Extreme weather events and increased energy demand from data centers and advanced manufacturing are pushing America’s power grids to capacity. Those challenges were front and center at a recent House Energy and Commerce Subcommittee hearing on oversight of the Federal Energy Regulatory Commission (FERC), stressing the importance of reliable energy to support rising demand.
The hearing featured all five FERC commissioners, including the recently appointed chairman, Laura Swett. Testimony at the hearing underscored the importance of natural gas generation in providing grid stability and energy affordability. Statements from the FERC chairman, commissioners, and lawmakers demonstrated that FERC is moving in the right direction: prioritizing common-sense, reliable energy solutions over ideological missions.
As Chairman Swett said in her testimony:
“I am committed to guiding FERC through the monumental growth opportunity before us. We’re already working to streamline FERC processes, cut down connection times, and ensure efficient, durable infrastructure development and maintenance.”
Chairman Swett’s statement has made it clear: energy pragmatism is back on the table for the Commission. As power markets are being challenged by large loads and rising costs, tapping into a secure and affordable energy supply is not optional.
Forward-Thinking from FERC
Since Chairman Swett assumed office, FERC has taken critical steps to meet rising energy demand from data centers and American reindustrialization by streamlining processes to provide dependable energy loads. For example, the Commission is looking to expand the natural gas blanket certificate program, which provides efficient approval for routine developments of natural gas infrastructure, to LNG and hydroelectric projects. The certificates allow developers to build the infrastructure America needs without being burdened by unnecessary and duplicative environmental and cost assessments.
This and other measures to streamline infrastructure build-out—like FERC’s directive to PJM on data center co-location with energy generation facilities— will help tap into the nation’s abundant natural gas supplies. As FERC Commissioner David LaCerte said in his testimony:
“Delay is no longer the currency it once was and we frankly cannot afford these types of delays. Fortunately, we’re in a moment today where the President, Congress, and the Supreme Court have all stressed that implementation of certain permitting and environmental statutes and policies, like the National Environmental Policy Act, were intended to be used to enable responsible infrastructure development, not stymie it.”
Natural gas is essential to provide stability to the grid during extreme weather events, such as the recent Winter Storm Fern. During the storm, natural gas demand surged by 14 percent in the lower 48, providing key-supply to help Americans stay warm and keep the lights on. Additionally, American natural gas and LNG supply will be crucial to winning the AI race and securing domestic and international stability.
What’s at Stake in the States
Under the leadership of Chairman Swett, FERC has shown a renewed willingness to make common-sense energy decisions that prioritize reliability and affordability for American consumers.
Unfortunately, the same cannot be said of some state regulators. Limited pipeline capacity in the northeast is driving prices up, while needed energy infrastructure projects approved by FERC to resolve this issue are delayed by states. Here are some of the most egregious examples which have been previously identified by EID:
- The Constitution Pipeline, which was approved by FERC in 2014 was stopped after New York denied a water permit.
- The Northeast Energy Direct, which would have brought gas from Pennsylvania to Massachusetts, was blocked by Massachusetts in 2016.
- New York rejected the Northeast Supply Enhancement project in 2020.
- The Access Northeast pipeline was never completed.
At the hearing, Representative Nicholas Langworthy of New York pointed to another growing concern: state and city wide all-electric building mandates that ignore real-world grid constraints and affordability challenges. EID has discussed extensively how these illegal electrification mandates will drive up prices for consumers.
Time for Congress to Step Up
Because FERC’s authority is limited to the bulk electric system, it has little ability to counter this kind of state overreach. But, as pointed out by FERC commissioners in the hearing, there are steps Congress can take to remove regulatory bottlenecks and deliver Americans the energy they need.
Take the Mountain Valley Pipeline for example. After receiving FERC approval and then subsequently bogged down by frivolous litigation, Congress and the Biden administration united in a bipartisan effort to get language to approve the pipeline signed into law. Gas began flowing through the pipeline in June 2024: a huge win for tapping into America’s abundant natural gas resources.
As former Senator Joe Manchin said at the time of the bills’ passage:
“I am thrilled that Republicans and Democrats came together to complete the Mountain Valley Pipeline and shore up American energy security… the passage of the Mountain Valley Pipeline and the critical agreement to avoid default is yet another example of the solutions that can be reached when we work in a bipartisan way to deliver results for the American people.”
Additionally, permitting reform can play a key role in reducing barriers to unleashing natural gas production. Congress is already taking strides to streamline processes under NEPA. Clarifying the parameters of the Clean Water Act and addressing the timelines around state veto power could also be major steps to ensure that essential energy projects can move forward in a timely and predictable manner.
As Interior Secretary Doug Burnum said:
“If we want to supercharge the U.S. economy, one of the things we have to do is speed up permitting. And it’s not about new capital, it’s getting the capital that’s already been approved actually being deployed.”
FERC’s Return to Reason
FERC’s return to a more pragmatic, reliability-focused approach is a welcome shift in an era of growing energy demand and rising prices. But federal regulators alone cannot fix a system weighed down by overlapping rules and political bottlenecks.
Now that FERC is getting serious about delivering stable natural gas supply, it’s time state and federal policymakers did too.
Bottom line: A recent Energy and Commerce hearing showed that FERC is prioritizing common-sense solutions to unleash America’s natural gas supply. Now, Congress and the states must follow suit by cutting red tape to critical infrastructure projects that will provide reliable, affordable energy for all.
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