National Niche Landmark Changes to Pipeline Approval Process Issued by Federal Energy Regulatory Commission (FERC) In February, FERC voted to update the guidelines. The updates issued on February 17, 2022, affect FERC policies determining whether to approve or deny an application to construct interstate natural gas pipelines. The first revisions to FERC’s policy for certification of interstate natural gas projects since 1999, these issuances are significant to new interstate natural gas pipeline development and construction. The two updated components are: (1) an Updated Certificate Policy Statement (PL18-1) (“UPS”), revising how the Commission will evaluate and weigh specified factors by which it makes its determination. (2) an Interim GHG Policy Statement (PL21- 3) (“IPS”) is more technical in nature and
environmental impact statements on natural gas projects that emit above 100,000 metric tons per year of greenhouse gases, which shall be treated as having a significant impact on climate change. Projects that cross the threshold will require an Environmental Impact Statement (“EIS”), a process that opponents say can be lengthy and unwieldy. As part of the GHG analysis, FERC will consider emissions from the construction of the project and may also include those originating from upstream production and downstream combustion. Consequently, it is likely that the vast majority of interstate pipeline projects will require an EIS. FERC is currently seeking comment on the assessment method regarding the significance of a proposed project’s contribution to climate change. While this policy is being finalized, the IPS will apply. Links for the UPS and IPS are below. Updated Pipeline Certificate Policy Statement (PL18-1-000)
provides specific guidance on how the Commission will make determinations under the UPS on factors such as greenhouse gas (“GHG”) emissions from the proposed project.
Interim Greenhouse Gas (GHG) Emissions Policy Statement (PL21-3-000)
In March, U.S. senators grilled energy regulators on the recently approved guidelines. “In my view, there is an effort underway by some to inflict death by a thousand cuts on the fossil fuels that have made our energy reliable and affordable,” said Senator Joe Manchin, a Democrat from natural gas producing West Virginia. Manchin heads the Senate Energy Committee, at which all five FERC members appeared in a hearing. FERC Chairman Richard Glick stated the goal of the guidelines is to ““provide an updated, legally durable framework” that incorporates guidance from federal courts that the commission has received concerning its approach on permitting natural gas pipelines and liquefied natural gas facilities. ******************************************************
The UPS details how FERC will evaluate and weigh all factors bearing on the public interest in determining whether a new interstate natural gas transportation project is required by public convenience and necessity under the Natural Gas Act (“NGA”). Updated and expanded considerations were added regarding a proposed project’s impacts on customers, landowners, climate, environmental justice communities and other stakeholders. FERC will apply the new UPS to any currently pending applications for certificates. The IPS explains how FERC will evaluate a proposed project’s impacts on climate change (e.g. GHG emissions). The IPS requires
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