New Bill Gives FERC Sole Control Over Pipeline Reviews, Stripping State Water Quality Veto Power

This legislation, titled the Improving Interagency Coordination for Pipeline Reviews Act, sets up a fast lane for natural gas pipeline construction by consolidating nearly all environmental review power under one roof: the Federal Energy Regulatory Commission (FERC).

In short, this bill makes FERC the single, undisputed lead agency for all environmental reviews required under the National Environmental Policy Act (NEPA) for new pipeline projects. It mandates that all other federal and state agencies involved in permitting must coordinate with FERC, defer to the scope of review FERC sets, and stick to FERC’s timeline. The goal is clear: cut down the time it takes to get major energy projects approved, which could mean more predictable timelines for infrastructure development. This is a big deal because it shifts the balance of power significantly toward the federal level and away from state-level environmental checks.

The New Sheriff in Town: FERC Takes the Wheel

Under the proposed rules, FERC gets to be the only lead agency for NEPA reviews. This isn't just a title change; it comes with teeth. Other agencies that need to issue permits—say, the Army Corps of Engineers or the Environmental Protection Agency—must give “maximum deference” to the scope of the NEPA review that FERC determines is appropriate. Think of it like this: if you’re planning a big home renovation and the city zoning board (FERC) decides to only look at the front yard, the county health department (another agency) is basically required to limit their review to the front yard too, even if they had concerns about the foundation in the back. This provision, found in Section 2, means FERC can effectively narrow the environmental scrutiny applied by agencies with specialized expertise.

Furthermore, if an agency doesn't participate in FERC’s process from the start, their comments can be excluded from the official record, and they can’t conduct their own supplemental environmental review later unless they jump through serious legal hoops. This ensures that the only voices that matter are those that play ball on FERC’s schedule, potentially limiting the input from local or specialized agencies that might have legitimate concerns about a project's localized impact.

Water Quality Oversight Gets Rerouted

One of the most significant changes for everyday people is how this bill handles water quality permits. Currently, pipeline applicants must obtain a certification under Section 401 of the Federal Water Pollution Control Act, which often gives state environmental agencies the power to set conditions or even veto projects that could harm local rivers, lakes, or drinking water sources. This bill removes the requirement for applicants to provide this certification.

Instead, FERC is tasked with identifying the relevant state water pollution control agency as a potential participating agency. That state agency can propose conditions to ensure compliance with federal water standards, but FERC is the final arbiter, only including those conditions if it finds them “necessary” for compliance. This is a major downgrade in state authority; state regulators lose their independent gatekeeping power, and the final decision on protecting state waters rests with a federal energy regulator whose primary mandate is facilitating energy infrastructure.

The Race Against the Clock

For those who like efficiency, the bill introduces strict, mandatory deadlines. All participating agencies must formulate a plan to complete their work “concurrently” with FERC’s NEPA review and stick to FERC’s overall schedule. Federal authorizations must be issued within 90 days of FERC completing its NEPA review. If an agency misses a deadline, its head must notify Congress and FERC within five days and explain why. This is designed to eliminate the bureaucratic logjams that can delay projects for years, offering a clear benefit to the pipeline industry by creating predictable timelines.

To keep everyone honest, FERC is required to track and publish the entire permitting process online—including the schedule, required actions, expected completion dates, and explanations for any delays. While the goal is to improve accountability, the real-world impact is that the pressure is squarely on the regulatory agencies to keep up with the schedule set by the lead agency, FERC.