Maryland AG Joins Coalition Against Federal Plan to Expedite Natural Gas Pipeline Approvals

Maryland Attorney General Anthony G. Brown has joined a coalition of state attorneys general in opposition to a proposed rule by the Federal Energy Regulatory Commission (FERC) that they argue would unlawfully streamline the approval process for natural gas pipeline projects. The coalition expressed concerns that this expedited review process could lead to increased costs for consumers, greater air pollution, and exacerbate climate change.

The comment letter, submitted to FERC, specifically addresses a proposed rule issued in May that seeks to expand the types of pipeline projects eligible for automatic authorization under FERC’s “blanket certificate” system. This expansion would permit more projects, potentially higher in cost and scope, to bypass the comprehensive review process mandated by the Natural Gas Act. Such reviews are intended to determine if a project is truly in the public interest and meets consumer needs. The coalition emphasized that FERC should ensure that new pipelines do not impose undue burdens on consumers, the environment, and water resources.

Under the proposed changes, FERC intends to significantly raise the monetary thresholds for projects that can receive automatic approval. Currently, projects costing less than $14.5 million qualify for this expedited process, allowing companies to proceed without prior public notification or review by FERC. The proposed rule seeks to more than double this limit to $30 million. Furthermore, the threshold for “prior notice” projects, which require a 60-day notice period to FERC and the public before approval can be granted if no objections arise, would also be elevated. This threshold would increase from the current $41.1 million to $86 million. In addition to these monetary adjustments, FERC proposes to link these thresholds to an industry-specific index for natural gas infrastructure construction costs, replacing the current inflation-based measure, and to annually adjust them accordingly. The proposal also includes provisions for automatic “prior notice” approval for all compressor station expansion projects located within the boundaries of existing facilities, regardless of their cost.

The coalition contends that FERC’s proposed rule violates several federal laws, including the Natural Gas Act, the Administrative Procedure Act, and the National Environmental Policy Act. In addition to Attorney General Brown, the comment letter was signed by the attorneys general of Arizona, California, Colorado, Connecticut, the District of Columbia, Illinois, Maine, Massachusetts, Michigan, Minnesota, New York, Oregon, Vermont, and Washington.

Article by Mel Anara, based upon information from the Maryland Attorney General’s Office.

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