To date, the natural gas industry has played a critical role in helping reduce GHG emissions across the value chain.  Between 2005 and 2019, total U.S. electricity generation increased by almost 2 percent while related CO2 emissions fell by 33 percent, a reduction made possible by increased use of natural gas. Since 1990, the natural gas industry has reduced methane emissions by 70 million metric tons of CO2e – equivalent to taking nearly 15 million cars off of the road for an entire year. Our members also participate in GHG reduction programs like EPA’s Natural Gas STAR and Methane Challenge Programs and One Future to continue that momentum and further reduce the emissions of our industry.

In addition to emissions reductions, the natural gas industry facilitates the increased use of renewable energy sources. According to research from the National Bureau of Economic Research, the growth of natural gas for power generation correlates to the increased deployment of renewables – ultimately lowering costs for consumers while continuing to reduce GHG emissions and ensure energy reliability.  

For example, as the regional grid operator, ISO New England, acknowledges, a lack of pipelines carrying natural gas into the region contributes to less reliability, higher emissions, and higher energy costs, further highlighting the role gas plays in the power mix and that pipelines have in ensuring electric reliability and affordability.

INGAA’s members build upon these industry-wide achievements in emissions reductions and the further adoption of renewable energy by constantly finding new ways to improve natural gas pipeline safety and efficiency. INGAA member TC Energy is advancing the industry towards decarbonization and emissions reductions through its work to gradually convert its compressor fleet to zero-emission electric motor drives on its pipeline systems.

As innovation leaders in the natural gas industry, INGAA members engage in critical partnerships with key stakeholders focused on delivering creative and sustainable climate solutions. For example, as part of INGAA member Equitrans Midstream’s Earth Day celebration this year, the company is kicking off a two-year sustainability partnership with urban beekeeping organization Alvéole. Through this partnership, Equitrans will bring honeybee hives to three of its offices alongside on-site informational sustainability events for employees.

Other INGAA members, like Williams, have used their industry position to invest in and support energy companies innovating technologies for reduced emissions. Williams’ Corporate Venture Capital (CVC) program’s strategic relationship with Aurora Hydrogen – a tech startup developing the technology for converting natural gas to zero-emission hydrogen – demonstrates the value of cross-industry support and collaboration in addressing climate change. These kinds of partnerships are fundamental to the success of a holistic, cross-industry approach to environmental sustainability.

By continuing to innovate and engage in strategic partnerships, the natural gas industry will remain a leader not just in safely providing affordable energy, but in creating climate solutions for the future.

The study modeled three hypothetical net-zero scenarios: All Options, Higher Fuel Costs, and Limited Options. The All Options scenario assumes that all clean energy technologies, including carbon capture, will be readily available for commercial use before 2050. Higher Fuel Costs also assumes technological availability, but with increased fossil fuel costs. Limited Options views a scenario where carbon capture is not available.

Regardless of the scenario, the report found that pipelines will be needed to provide reliability and reductions in greenhouse gas emissions if net-zero is to be achieved:

“Natural gas infrastructure plays a crucial role in all scenarios in providing firm capacity for a transitioning power sector and delivering low-carbon fuel to industry and buildings, particularly in colder climates.”

The report goes on to state that even if more alternative energy sources emerge, available pipeline capacity will ensure that clean-burning natural gas can be supplied during peak demand periods, thus discontinuing the need to turn to higher-emitting sources such as oil and coal:

“Even with lower volumes of delivered gas, pipeline capacity requirements remain to serve peak demands. Evolution of business models to support investment in the maintenance and modernization of gas infrastructure will enable continued reliable delivery of gas for peak energy needs, as well as the expanded use of low-carbon fuels.”

Furthermore, while natural gas continues to play a strong role in all scenarios, in the All Options scenario, peak consumption of natural gas in the United States will enable the country to meet its ambitious emissions goals while eliminating excess costs:   

“Annual U.S. natural gas consumption could remain at levels similar to today, even in a net-zero energy future.”

