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Although the federal government is responsible for developing, issuing and enforcing pipeline safety regulations, most inspections are conducted by state regulatory agencies, which are responsible for regulation, inspection and enforcement of pipelines within state boundaries.
The Federal Energy Regulatory Commission is charged by Congress with evaluating whether interstate natural gas pipeline projects proposed by private companies should be approved.
FERC reviews applications for construction and operation of interstate natural gas pipelines under the authority of section 7 of the Natural Gas Act. FERC review ensures that applicants certify that they will comply with Department of Transportation safety standards.
Under the authority of the Federal Power Act, FERC has the exclusive authority to license most non-federal hydropower projects located on navigable waterways or federal lands, or connected to the interstate electric grid. Applicants for licenses may use the Integrated, Traditional, or Alternative Licensing Processes.
As part of that responsibility, FERC: Regulates the transmission and wholesale sale of electricity in interstate commerce. Reviews certain mergers and acquisitions and corporate transactions by electricity companies. Regulates the transmission and sale of natural gas for resale in interstate commerce.
Natural gas can be transported on land via pipeline or on water via ship. Most of the world's natural gas is delivered by pipeline. Large networks of pipelines quickly deliver natural gas on land to major processing facilities and end consumers 2.
FERC does not have the authority to regulate transmission line construction. This authority rests with the individual States or State Public Utility Commissions .