INGAA urges FERC to reconfirm Certificate Policy Statement

The Interstate Natural Gas Association of America (INGAA) urged the Federal Energy Regulatory Commission (FERC) to reaffirm its existing Certificate Policy Statement in extensive comments filed Wednesday.

FERC issued on April 19 a notice of inquiry (NOI) on its policy statement on the certification of new interstate natural gas transportation facilities.

“As further discussed herein, the Commission’s Certificate Policy Statement has provided a durable framework to review certificate applications in a reasoned, consistent, and predictable manner,” INGAA said. “While incremental improvements may be achieved through this proceeding from incorporating stakeholder suggestions, including INGAA’s suggestions detailed below, there is no evidence to suggest the need for wholesale policy changes. To the contrary, wholesale policy changes likely would result in problematic consequences to the detriment of domestic consumers.”

INGAA also made suggestions as to how FERC could improve its review process as well as landowner engagement. The trade group suggested that FERC revise its July 2015 Staff Best Practices guidance and approve those revisions as part of a new policy statement.

Additionally, INGAA emphasized that precedent agreements, which are long-term transportation contracts between pipelines and prospective shippers, are the “best and most objective” demonstration of public need.

“Proposed projects do not move forward unless prospective shippers contract for pipeline capacity and shippers would not make such a commitment absent strong evidence of market need for additional natural gas in the market to be served by a proposed project,” INGAA said.