The report asserts that the All Options scenario will lead to the least expensive energy transition due to the flexibility and reliability of having multiple different energy sources available but in order for this scenario to play out, natural gas costs must remain low. That’s why activist calls to impede the construction of natural gas infrastructure and increase development costs in the name of climate action are incredibly contradictory, as the likeliness of achieving net-zero by 2050 primarily hinges on the cost of the transition.

EPRI’s report confirms what we have known for decades: natural gas and its related infrastructure are necessary to achieving a low-carbon economy. Efforts to impede the use and construction of natural gas will only threaten energy reliability and security, raise energy costs and risk meeting our nation’s, and the world’s, climate goals and ambitions.  

In a joint statement with European Commission President Ursula von der Leyen last week, President Biden promised the U.S. “will maintain its regulatory environment with an emphasis on supporting this emergency energy security objective and the REPowerEU goals.” Meanwhile, the EU stated its plans to “accelerate regulatory procedures to review and determine approvals for LNG import infrastructure.” Maintaining the current status quo of unclear and inconsistent regulatory and permitting processes will do nothing to help our allies abroad.

Prior to March 24, the Federal Regulatory Energy Commission (FERC) had not approved any major natural gas infrastructure projects since June 2021. There are currently 11 major natural gas projects pending approval before the Commission, more than half of which have their final environmental documents.

FERC’s approval is the imperative next step for these important projects. Without the additional capacity, which totals more than 12,141 MMcf/day pending currently, some of the added gas supply policymakers are calling on developers to produce will not reach American consumers or LNG terminals along U.S. coasts for export. 

As today’s geopolitical realities and global energy markets have demonstrated, there is a critical need for continued investment in natural gas infrastructure. INGAA strongly encourages the Biden Administration and permitting agencies, like FERC, to act expeditiously and move these pending projects forward to ensure the reliable transport of natural gas necessary to meet our country’s energy and climate goals both at home and abroad.

INGAA’s members, who represent most of the interstate natural gas industry in the US and Canada, and operate almost 200,000 miles of pipeline, are the backbone of our natural gas industry. They fuel power plants that keep the lights on, heat our homes, and drive community investments across the country. However, they face challenges from policymakers, including federal permitting delays and a proposed new tax on natural gas that would limit our ability to deploy US natural gas to achieve our energy security and climate goals.

Here’s a quick snapshot of what Ms. Andryszak said at the event:

“We are not immune to this (energy) crisis in the United States. And yet, there are warning signs that policymakers are ignoring while also pursuing policies that could worsen the situation.

“Here’s the truth that many of our policymakers refuse to acknowledge. For so many of our nation’s challenges, natural gas is part of the answer.

“If our goal is to keep energy prices low, natural gas is the answer.

• “According to the EIA, the cost to heat an average home with natural gas this winter is $746. Homes using electric heating, however, will pay $1,268. That means natural gas is saving homeowners nearly 40%. The broader industry trend of replacing coal with lower-cost natural gas has also protected working families from higher electric bills.
• “Our abundance of natural gas has allowed for a domestic manufacturing renaissance. According to the American Chemistry Council, as of October 2021 the shale gas revolution has spurred more than $200 billion in manufacturing investment in the United States. Without investment in natural gas, including the pipelines and infrastructure necessary to move it from the well pad to the consumer, these investments almost assuredly would have been made overseas.

“If our goal is to address climate change, natural gas is a big part of the answer.

• “The United States has consistently led the world in reducing CO2 emissions, driven mostly by our competitive advantage in abundant and affordable natural gas. In fact, over the past 15 years, no fuel has done more to reduce carbon dioxide emissions in the United States than natural gas.
• “Last year, INGAA released our 2021 Climate Statement, including working as an industry towards reaching net-zero GHG emissions from natural gas transmission and storage operations by no later than 2050, supported by necessary technology advancements and sound public policy initiatives. INGAA also supports federal methane standards, and our members have a long history of minimizing methane emissions from their operations.

“If we want to strengthen our position as a global energy leader, natural gas is the answer.

• “Europe is suffering from natural gas shortages and rising energy prices. Natural gas storage levels in the EU are at an all-time low of 56%. The continent has become more dependent on imported gas from Russia. European households are on track to pay an average of 54 percent more for energy than just two years ago.
• “But we should not just help our friends in Europe through this crisis. We should also learn from their experience, so we don’t replicate it here.
• “We must continue investing in American energy, not restricting it – whether it’s renewable energy technologies or traditional fuels like natural gas. As Europe has discovered, you cannot ban your way to clean energy without threatening affordability and reliability.

