesses, that receive Commission
authorization to construct new natural gas transportation, export, or
import facilities under section 3 or 7 of the NGA. However, the
proposed rule would have no adverse effect on these entities,
regardless of their status as a small entity or not, as the rule
imposes no action or requirement on those entities. Instead, the
proposed rule would remove a time-limited prohibition on the issuance
of authorizations to proceed with construction activities while
rehearing is pending. Accordingly, pursuant to section 605(b) of the
RFA, the Commission certifies that this proposed rule will not have a
significant economic impact on a substantial number of small entities.
VII. Comment Procedures
The Commission invites interested persons to submit comments on the
matters and issues proposed in this notice to be adopted, including any
related matters or alternative proposals that commenters may wish to
discuss. Comments are due July 24, 2025. Comments must refer to Docket
No. RM25-9-000, and must include the commenter's name, the organization
they represent, if applicable, and their address in their comments. All
comments will be placed in the Commission's public files and may be
viewed, printed, or downloaded remotely as described in the Document
Availability section below. Commenters on this proposal are not
required to serve copies of their comments on other commenters.
28. The Commission encourages comments to be filed electronically
via the eFiling link on the Commission's website at <a href="http://www.ferc.gov">http://www.ferc.gov</a>. The Commission accepts most standard word processing
formats. Documents created electronically using word processing
software must be filed in native applications or print-to-PDF format
and not in a scanned format. Commenters filing electronically do not
need to make a paper filing.
29. Commenters that are not able to file comments electronically
may file an original of their comment by USPS mail or by courier-or
other delivery services. For submission sent via USPS only, filings
should be mailed to: Federal Energy Regulatory Commission, Office of
the Secretary, 888 First Street NE, Washington, DC 20426. Submission of
filings other than by USPS should be delivered to: Federal Energy
Regulatory Commission, 12225 Wilkins Avenue, Rockville, MD 20852.
VIII. Document Availability
30. In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
internet through the Commission's Home Page (<a href="http://www.ferc.gov">http://www.ferc.gov</a>).
31. From the Commission's Home Page on the internet, this
information is available on eLibrary. The full text of this document is
available on eLibrary in PDF and Microsoft Word format for viewing,
printing, and/or downloading. To access this document in eLibrary, type
the docket number excluding the last three digits of this document in
the docket number field.
32. User assistance is available for eLibrary and the Commission's
website during normal business hours from FERC Online Support at 202-
502-6652 (toll free at 1-866-208-3676) or email at
<a href="/cdn-cgi/l/email-protection#f2949780919d9c9e9b9c97818782829d8086b294978091dc959d84"><span class="__cf_email__" data-cfemail="fc9a998e9f9392909592998f898c8c938e88bc9a998e9fd29b938a">[email protected]</span></a>, or the Public Reference Room at (202) 502-
8371, TTY (202)502-8659. Email the Public Reference Room at
<a href="/cdn-cgi/l/email-protection#027277606e6b612c7067646770676c6167706d6d6f42646770612c656d74"><span class="__cf_email__" data-cfemail="89f9fcebe5e0eaa7fbecefecfbece7eaecfbe6e6e4c9efecfbeaa7eee6ff">[email protected]</span></a>.
List of subjects
18 CFR Part 153
Exports, Natural gas, Reporting and recordkeeping requirements.
18 CFR Part 157
Administrative practice and procedure, Natural gas, Reporting and
recordkeeping requirements.
Issued: June 18, 2025.
Debbie-Anne A. Reese,
Secretary.
In consideration of the foregoing, the Commission proposes to amend
parts 153 and 157, Chapter I, Title 18, Code of Federal Regulations, as
follows:
PART 153--APPLICATIONS FOR AUTHORIZATION TO CONSTRUCT, OPERATE, OR
MODIFY FACILITIES USED FOR THE EXPORT OR IMPORT OF NATURAL GAS
0
1. The authority citation for part 153 continues to read as follows:
Authority: 15 U.S.C. 717b, 717o; E.O. 10485; 3 CFR, 1949-1953
Comp., p. 970, as amended by E.O. 12038, 3 CFR, 1978 Comp., p. 136,
DOE Delegation Order No. 0204-112, 49 FR 6684 (February 22, 1984).
0
2. Revise Sec. 153.4 to read as follows:
Sec. 153.4 General requirements.
The procedures in Sec. Sec. 157.5, 157.6, 157.8, 157.9, 157.10,
157.11, and 157.12 of this chapter are applicable to the applications
described in this subpart.
PART 157--APPLICATIONS FOR CERTIFICATES OF PUBLIC CONVENIENCE AND
NECESSITY AND FOR ORDERS PERMITTING AND APPROVING ABANDONMENT UNDER
SECTION 7 OF THE NATURAL GAS ACT
0
3. The authority citation for Part 157 continues to read as follows:
Authority: 15 U.S.C. 717-717w, 3301-3432; 42 U.S.C. 7101-7352.
0
4. Remove Sec. 157.23.
[FR Doc. 2025-11582 Filed 6-23-25; 8:45 am]
BILLING CODE 6717-01-P
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