Permitting Delays Persist

The recent declining price of oil is not the primary brake on projects. "Permitting—not the price of crude—is the No. 1 cause of pipeline project delays," says O'Neil, adding that regulatory red tape and other permitting-related matters are "what pushes projects to the right" scheduling-wise.

INGAA's Santa agrees: "While we have a good legal and regulatory framework for siting interstate natural gas pipelines, there are some opportunities for incremental improvements. One of those opportunities is in connection with the variety of federal and state permits that a pipeline project developer must obtain in addition to its FERC certificate."

Santa says that delays in obtaining those permits can lead to costly delays in pipeline construction starts. "Congress tried to address this problem in the Energy Policy Act of 2005, but unfortunately did not include the authority to hold those permitting agencies accountable for timely decision-making."

As a result, he says, INGAA is pushing "legislation to improve pipeline permitting," including bill HR 161, which is sponsored by Rep. Mike Pompeo (R-Kan.). That measure, formally known as the Natural Gas Pipeline Permitting Reform Act, would require that agencies responsible for issuing a license, permit or approval under federal law approve or deny the request within 90 days after FERC's issuance of its final environmental approval.

FERC could extend the 90-day period by 30 days if the relevant agency proves that it could not finish its review in that time. "That bill already has been approved in the House [of Representatives], and several senators have expressed interest in sponsoring companion legislation in the Senate," says Santa. "I think the prospects for Senate passage are better this year than last, but we'll have to see."