“If we want to expand the use of renewable energy, natural gas is the answer.

• “The Biden administration has made a major commitment to expanding the use of renewable energy in the United States, particularly wind and solar. But we all must recognize that these technologies are complementary to natural gas, and they require a robust natural gas infrastructure to ensure affordability and reliability.
• “Research from the National Bureau of Economic Research, for example, found a correlation between the growth of natural gas for power generation and the increased deployment of renewables. This ‘win-win’ delivers lower costs for consumers while also continuing to reduce greenhouse gas emissions and ensuring energy reliability.

“If we want to create good jobs, natural gas infrastructure is part of the answer.

• “The natural gas industry supports over 600,000 jobs. Natural gas industry workers earn a median hourly wage of more than $30 an hour, approximately 59% higher than the national average, and unionization rates in our industry far surpass the national private sector average.
• “Our employees are proud to be part of an industry that provides family-sustaining jobs, and they’re also proud of the opportunities that natural gas infrastructure enables across our country… Investing in natural gas infrastructure will continue to create job opportunities across our economy, as long as permitting policies actually allow for that investment.”

In case you missed it, here’s what people said about the event: 

• “The trajectory of US energy policy threatens to raise fuel prices, throttle renewable energy expansion and hamper energy diplomacy, according to the president and CEO of the Interstate Natural Gas Association of America.” – Tom DiChristopher, S&P Global
• “Some of the policy issues top-of-mind for USEA panelists during the second session included those around climate challenges, tax credits and investment incentives, energy infrastructure, cybersecurity, and workforce-related and supply chain pressures.” – Kim Riley, Daily Energy Insider
• “The U.S. has a broad and diverse range of energy resources, and all of them — from coal and gas to nuclear and renewables — are critical to the nation’s clean energy future.” – Amanda Cook, K Kaufmann, and Jennifer Delony, RTO Insider

INGAA members understand the critical role they have in addressing climate change, keeping energy prices low, and supporting the entire energy industry as the US strengthens its position as a global energy leader. Regardless of the challenges ahead, our members stand ready to deliver the solutions we need.

Abby Miller

Director of Communications, INGAA

Kim Watson

2021-2022 Chair of the INGAA Board

Amy Andryszak

President and CEO of INGAA and the INGAA Foundation

Tony Straquadine

Executive Director of the INGAA Foundation

C.J. Osman

Vice President of Government Affairs, INGAA

Maggie O'Connell 

Director of Security, Reliability, and Resilience, INGAA

Ben Kochman

Director of Pipeline Safety, INGAA

As we have demonstrated time and time again, INGAA and its members are steadfast in our commitment to reducing methane emissions. This is evident in our 2021 Climate Statement, our pledge to work towards net-zero greenhouse gas (GHG) emissions by 2050 and our support of durable regulations on methane emissions by the U.S. Environmental Protection Agency (EPA) and Pipeline and Hazardous Materials Safety Administration (PHMSA).

Today, you have the opportunity to contact your representatives in Congress and urge them to OPPOSE the new tax on natural gas.

And here’s why:

1. NEW ENERGY TAX: Supporters of the tax are trying to position this as a plan to reduce emissions. Don't be fooled—this is not about emissions, but about increasing the price of natural gas to limit its use. This tax ignores that natural gas is an affordable, reliable energy source for more than 180 million Americans and 5.5 million businesses.

2. HIGHER HOUSEHOLD ENERGY BILLS: The tax will increase the price of natural gas and raise costs for customers, putting the burden most heavily on the middle class and lower-income Americans. In one scenario, it is estimated this tax would increase natural gas bills by 12%-34%  for the average American family. 

3. TAXING THE LOWER AND MIDDLE CLASS: Again, this is not about reducing emissions. It’s about raising revenue. Congress is using this to help pay for the $3.5 trillion reconciliation plan. It is a new tax on lower- and middle-class families in the form of higher energy bills. Further, the collected revenue will divert resources away from our industry’s innovation and investments in reducing emissions, directly undermining efforts to address climate change and putting nearly one hundred thousand jobs at risk, especially in energy-producing states.

