West Virginia AG: FERC RM25-12-001 Revision Backed by 26 States

• West Virginia Attorney General JB McCuskey leads a 26-state coalition supporting FERC's Proposed Rule RM25-12-001.
• The rule aims to revise the Blanket Certificate Program to expedite natural gas delivery and stabilize consumer prices.
• Proposed changes include raising the dollar limit for fast-track projects to $30 million to account for increased costs.
• The coalition argues these revisions will boost West Virginia jobs, foster economic growth, and help lower energy prices nationwide.
• Existing environmental protections, including the Clean Air Act and Clean Water Act, and public protest rights will remain in effect.

By raising this limit, interstate natural gas pipeline companies would find it simpler to undertake necessary modifications and upkeep of their facilities, bypassing the extensive, months-long federal review process typically required for individual projects.

West Virginia Attorney General JB McCuskey is spearheading a coalition of 26 states that has formally expressed support for a proposed revision to the Federal Energy Regulatory Commission's (FERC) Blanket Certificate Program. The initiative, identified as Docket No. RM25-12-001, aims to streamline the process for natural gas infrastructure projects, with a stated goal of accelerating the delivery of West Virginia's natural gas to market and helping to stabilize consumer energy prices.

Attorney General McCuskey emphasized the broad benefits of updating these pipeline regulations, citing positive impacts on West Virginia's economy, energy costs, and job market. He highlighted that the proposed changes would reduce bureaucratic hurdles for natural gas producers, while simultaneously ensuring greater access to affordable energy for consumers. The Attorney General specifically noted the protection of over 70,000 natural gas jobs within West Virginia, with potential for further growth, characterizing the move as a pragmatic step toward efficiency.

The Blanket Certificate Program, originally established in 1982, was designed to provide a more efficient authorization pathway for certain routine activities related to natural gas infrastructure. The current Proposed Rule seeks to modernize this program by increasing the financial threshold for projects eligible for fast-track approval. Under the proposed revisions, the dollar limit for these expedited projects would be raised to $30 million.

This adjustment is intended to reflect contemporary cost structures for infrastructure development and maintenance. By raising this limit, interstate natural gas pipeline companies would find it simpler to undertake necessary modifications and upkeep of their facilities, bypassing the extensive, months-long federal review process typically required for individual projects. This change is central to the coalition's argument for increased efficiency in natural gas infrastructure development.

The coalition of states supporting the RM25-12-001 Proposed Rule contends that enhancing pipeline capacity through these revisions will contribute to lower natural gas and electricity prices across the nation. They argue that a more efficient authorization process will lead to a more robust energy infrastructure, ultimately benefiting consumers through increased supply and competitive pricing.

Beyond consumer price stability, the proposed changes are expected to foster economic growth and protect jobs. Attorney General McCuskey specifically pointed to the significant number of natural gas jobs in West Virginia that stand to be secured and potentially expanded by these regulatory updates, framing the initiative as a 'win-win' for all stakeholders involved in the energy sector.

Despite the proposed streamlining of authorization processes, the coalition underscores that critical environmental and public safeguards will remain fully intact. Residents will continue to possess rights to notice and to protest proposed projects, with any serious protest triggering a comprehensive federal review. This ensures that public input remains a vital component of the approval process.

Furthermore, the Proposed Rule does not alter the applicability of major federal environmental statutes, including the Clean Air Act, the Clean Water Act, and the Endangered Species Act. In West Virginia, specific state-level permits for water and air quality will also continue to be mandatory, ensuring that environmental oversight is maintained throughout the lifecycle of any pipeline modifications or maintenance activities.

Lawyers advising natural gas pipeline companies should note the proposed increase in dollar limits for fast-track projects under FERC's Blanket Certificate Program, which could streamline future infrastructure modifications. Compliance officers should monitor the finalization of Docket No. RM25-12-001 to adapt permitting strategies and leverage potentially faster authorization processes, while still ensuring adherence to environmental regulations.

Source: Original reporting via West Virginia Attorney General's Office