The Federal Energy Regulatory Commission (FERC), the agency responsible for regulating pipeline infrastructure announced that it will take into account greenhouse gas emissions and environmental justice concerns when reviewing natural gas projects. This announcement could mean that the commission could block interstate natural-gas pipelines, storage facilities, or liquified gas terminals due to climate and environmental reasons.
The Environmental Groups include the Natural Resources Defense CouncilThe Food and Water WatchThe decision was hailed by industry groups, who suggested it could mean that FERC will play an active role decarbonizing the energy sector. Conservatives and industry organizations like the Interstate Natural Gas Association of AmericaThey were disappointed by the decision and argued that it would slow down the development of natural gas infrastructure.
The FERC’s announcement comes on the heels of multiple legal challenges over the years, with one key issue centered on whether or not the agency needed to take into account downstream pipeline emissions — emissions produced when customers burn the natural gas transported by pipelines — when weighing the effect a project will have on the environment.
In March 2021, FERC looked at the construction of a nearly 100-mile stretch of natural gas pipeline connecting South Dakota and Nebraska. It also considered what climate change impacts the burning of the transported gas might have. But at the time, the agency only looked at greenhouse gas emissions on a case-by-case basis and had no policy in place for evaluating what a project’s emissions would be.
According to FERC policy statements, the Commission willWhen assessing projects, it is important to consider the impacts on any environmental justice communities. It will takeTake into account downstream emissions. The agency will also flag any project that emits more carbon than 100,000 metric tonnes per year. This will trigger the need for an environmental assessment statement, the most stringent form under the National Environmental Policy Act. The new certification framework will apply to all pending and future projects immediately. However, it could be modified based on additional public feedback.
We have seen the effects on pipeline projects when federal agencies (including the Commission) fail to fulfill their statutory responsibilities for assessing the potential impacts of a project on communities, landowners, and the environment. Richard Glick, chairman of FERC, stated in a statement. Statement. We must ensure that our orders are legal durable by ensuring that the Commission meets all of its statutory obligations.
The commission’s Republican members disagreed. They claimed that the agency had outstepped its boundaries by interpreting the Natural Gas Act as well as the National Environmental Policy Act. In a StatementCommissioner Mark Christie wrote that FERC is an economic regulator. NotAn environmental regulator.