4. METHANE REGULATIONS ALREADY IN PLACE: Our industry supports strong rules on methane emissions. The EPA and PHMSA have announced new, forthcoming methane emissions regulations, including regulations that Congress has mandated. INGAA has voiced support for these as part of a broader plan to reach net-zero emissions. A tax on natural gas would be duplicative, costly, and unnecessary.

The time to act is now. As Congress debates the current budget reconciliation package, we urge you to consider the significant impacts this new tax on natural gas will have on consumers. Contact your representative and express your concerns today.

Last month, INGAA held a virtual roundtable, welcoming beltway and industry media to meet our new chairman, David Slater of DTE Midstream, and talk to INGAA subject matter experts on the important issues facing the interstate natural gas pipeline industry. We also unveiled our new climate change statement, which outlines our members’ commitments to address climate change while ensuring a safe, reliable, and resilient energy transmission system that provides clean, affordable fuel to consumers across the country.

INGAA members’ climate commitments include: reducing their individual GHG emissions from natural gas transmission and storage operations; providing consistent and transparent data collection, measurement, and reporting of GHG emissions from operations; reducing the carbon intensity of natural gas infrastructure by adopting and investing in more innovative technologies; and working as an industry towards reaching net-zero greenhouse gas (GHG) emissions from natural gas transmission and storage operations by no later than 2050. INGAA’s climate statement also identifies key principles that should shape constructive energy policy and recognizes the important role innovative technology will play in our success.

Issuing this climate statement and adopting these commitments was the result of months of work and many thoughtful conversations among our members, including how to expand our commitments beyond INGAA’s 2018 voluntary methane emissions commitments. We’re extremely proud of our climate statement and we were pleased to see our media roundtable attendees take an interest in it, as well. Here’s what people are saying about INGAA’s new climate statement:

“The nation's natural gas pipeline industry is committing to a new goal to cut greenhouse gas emissions from its operations to net zero by 2050. The policy from the Interstate Natural Gas Association of America means its members are committing to new transparency initiatives, pushing for more development of renewable natural gas and advocating for carbon capture technology, among other moves, the group said today.”—Timothy Cama, E&E News

“The Interstate Natural Gas Association of America's Jan. 26 announcement represented the strongest climate commitments to date by the group, whose members include the operators of almost 200,000 miles of pipeline… INGAA's commitments focused on voluntary measures, building on a 2018 pledge to minimize methane emissions pipeline and storage infrastructure.” –Corey Paul, S&P Global

“To achieve the new goal, INGAA is promising to reduce the carbon intensity of its natural gas infrastructure, as well as adopting and investing in technologies such as renewable natural gas and carbon capture, and transporting low or zero carbon fuels like hydrogen. The products delivered by INGAA’s network could support the growth of variable renewables, the group says.” –Josh Siegel, Washington Examiner

“The work won’t be done overnight, Slater said, but rather it will be a ‘three-decade journey’ to reduce the impacts of pipeline infrastructure. There is a ‘vibrant conversation’ ongoing around the country, Slater said, regarding new technologies and ways to ‘decarbonize the energy delivery highway.’ INGAA’s pipelines now move around one-third of the energy consumed across the country today.” –Carolyn Davis, Natural Gas Intelligence

 

“In 2019, natural gas was the largest source of electric power generation, making up 38%, according to INGAA. Carbon dioxide emissions from the U.S power sector declined by 33% from 2005 to 2019 with natural gas accounting for more than half of the reductions, according to the EIA. INGAA members’ efforts have resulted in a reduction of CO2-equivalent emissions from transmission and storage compressor stations that is the equivalent of removing more than one million passenger vehicles from the road.” –Maddy McCarty, Pipeline and Gas Journal

“To support the growth of renewable energy and generation technology, INGAA also plans to ramp up services necessary for ‘flexible, fast-ramping generation’ and energy storage to help minimize the risk of power disruptions, blackouts and brownouts during periods of peak demand… INGAA’s members also committed to ensuring there is an ‘active and constructive engagement’ with lawmakers, regulators, investors and other stakeholders to develop energy policies ‘that utilize our national gas transmission infrastructure, benefit our environment, and reduce GHG emissions.’” –Carolyn Davis, Natural Gas Intelligence

INGAA members recognize that sustainability and protecting our environment is not simply a choice. We firmly believe that building a stronger and more equitable economy goes hand in hand with creating a cleaner world. We’re excited to collaborative with industry peers, our customers, communities, policymakers, and other stakeholders to reduce emissions and address climate change together.

