U.S. Energy Commission Issues Rule That Will Speed Up Infrastructure Projects
Last week, the Federal Energy Regulatory Commission (FERC) published a final rule allowing construction of pipelines and natural gas facilities to proceed during certain appeals requests.
More specifically, the new regulation removes a provision enacted in 2020, and then amended in 2021, that had been criticized by stakeholders in the energy industry as a way for infrastructure opponents to stall construction. The new rule means that pipelines can now start construction immediately upon receiving FERC approval without waiting for a rehearing.
According to Brittany Kelm, a senior policy adviser for the National Energy Dominance Council, the new regulation will result in several other benefits as well, including:
- Shortening project development periods by six to 12 months;
- Greater certainty for business since companies will not have to fear losing seasonal construction windows while waiting for legal resolution; and
- Fewer infrastructure project cancellations due to timing-related cost overruns or permit expirations.