The second quarter of 2026 brought several important regulatory updates from federal and California agencies affecting our industry. These updates are summarized in the following sections.

FEDERAL REGULATORY UPDATES

Federal Energy Regulatory Commission

A proposed rule to revise the Federal Energy Regulatory Commission’s (FERC’s) blanket certificate program was published to the Federal Register on May 27, 2026. The proposed rule seeks to revise Code of Federal Regulations Part 157, Subpart F.

The blanket certificate program was introduced by FERC in 1982 to allow interstate pipelines subject to Section 7 of the Natural Gas Act to obtain a one-time certificate to undertake certain activities, including the construction and operation of pipeline facilities without a case-specific authorization from FERC. This blanket certificate allows for interstate pipelines to conduct covered activities under a streamlined, more flexible regulatory process.

FERC’s revisions to Subpart F under the proposed rule would expand both the scope and scale of interstate pipeline projects that are eligible for blanket certificates, including both automatic authorization projects and projects undertaken without prior notice. More specifically, the cost thresholds for projects under the certificate program would be raised in the following instances:

• increasing the cost limit for projects undertaken without prior notice (i.e., automatic authorization) from $14.5 million to $30 million,
• increasing the cost limit for projects undertaken with prior notice from $41.1 million to $86 million, and
• increasing the cost limit for projects undertaken for the testing and development of underground storage reservoirs without prior notice from $7.9 million to $17 million.

 

These increases in the maximum project costs account for the rise in construction costs since they were previously analyzed in 2006.

In addition, FERC also proposes to use the Handy-Whitman Index in lieu of the Gross Domestic Product Price deflator to calculate annual adjustments to the project cost limits. FERC has found that the Handy-Whitman Index more accurately reflects the annual cost increases that natural gas companies experience. Other proposed changes to the rule include allowing for incremental rates for some projects under the blanket certificate, revising the protest procedure for prior notice projects, and extending the 1-year in-service requirement to 2 years for completing projects and ensuring that they are in service within 2 years of the activity’s authorization. Overall, the proposed rule seeks to increase the quantity of interstate pipeline projects that are eligible under the blanket program in an effort to ensure that these projects continue to be developed in a timely manner with streamlined regulatory review. The 60-day comment period on the proposed rule ends on July 27, 2026.

United States Army Corps of Engineers

On June 11, 2026, the United States (U.S.) Army Corps of Engineers (USACE) Sacramento District issued Regional General Permit (RGP) 5 (National Energy Emergency Activities). RGP 5 authorizes activities involving the discharge of dredged or fill material into waters of the U.S. for energy and critical minerals production, transportation, refining, and generation activities as described in Executive Order (EO) 14156. The USACE’s Sacramento District boundaries include the Central Valley and Sierra Nevada within California, as well as Nevada and Utah.

To obtain coverage under RGP 5, an applicant must submit a Pre-Construction Notification (PCN) to the USACE, including a description of the activity and proposed impacts to waters of the U.S., and adhere to the general conditions and terms of the permit. In order to qualify for RGP 5, a project cannot exceed the permanent loss of 1 acre or 500 linear feet below the ordinary high-water mark or mean high-water line in navigable waters of the U.S. For the permanent loss of 0.1 acre of more of waters of the U.S., compensatory mitigation at a 2-to-1 ratio is required. RGP 5 is valid for a period of 5 years and will expire no later than June 11, 2031.

RGP 5 may only be used for National Energy Emergency activities as defined in EO 14156 and it does not replace or supersede RGP 8 (Emergency Repair and Protection Activities). RGP 8 authorizes the discharge of dredged or fill material into waters of the U.S. for activities involving an emergency situation.

United States Department of Agriculture

A final rule revising implementing regulations in the National Environmental Policy Act (NEPA) was published in the Federal Register and became effective on April 3, 2026. The U.S. Department of Agriculture (USDA) adopted the interim final rule (IFR) that was published on July 3, 2025 as final, with a few changes. The IFR revised departmental regulations implementing NEPA and consolidated seven agency-specific NEPA regulations into a single department-wide framework. This consolidation reduced the volume of regulations by approximately 66 percent.

CALIFORNIA REGULATORY UPDATES

State Water Resources Control Board

On May 18, 2026, the State Water Resources Control Board (SWRCB) signed General Clean Water Act Section 401 Water Quality Certification Order No. WQ 2026-0016-DWQ for RGP 5 Energy Emergency Activities. The certification became effective upon the USACE’s issuance of RGP 5 on June 11, 2026. 

Discharges of dredged or fill material to only waters of the state outside of federal jurisdiction require separate Waste Discharge Requirement authorization pursuant to the Porter-Cologne Water Quality Control Act.  

California Fish and Game Commission

Bendire’s Thrasher and LeConte’s Thrasher

The California Fish and Game Commission (Commission) published a Notice of Findings of Candidacy (Notice) for Bendire’s thrasher (Toxostoma bendirei) and LeConte’s thrasher (Toxostoma lecontei) on April 29, 2026. The Notice states that the Commission accepted for consideration the petition submitted to list Bendire’s thrasher and LeConte’s thrasher as threatened or endangered species under the California Endangered Species Act (CESA) during its meetings on April 15 and 16, 2026. Therefore, the Commission has determined that both species are candidate species as defined under California Fish and Game Code Section 2068. Within 1 year of the Notice’s publication, the California Department of Fish and Wildlife (CDFW) must submit a written report indicating whether the action to list the species under CESA is warranted.

Swainson’s Hawk

On June 10, 2026, the California Building Industry Association submitted a petition to the Commission to de-list Swainson’s hawk (Buteo swainsoni), which is currently listed as a threatened species under CESA. Following the Commission’s publishing of the notice of receipt of petition, the Commission will refer the petition to the CDFW, in accordance with California Fish and Game Code Section 2073. Within 90 days of receipt of the petition, the CDFW will evaluate the petition and provide a written evaluation to the Commission indicating if the petition meets the requirements of California Fish and Game Code Section 2072.3 and determining if there is sufficient scientific information that delisting the species may be warranted.