The roots of FERC began in 1920, when Congress established FERC’s predecessor, the Federal Power Commission (FPC), under the Federal Water Power Act (FWPA, now referred to as the FPA). This was a landmark piece of legislation that provided oversight of hydroelectric projects on federal land or navigable waters to the FPC.  

In 1930, the FPC was officially recognized as an independent federal agency comprised of five commissioners (see FERC Explainer Part One for more information on FERC commissioners). At this time, the FPC was granted oversight of the interstate transmission of electricity and hydropower. Just eight years later, Congress passed the Natural Gas Act of 1938 (NGA), giving the FPC jurisdiction over the siting, operation and rates of interstate natural gas pipelines, and sales for resale of natural gas. While the NGA largely paralleled the procedures set out by the FPA, it deviated in some very specific and purposeful ways, shaping FERC as we know it today.

Decades later, following the 1973 oil crisis, Congress passed the Department of Energy Organization Act in 1977. The legislation sought to consolidate a number of energy-related agencies, creating the Department of Energy (DOE), but kept the FPC as an independent regulatory body within the department. At this time, the FPC was renamed the Federal Energy Regulatory Commission, more commonly known as FERC.

FERC’s Permitting Process Today

Today, FERC is the lead federal agency responsible for the review and approval of interstate natural gas pipelines. Under section 7 of the NGA, FERC must determine that new interstate gas pipeline projects or expansions are in “the public convenience and necessity” in order to approve them. To demonstrate the need for a project, pipeline developers begin by assessing market demand.  This includes hosting both informal and formal “open seasons” to solicit interest in the project.  The results of the open season process determine if enough shippers (pipeline customers) are willing to commit to long-term firm transportation contracts for pipeline capacity.  These shipper commitments also help the pipeline determine how to size its project.  If a project does not receive sufficient market support in this early stage, it will not progress further or receive approval.  Pipeline developers also engage in extensive outreach to landowners and communities along the proposed pipeline route prior to filing their certificate application at FERC so that they can identify a pipeline route which avoids or minimizes landowner and environmental concerns.

Next, many pipelines, particularly the larger projects, go through a pre-filing process with FERC to identify and address, to the extent possible, contested issues prior to filing their formal certificate application. This process can take anywhere from six to 12 months and is mandatory for LNG export projects.

After resolving as many outstanding landowner, environmental and routing issues as possible during the pre-filing process, pipeline operators then file a formal FERC certificate application. FERC will review the pipeline’s proposed route, and alternative routes, and assess whether the project will have a significant impact on human health and the environment, as required under the National Environmental Policy Act (NEPA). Numerous federal, state and local permitting agencies, landowner and stakeholder groups  engage in FERC’s review and offer comments on the proposed project.  FERC addresses identified environmental concerns and comments in its NEPA review, which typically takes well over a year to complete.  

Finally, once FERC has determined sufficient market support for a project, thoroughly reviewed the project’s environmental impact, mitigated any impacts and stakeholder concerns to the extent possible, and determined that the benefits of the project outweigh any remaining impacts, FERC will issue a certificate of public convenience and necessity pursuant to section 7 of the NGA. Virtually all FERC certificates contain numerous conditions that pipeline developers must meet to protect the environment and property, such as avoiding culturally-sensitive areas, limiting construction to certain times of the year to mitigate potential impacts on endangered or threatened species, maintaining specific noise limitations during construction and operation, and requirements for restoring land after construction. Other conditions include acquiring outstanding federal or state authorizations or permits, unless waived, prior to construction.

FERC’s Office of Energy Projects then oversees the construction of the project to ensure it remains in compliance with the certificate’s construction and operation requirements. And though not under its immediate jurisdiction, FERC actively works with other agencies, like the Pipeline and Hazardous Materials Safety Administration (PHMSA) and the Department of Homeland Security, to ensure the safety and security of the approved natural gas pipeline project both during construction and after the pipeline is in operation.  

In Conclusion

As we have seen in the Northeast and other areas across the country, additional natural gas infrastructure is needed both to alleviate current supply constraints and to complement the development of renewables to meet the growing demand for low carbon, economic energy. As the agency responsible for certificating interstate natural gas pipelines and establishing the rates and terms and conditions under which they must operate, FERC plays an integral role in the future buildout of America’s energy infrastructure to meet the needs of our nation’s homes, businesses, and communities. Thanks to the work of the commissioners and staff, FERC continues to fulfill its duty and perform timely, predictable and thorough reviews of critical natural gas infrastructure projects for our country.  

Source: Federal Energy Regulatory Commission, https://www.ferc.gov/industries-data/resources/ferc-processes

On top of being one of the busiest hurricane seasons on record, the ongoing COVID-19 public health crisis added new complexities to pipeline company preparations and response. As C.J. Osman, Vice President of Government Affairs at INGAA said, COVID-19 has “in some ways forced [the industry] to develop creative solutions to leverage technology to get work done remotely where we can and to be prepared to be acting in an abnormal environment.” And as the numbers show, the industry not only rose to the occasion, but exceeded expectations, providing enough natural gas for record-breaking electricity generation of 316 gigawatts in one day this summer.

For INGAA member Williams, reliable, virtual communications became key to their success this year.  During Hurricane Cristobal in June, the company utilized Microsoft Teams to share critical, real-time information across all levels of their organization without ever having to assemble in a conference room or office. Additionally, storm-specific Teams channels were created to provide live updates and monitor each storm to proactively pinpoint potential risks for the company’s pipeline network.

Another INGAA member company, Southern Company Gas, took to Twitter to provide updates about operations in Texas and Louisiana in the path of Hurricane Delta in October. Southern Co. acted to ensure the safety of its local communities, employees, and operations and reported that it’s Jefferson Island Storage Hub (JISH), located in Erath, Louisiana, had been evacuated, ceasing normal operations and migrating to remote monitoring.

Thanks to the steadfast work of pipeline operators and their workforces, service disruptions this hurricane season were rare, and where they occurred, were localized and brief. In preparation for hurricanes and other weather events, pipeline operators undergo extensive training and perform a wide range of business continuity and tabletop exercises and drills. Gas Control personnel are trained, in accordance with federally mandated control room management plans, to properly monitor and control the pipeline using remote sensors located along the pipe. Control personnel are also trained to recognize and respond to abnormal operating conditions and, in the event of an incident, are able to shut down pipeline systems and quickly dispatch pipeline company personnel and first responders.

The unique physical design of the U.S. pipeline network also plays an important role in the safety and reliability of the system. Because pipelines are primarily located underground, they are largely protected from the effects of severe weather. If a pipeline failure does occur, the interconnected and geographically diverse natural gas production, pipeline, and storage network provides operational capabilities to mitigate impacts to consumers, including the ability to reroute gas through a different pathway or from another source of production or storage.  This ensures the effects of an outage or curtailment remain confined. Together, the physical and operational characteristics of our country’s natural gas infrastructure, paired with robust regulatory requirements and processes, have made pipelines the safest and most efficient means to transport energy resources.

In the face of extreme weather, like this year’s record-breaking hurricane season, the natural gas pipeline industry is prepared with a range of contingency plans in the event of an incident. During extreme weather, INGAA member companies protect the safety and health of their workforce while continuing their essential work delivering natural gas to end-users. INGAA applauds the efforts of the natural gas pipeline industry this hurricane season, and every day, to keep our nation’s natural gas infrastructure, the personnel who operate it, and the the local communities it serves safe and protected.

INGAA’s Commitments to Landowners explain in detail the pledges our members have made to outline how they will work with property owners. These commitments include: negotiating in good faith; being responsive to questions or concerns; and providing accurate and timely information – to name a few. Our members are committed to fair and respectful treatment of landowners who live near the projects we construct and operate, while developing projects that are helping to meet the energy needs of communities and customers across the country.

The Federal Energy Regulatory Commission (FERC) also understands the importance of working with and being responsive to landowners and recently made its own commitments to improve its responsiveness to landowners.

Before FERC can approve a project, FERC must first find that there is a need for the proposed pipeline and that construction and operation of the pipeline will be in the public interest. In doing so, FERC balances the public benefits against the potential adverse consequences of a pipeline. This is done through a comprehensive, inclusive process in which FERC considers the demonstrated need for the pipeline, its potential environmental impacts, its effect on communities and landowners, and routing alternatives that best balance all relevant considerations.

The project development process is lengthy, often taking developers in excess of 4 years.  The FERC’s policies and the National Environmental Policy Act (NEPA) environmental review process requires a pipeline developer to address and resolve community and stakeholder feedback on the project.  In the months and years before a project reaches the Commissioners’ desks for a decision, it has often undergone dozens (sometime hundreds) of reroutes through consultation with impacted landowners, communities and other stakeholders to achieve the most environmentally sensitive and constructible routing of the pipeline.

Due to lack of knowledge or misunderstandings about this pipeline project development process, FERC is sometimes mischaracterized as providing a green light to every project that comes its way.  This is not the case.  Only the highly competitive, customer supported, and thoroughly vetted projects ever make it onto FERC’s docket for consideration.

Pipeline Project Development and Refinement Process 

FERC only sees the most competitive and commercially viable projects

The graphic above demonstrates that by the time a project is filed at FERC, the project developer has already refined significantly the size and scope of the project and confirmed the need for it with its customers.

Project developers begin generating project ideas by conducting a market assessment to determine the need, costs and viability of a project. Next comes the optimization process which may be initiated several years before a project developer files its application for approval at FERC.  The developer has engaged with many potential customers and markets and has refined the project scope to fit the needs of only those customers willing to commit to the project through transportation service agreements.  In addition, once customer negotiations are complete, the FERC policy is to hold an Open Season – an open “call out” to the marketplace – in order to make sure all potential customers for a project are identified and given an opportunity to seek capacity.  This step confirms the final market need for the project and prevents overbuilding or duplicative projects. 

After confirming market need for the project, finalizing capacity design and costs, and identifying a proposed route based on balancing landowners impacts with avoiding environmentally sensitive areas, the developers of very large projects will often initiate the formal “prefiling” phase at FERC. This phase, lasting at least 6 months, involves further consultations with landowners, regulators, and federal and state permitting agencies to identify and resolve as many issues as possible before filing an application for the project to obtain FERC approval. Thanks to the market assessment and prefiling phases (whether formal prefiling or informal stakeholder engagement), by the time a pipeline project is brought forth for consideration by the Commission, it has already undergone extensive development, environmental reviews and permitting consultation and has the market and customer support to clearly demonstrate that it is in the public convenience and necessity. 

If FERC approves a project but the project developer and a landowner cannot reach a voluntary right-of-way agreement, Congress has granted pipelines eminent domain powers that can be used, when necessary, to acquire individual tracts of land along the approved pipeline right-of-way. Congress provided this authority because it recognized that there is a public need to build such infrastructure, Members of INGAA view the use of eminent domain as an absolute last resort, as demonstrated by data regarding the frequency of its use. According to an INGAA member company survey of projects placed into service between 2008 and 2018 – a total of 7,200 miles of interstate natural gas pipelines – over 98 percent of those right-of-way easements did not require a judicial determination for eminent domain.  Even when eminent domain is granted, the court ensures that the landowner is fairly compensated for the use of their land.

The need to construct, operate and maintain natural gas pipeline and storage infrastructure to meet the nation’s energy demand will continue for years to come. Members of INGAA know that we cannot build or maintain our natural gas infrastructure systems without strong landowner relationships. We are proud of members’ work and commitments to landowners and we commend FERC for its efforts to  improve landowner engagement.

Working together in good faith – operators, landowners, and regulatory agencies – is our commitment.